Conclusion
The Industrial Policy statement of 1991 brought about a paradigm shift in the treatment of public sector enterprises. A number of areas that were reserved exclusively for the public sector were opened to the private sector. The economic scenario in the country was also no more the same as in the early 1950s. Capital was not as scarce as before, and it was no more a case of a fledgling private sector dominated by the ‘managing agency system’. With entry allowed to private sector in areas reserved exclusively for the public sector earlier, competition in the market has intensified. This has led to higher investments and benefitted the consumers as exemplified in the telecom sector. Focus on non-financial perspectives of customer, internal processes and learning, and growth (technology) have become very decisive for ensuring healthy financial returns to CPSEs in the buyer’s market. The SOEs in China have had a role in that country’s rise as a global power. The CPSEs in India too have played an important role in the development of different sectors of the economy whether that be manufacturing, mining, services, infrastructure, or agriculture. Contribution of all the CPSEs to India’s gross domestic product (GDP) currently stands at around 6 per cent, which can go up to 10 per cent with further improvement in their performance. The MoU system in CPSEs can play a significant role in achieving this goal.
