It’s time to take a relook at privatization

What the editorial is about?

The need for privatization as a policy in India needs a relook.

Context:

Amid the consensus that privatization is the panacea and policymakers often cite the private sector’s ability to grow faster, studies indicate that the gap in growth (and service) between public sector undertakings (PSUs) with autonomy and private firms is not significant.

The reality of privatization

• There is a consensus that privatization is the panacea. Policymakers often cite the private sector’s ability to grow faster. This may not always be true — studies indicate that the gap in growth (and service) between public sector undertakings (PSUs) with autonomy and private firms is not significant.
• One study highlighted that the famed British privatization initiative of British Airways, British Gas, and the Railways led to no systemi