Do you think the navratna policy of the government helps in improving the performance of public sector undertakings in India How Economics CBSE class 11 ncert

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Do you think the navratna policy of the government helps in improving the performance of public sector undertakings in India? How? -Economics CBSE class 11 ncert

Book: Indian Economic Development
Chapter 3: Liberalism, Privitisation and Globalisation: An appraisal
 (NCERT textbook questions)


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The government gave navratna status to nine industries for substantial autonomy in its functioning. These are
Bharat Heavy Electricals Limited
Videsh Sanchar Nigam Limited
Indian Oil Corporation
Bharat Petroleum Corporation Limited
Steel Authority of India Limited
Indian Petrochemicals Corporation Limited
National Thermal Power Corporation Limited
Hindustan Petroleum Corporation Limited
Oil and Natural Gas Corporation
Later, this status was further extended to two more industries such as Mahanagar Telephone Nigam Limited and Indian Oil Limited. In 2009, the government declared maharatna and miniratna status to some industries to enhance efficiency and profitability.
Under the navratna policy, the government of India provided special treatment and positively affected the performance of these units. These units were given operational and managerial autonomy to run their businesses effectively and efficiently. Some of the navratna industries were major players in the global market. They produced goods at cheaper cost. These enterprises not only served as an important source of employment but also formed an infrastructural base which induced private investment in a wide range of areas of industrial growth. Thus, the navratna policy of the government has definitely contributed to the development of public sector undertakings in India.


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