Role of the private sector and inclusive growth in an emerging economy : the indian scenario

Abstract EN

The present paper attempts to analyze pattern of privatization in the Indian economy since its political independence.

It is interesting to note that this second most populous economy of the world started with mixed economy where non-agricultural organized sector was tilted initially in favor of the public sector.

The economy has moved to what is now mainly market economy in a gradual manner.

Before undertaking economic reforms and rapid privatization in the early 1990s, the Indian economy has provided a congenial atmosphere like self-sufficiency in food supply, increased savings and investments, improved human development, infrastructure, etc for privatization.

Privatization in India has been helpful in raising economic growth but it appears it is not able to contain challenges like unemployment and regional inequalities.

Fiscal discipline, governance and better human development with well functioning institutions become helpful in the expansion of privatization and economic development.