Page 16 - August-2020-Issue

ARTICLE

Viewing Public Sector

with a new lens

Atul Sobti
Director General,
SCOPE & Former CMD,
BHEL

he globe is staring at a worth $45 trillion which is close private sector, which were lack-
new crisis - apandemic to half of global GDP. ing in financial resources, the
Twhich has tested waters for Government created the public
everyone right from Government As the global SOEs continue to sector enterprises for attaining
to common man. While there is grow and stride towards greater socio - economic development
growing fear of uncertainty and contribution to their economies, and a clear mandate of serving
prolonged deglobalization, op- Public Sector in India has also the broad macro-economic pa-
timism is reflected by the public grown in size and matured in rameters of economic growth,
sector which has stood firm mak- operations. So much so that they achieving self-sufficiency in pro-
ing way for safety of lives and have integrated with both the duction of goods and services,
livelihoods while ensuring seam- economic and social fabric while facilitating long term equilibrium
less supply of essential services. existing for nearly seven decades in balance of payments and en-
in the Indian space. They have suring stability in prices and cre-
The pandemic has brought to supplemented the growth of the ate benchmarks for prices of es-
light the constructive and essen- Indian economy bybuilding a sential items.
tial role of Public Sector or State strong industrial infrastructure
Owned Enterprises (SOEs) across and ensuring social well-being of Till the period of liberalisation,
the world. Globally, SOEs have the people. PSEs were operating inmonopo-
presence in many countries – listic or oligopolistic markets
ranging from China and Russia The evolution of the fraternity be- and created large conglomer-
in Asia to Germany in Europe. gan prior to independence where ates. However, with liberalisation
They are considered to be major there were only a few govern- in 1991, PSEs were exposed to
players in many economies so ment departments in the coun- competition from domestic pri-
much so that they undertake 55 try. Post-independence, it was vate players and multi-national
% of total infrastructure invest- felt that in order to match steps companies. They undertook sig-
ment in emerging and develop- with the global economy massive nificant initiatives for up-scal-
ing economies. While continuing investments were required for ing technologies and building
to have a multinational presence, core industrialisation of Indian capacities resulting in self-re-
SOEs across the world, especially corporate sector. Hence, rather liance and unfolding of many
in emerging markets, have assets than completely relying on the success stories.

Edited version of this article was published in FINANCIAL EXPRESS on 1 July, 2020.
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16 KaleidOscope August, 2020