Reform and Privatization of State-owned Enterprises in India
- Kunmin Kim and N. Panchanatham
- Dec 2019
- Asian Development Bank Institute (ADBI)
- India
The economic reforms in India are notable because of the development of private enterprises that are free from functionary management. In this country, the public sector needs renovation, since it makes a crucial contribution to national investment and growth. This article therefore, aims to analyze partial privatization, and restructuring of India’s state-owned enterprises
(SOEs), which need more dynamic shaping. Central government SOEs have fostered their profitability, investments and growth since India transferred to market-based prices and incentives with better contract enforcement. In the manufacturing sector, the profitability and efficiency of SOEs are superior to those of private enterprises. However, the performance of SOEs in services is poorer than that of their counterparts. Finally, the study recommends
policies to improve the performance of SOEs in India.
