Central Public Sector Enterprises in India: A Case of Policy and Perception Conundrum
| Author | Sharat Kumar |
| DOI | 10.1177/00195561211025958 |
| Published date | 01 June 2021 |
| Date | 01 June 2021 |
| Subject Matter | Articles |
Central Public Sector
Enterprises in India:
A Case of Policy and
Perception Conundrum
Sharat Kumar1
Abstract
The fact that there is a direct relationship between higher investment and higher
economic growth is accepted by all. Central Public Sector Enterprises (CPSEs),
in this respect, have been vehicles of large-scale investment in the country. A
good many of these enterprises are listed on the stock exchanges. Their mar-
ket capitalisation, however, recorded a significant fall in recent months despite
these companies showing good performance on their ‘profit and loss’ accounts.
The recent government pronouncements regarding CPSEs are observed to
have adversely impacted the market sentiments and consequently their market
capitalisation.
The article argues that a White Paper on implementation of pending reforms
as recommended by the Panel of Experts on Reforms in CPSEs, set up by the
Planning Commission earlier, would go a long way in reversing the current trend
of fall in market capitalisation of these enterprises.
Keywords
New Industrial Policy, 1991, market capitalisation, privatisation, Fortune 500
companies
Introduction
The origin of public sector enterprises may be traced to the Industrial Revolution
that took place in England over the period 1760–1840. As the countries of Europe
felt that they were left behind, the governments of France and Germany, for
instance, set up industries under their direct control in the late 18th century.
Article
Indian Journal of Public
Administration
67(2) 177–187, 2021
© 2021 IIPA
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DOI: 10.1177/00195561211025958
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1 Former Senior Adviser, Ministry of Environment and Forests, Government of India, New Delhi, India.
Corresponding author:
Sharat Kumar, Former Senior Adviser, Ministry of Environment and Forests, Government of India,
New Delhi, India.
E-mail: sharat.kumar.dr@gmail.com
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