Question:

Appraise the Navratna policy adopted by the Government of India in the reforms of 1991.

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The Navratna policy made key PSEs financially autonomous to compete effectively in a liberalised economy.
Updated On: Jan 14, 2026
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Solution and Explanation

The Navratna policy was introduced to empower select public sector enterprises (PSEs) with greater autonomy to compete in the global market. Key highlights:
Certain high-performing PSEs were awarded ‘Navratna’ status.
These enterprises gained operational and financial autonomy in areas like investment decisions, joint ventures, and human resource management.
Aimed at increasing efficiency, competitiveness, and profitability of public enterprises.
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