Topic: Effects of liberalization on the economy
5. Privatisation of Public Sector Undertakings (PSUs) can bring about positive changes such as efficiency gains and innovation, but it is not a one-size-fits-all solution. Examine. (250 words)
Difficulty level: Tough
Reference: Indian Express
Why the question:
Amid calls for aggressive privatisation—a policy that the present government has very much pursued—an advice to go slow on privatisation of PSU banks comes as a surprise, if not anything more.
Key Demand of the question:
To write about pros and cons of the complete privatisation of public sector banks (PSBs).
Directive word:
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Begin by stating objectives of privatisation.
Body:
First, write about the positive role played by PSUs in the Indian economy.
Next, write about the various issues plaguing the PSUs. Cite statistics to substantiate.
Next, write about positives of complete privatisation of PSUs.
Next, write about the negatives of complete privatisation of PSUs.
Conclusion:
Conclude by writing a balanced opinion for way ahead.
