Political Connotations Of The Public Enterprise Reform In India

After the independence, India developed the public economy by the state investment in order to build The Socialist Type of Society. The disadvantages of public enterprises which gradually exposed during the several decades of development, such as the economically inefficient and loss, caused serious financial burden on the country. The government of India has begun to rectify for the public enterprises aiming to increase economic efficiency from the 80s.The large-scale reform about the public enterprises, launched by P. V.Narasimha, Rao's government in the early 90s, were considered to be the turning point in the development of public enterprises. This caused the academia's concern and the scholars discussed the privatization in the reform fiercely, however, after carefully comparing the measures taken by the government of Rao and Rajiv Gandhi. We would find the closest continuity and succession in the reform which was determined by the India's political traditions and social realities. That's why India's government couldn't take the fiercely measures in the reform of the public enterprises except the moderate adjustment.