An Epitome of Strength
The role of PSUs in shaping India's economy is commendable and their strength and efficiency reflect robustness and confidence in the economy. The idea of making PSU rose in the mind of Nehru and started building this foundation in 1950s whose fruits, we enjoy today. PSUs are classified as Navratna and Mahanavratna. These are a kind of backbone to our economy.
For any PSU to be successful, it is important that they must be supported by the state. The idea of this thing can be taken from the global fortune 500 list in which 95 firms of state operated enterprises out of 124 are from China which overtake the USA having 118. India along with Brazil, Mexico add 17 to the list.
It is seen that investments are high in PSUs. In fact, investment took 40% of GDP surge in 2010 and recent growing sensex is also one of its effects. The rising profitability meant that Indian PSUs have been aggrandising. On the contrary, it was also seen that those PSUs which were not supported by State failed brutally for instance the collapse of HMT which in turn compellef to import 80% of machine tools, the bedrock of machine tools. The undermining of the pharmaceutical PSUs like IDPL and HAL make them active ingredients from China.
At this point many, PSUs have been disinvested and in turn no new PSUs are set up. By privatizing PSUs, we are not only undermining economy but also putting ourselves at risk in the hands of foreign powers which can prove to be fatal. It's time to manouvre decisive move in strengthening our PSU to strengthen sovereignty and boosting economy.