Should public sector be Privatised in India?

Privatisation always helps in keeping the consumer needs uppermost, it helps the governments pay their debts, it helps in increasing long-term jobs and promotes competitive efficiency and open market economy.

Why we need public sector banks?

In India, banks have played an important role in economic growth and development. Since the 1970s, public sector banks (PSBs) have been in the forefront of mobilizing resources from far flung rural areas as well as extending banking services in the remotest parts of the country.

Why does India need public sector banks?

As the importance of the financial sector in the economy grows, it is important to have strong PSBs that have a public purpose to act as a countervailing power to the PvtSBs which are now growing in size every year.

What is the difference between public sector and private sector banks?

The private sector banks have succeeded due to their aggressive marketing strategies and have capital to spend, whereas public sectors banks are unable to attract customers. In the rural areas only the public sector banks provide the services.

Why are public sector banks (PSBs) being hit by nationalization?

Nationalization has made these banks more prone to political interference as politicians used them for poverty alleviation schemes that can help them win votes. PSBs have also been hurt by the more tech-savvy private banks that are now capturing a bigger share of the deposits. Check the difference of NPAs between PSBs and Private banks.

Why public sector banks are losing market share in India?

The Public Sector banks have been losing market share because of their lower efficiency levels and lack of innovation, whereas the private sector banks are gaining. Thus the government should consider lowering its ownership and encouraging privatization. Also Read : Why Indian PSUs are in losses?

What are the benefits of privatization in India?

In a country like India, Privatization in today’s concept is seen as a means of increasing output, improving quality, reducing unit costs, curbing public spending and raising cash to reduce public debt. Group Discussion (GD) is widely used for Admissions to top MBA colleges, Job interviews, and other selection process.