Should the public sector be privatized?

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182 comments Page 1 of 19.

Ankit kapil said:   5 months ago
Firstly we have to understand what is privatisation in simple word?

So in simple words, privatisation is giving ownership of public sectors to private player.

About it is good or bad,

What I think is privatisation is good but under some conditions or limit by the gov, because privatisation has both advantages and disadvantages as well. So for conclusion, we have to analyse both advantages and disadvantages.

So, frst we talk about some advantages:

Privatisation helps country to deal with unemployment by providing more job opportunities and this helps in countries economic growth. Also, private sector provide better services then public sectors. Because of privatisation, companies works freely without pressure of politics, which reduces corruption. Also employees in private sectors are more disciplined then employees of government Sectors because they have regular check but govt employees didn't have any regular check on them, thus they take their job responsibility very casually. Private sectors works very smooth with proper rules and regulations and they are also doing better then public sectors. We can see a live example by analysing difference between private and govt schools. Studies in govt. School is not very good as compared to studies in private schools. Private schools are far better then public schools in term of majority of things, they provide good infrastructure with disciplined faculty and also variety of events for extracurricular activities.

So, these are some advantages, now we analyse some disadvantages of privatisation-.

So, main disadvantage of privatisation is increase in price of services and this is a major flaw in privatisation. In privatisation, private companies mark price of their goods and services very high as compared to public sectors. We can see examples as jio, airtel etc. No doubt they provide better services but for middle class and poor people increase in price is a very big issue. One more drawback of privatisation is unstable jobs. Jobs in public sectors are very stable as compared to private sectors. Private sector puts a lot of burden on their employees. Main motive of private player is making more and more money and stability of employee is their second concern.

So these are some flaws of privatisation.

So, what helps is partial privatisation. In which govt puts a little bit of mandatory rules and regulations on private sector and set a limit on increase in price.

Thiyagachozhan said:   9 years ago
Hi each and everyone,

First of all why the Public sector should not to be privatized?

The absence of private sector in many departments makes the public sector so lazy. The people working in the public sector is as not so informative to the people as the people working in the private sector. The one and only reason for this fact is that mostly the one who works in the private sector is not an permanent one but the one who is in the public sector is so. It is the major reason which makes them more lazy.

The second thing is that the higher officials of the private sectors are more strict than than an public one because there are under the compulsion to finish the work at the fixed time and in the fixed manner. But the higher officials in the public sector due to political reasons and many there are not as strict as in the private sectors.

I have many reasons for why the public sector to be privatized. They are:

1. Private sectors avail the same facility as that of the public sector in the low cost.

2. Private sectors is more customer friendly than the Public sector.

3. Private sector finishes the job more faster than the Public sector.

4. Negligible amount of corruption in the Private sector. But the Public sector is full of corruption.

5. Private sector people fears on the customers. But the customers fears on the public sector.

We can come to the conclusion easily by seeing the following details:.

The public sector is for people but mostly the people is not preferring the public sector. The ticket fare of the Government express bus is higher than the Private Express bus. Though it is not safe the people prefer the Private Bank than the Government Bank because of the worst service of the Banker in the Government Bank. Likewise there are many reasons why public sector to be privatized.

The Private sector is more customer friendly than the Public sector. So the Public sector should be privatized for the best results.

The Private sector can bring Wealth and Prosperity to any of the nation.

Be corruptless.

Work for the nation.

Jai Hind.

ABHINAV said:   7 years ago
I am not in a favor of privatization of banks, If we privatized our banks then the same condition will come up that bank will not go to unprofitable area (rural areas) and then our whole banking history shows that how we merged one banks with other to connect rural areas with bank, no private sector will bear loss by going to rural area where is less business, and if this happen what will happen to our govt so-called efforts to Financial inclusion, it will be irony that on one side govt is pushing financial inclusion and on other side giving chances to private player to refuse it and we can assume it from the recent payment banks where many private sector bidders for payment banks turned down their proposal to open a payment banks citing a reason it's highly competitive and terms are non-profitable.

