Question

"Navratan Policy of the government has helped in improving the performance of Public Sector Undertakings (PSUs) in India." Do you agree with the given statement? Justify your answer with valid arguments.

Hint:

Post-1991 reforms altered the RBI’s role towards monetary stability and inflation control. The Navratna Policy has empowered key PSUs to thrive in a competitive environment.

Answer 1

Yes, the Navratna Policy has contributed significantly to improving the performance of PSUs: 
- Operational Autonomy: Under the Navratna Policy, select PSUs were granted greater autonomy in financial and operational decisions, allowing them to compete in the global market. 
- Increased Competitiveness: PSUs like BHEL, ONGC, and NTPC have become competitive and efficient, contributing to India’s industrial development. 
- Performance-based Accountability: The policy introduced performance benchmarks, leading to better efficiency and accountability in PSUs. Thus, the Navratna Policy has played a vital role in enhancing the performance of India's leading PSUs.