Don’t disinvest, privatise

For many years in the 1980s, the relevance of public enterprises to India’s economy was debated. It was recognised that in the early years after Independence, the private sector was unable to raise the needed resources to invest in plants to make iron and steel, heavy machinery, machine tools and railway wagons or to build large dams, power plants for generation, transmission and distribution, etc. Only the government could raise such resources in India and overseas. This also extended to airlines, airports, luxury hotels, etc. By 1980-81, the Indian savings rate had gone up to 18.4% as had the capacity to attract foreign investment.

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