Already banking sector is facing issue of NPA and if we privatize our public sector banks then no bank will bear additional cost of opening a branch in rural sector where is no or less business for them, and its also seems not a good option if we see our past many efforts were done by past governments nationalized the banks by buying majority of stakes and in again 1991 economic reforms and then in again 2004 they owned IDBI shares made it one of the public sector bank now again selling stakes of IDBI and again making it private make no sense as the question comes how many times we will privatize and publicize the banks again and again if it was the correct option then condition of bank that today wouldn't be that much vulnerable it means answer lies somewhere else we need to find that answer and for the NPA's problem we need to strengthen our laws that punish every defaulter so that no one can dare to be willful defaulter.


SREENATH said:   8 years ago
Hello friends.

Every work can't be carried by government every work can't be done by private so they have to split but regulatory authorities should regulate all the sectors sectors like railways water supply defense etc, has to be looked by government directly apart from that other sector has to be looked by private with regulations of regulatory bodies most of tax money is wasted because of the public sector undertakings example if air India, BSNL faces loss we have bear that government will use our tax and instead they can provide scholarships, funds etc.

Based upon income every one is entitled for the basic things by this our tax money will be saved and it leads to development of all individuals sectors like education, banking, airways, etc has to be privatized because of the competition customers can avail the service at affordable or even may be at cheaper cost those who can't afford government can support that individual regularities like RBI, train are performing well all the universities has to be privatized but main important thing government should monitor everything through its agencies as per my understanding government should hold these sectors fully deference, police, judiciary, railways, electricity, roadways, (for electricity government should encourage self dependency like they should productive own electricity by solar or what ever possible means).

And friends don't think about job security these public sector undertakings have been established for benefit of public not only to create job to ensure job security in private parliament can amend civil rights laws in the beginning it will be hard for us but in future we can make things possible think from all aspects please I am just posted my personal opinion.

Akshada said:   9 years ago
Hello Friends,

As per the view of all my friends stated above, it is true that privatization of public sectors will lead in high prices for all things and ultimately middle class (common man) has to repay for it heavily.

As per my view, instead of making public sectors totally private, we should adopt the methodology of private sector that in public places. For eg: In Govt. hospitals there should be a keen watch on activities of the workers and doctors. Timelines and targets should be set for everyone. Regular feedbacks from patients should be taken. In this case it might be possible that sometimes public may also misuse the liberation. At that time the case should be verified and necessary actions must be taken.

The very basic thing of public sector that needs to be changed is the way they interact with the common man. If politeness is taught to every public sector employee most of the work will be simplified. Rudeness, irate, arrogance is the main symbol of public places, due to which most of the people prefer private hospitals etc. If this picture is changed, there are good hopes. Similarly, Govt. should start taking hold of private sector, as though they provide good facility, common man is deprived of all the facilities due to money.

India is a developing country. And if Govt. does not take necessary actions for solving basic needs of Indians, poor will remain poor and will have no chance for further development.

Afterall, Govt. of India levy's heavy taxes in all the sectors and thus is liable to provide good facilities as per the money paid by common man.

Equality, politeness, humble-service, co-operativeness are the things that needs to be nurtured for India to grow at faster rate.

Vivek said:   8 years ago
Hello everyone !

Privatization as it denotes is something which makes any organization or sector independent of government interference, liability and control. Given the recent trends where many governmental or public sector undertakings are not performing well or we may say. Are not in pink of their health. Were in the consideration of the government to privatize them. Although its obvious that a sense of competition always leads to the evolution of something better.

Likewise is the work ethics of most of the private organizations. But what I think, is, that losing the control over the organization only looking at its financial aspect, overlooking the organizations employees future over it, is not something worth risking. As it is understood private players has to award their share holders.

So the profit is the priority and they may end up cutting some corners, that is, the jobs and the main motive of public service is never achieved, and creating jobless population is something a developing economy shouldn't look up-to. Cost goes up, as a tax payer one has to pay tax to utilize governmental facilities but for the private facilities its extra besides the regular tax thereby increasing the burden.

Being a non governmental body it is not easy to held them accountable for any wrong doings. Full autonomy is a double edged sword in this context. Might work wonders or might ruin it all. Still many governmental organizations are partly privatized like 75:25 government to private or 51:49 and more but yes the government always has the upper hand in it so it alienates the apprehensions of all those privatization omens and the sense of security is always maintained.

Madhusudhan G said:   4 years ago
Why today Reliance Mukesh Ambani, kingfisher Vijay Mallya, Rajesh Exports etc. Became billionaires in a country where many people lack basic resources and die of hunger daily?

Privatization is a concept of exploiting middle class and poor people of India. They will suck the blood of the innocent like leeches. They are paid minimum wages and will be thrown out if they fail to perform at their later stages of life without providing any compensation.

From outside, people may feel like the private sector making profits. But it is at the cost of exploiting the innocent. Many people prefer to work in private sectors if they fail to get a job in PSU/Govt sector.

How are the working conditions of Reliance Oil Refineries or Jamshedpur Tata Steel plant or any private mining areas when compared to the government sector? No one cares about the worker even if he dies.

Unfortunately, The culture in PSUs is also getting degraded day by day. Public sectors reduced the recruitment of permanent workers. They also started exploiting the contract workers by giving fewer wages without any increments.

In a democratic country like India, people should realize that natural resources like oil, steel, coal etc are the assets of every individual in this nation. Ideally, the profits accrued by private PSU's should be distributed to the public in the form of dividends.

I would request the government not to privatize any PSU further. Rather try to adopt techniques to improve the working conditions which makes the employee more efficient. Govt should bring transparency and accountability in the systems. Every citizen should feel proud to be a part of a PSU employee.

Suman said:   8 years ago
Hey all,

I think its easy to say that changes should be made and all but ground reality is worse. Have you considered reason why the public sector was introduced?

The object was to maintain economic equality and equal distribution and providing opportunities to all. The purpose we elect our government is because of these reasons right? so now, if our government does not work well for us what we do, we throw them out and elect a new government but the basic process of election, the system and the functions remain same.

We expect the new government to do better for us and fulfill those reasons for which we have elected them, with their improved plans, policies and budgets. So, basically we improve when there is a problem. We cannot say that all the governments we elected have failed or are not capable so lets not have a government.

Similarly, privatization is not a solution, because the aim remains the same. I admit that private sector is active and provides best of facilities but think who all can afford those expensive facilities. We may be in good financial conditions, so we can afford but what about those who cannot imagine sending their kids to private institutions for studies in private institutes. Things will become so expensive for people who survive on the subsidies by government. There are many disadvantages.

What I suggest is government should inculcate the best features of private sector. (for which they are considered better) and implement them in public sector. It is difficult to start off with but it is not impossible.

Sagar Baroliya said:   6 years ago
Hello friends.

In my opinion, industries should be nationalised in India. As you know, our government is engaged in the task of improving the national economy. This is possible only by the planned development of various industries and services so that each complements the other.

Therefore it becomes necessary for the government to control the channels of investment. It is for this reason that during the last few decades, the government of India has established a number of industrial undertakings like the steel plants and other heavy industries. The alternative to a planned economy is the domination of the financial sector by a handful of rich houses in the country. I am sure we all are aware of the evils of capitalism, we know how vested interests can manipulate the markets and prices. In this way, it twists the arms of the popularly elected Governments and thus prevents them from taking measures designed to uplift the masses. If the government is to be responsible to the people for their welfare, then the government has to control the levers of financial power. This is possible only if controls the larger industries. Hence, I convinced that investment in the public sector is a very sound step and we should not be discouraged by the initial setbacks. It is true that the initial cost of these ventures has been high and they have presented peculiar problems but they are bound to become a source of revenue and grand national assets in the years to come.


Riya Yadav said:   1 year ago
As per my point of view, privatization is good because

1. As we talk about the education sector private institutes provide better vocational training and skills which are more valuable for the growth of the economy.

2. It should be free from political interference and help in increasing the GDP of a country. It generates more and more employment.

3. I f we take about that private company charging more price for better goods and services so for this I think in privatisation is increasing monopolistic competition as from this any firm or an individual is free to enter in the market and do a business or create more competition by selling there own differential product through this it increases the competition because of the competition is to increase the private sector companies also start providing better services in lower price.

4. In private companies the employees work more efficiently and effectively than in the public sector. Here we get jobs on the basis of technical and managerial skills we had or we are developing not only on the basis of degree or by using our source (jugaad) and all.


1. When there are high chances of monopolistic forming.
2. When profit motive can destroy an industry.
3. Where is too complex to make regulations.


1. When proper regulations are made.
2. Where to create a pressure they can't increase the price up to the limit. (Gov. ).

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