Why privatisation is not the 'panacea' in relation with a country like India?~An Analysis

Why privatisation is not the 'panacea' in relation with a country like India?~An analysis


Some are of the view that privatisation is the need of the hour. Some are against it. Some give the example of foreign countries to prove their view that privatisation is must for the development of a country. 

Let's look privatization through the lens of Indian perspective. 


India is a developing country. According to recent reports,  Out of the total population living in the rural parts of India, 25.7% is living below the poverty line whereas in the urban areas, the situation is a bit better with 13.7% of the population living below the poverty line. 


The country where more than a quarter of the population living in rural areas  is below the poverty line, privatisation will just deteriorate the situation. Privatisation will definitely improve infrastructures and services but the cost of which will have to be beared by the people of the country. As per authentic data, income inequality is huge in India. Privatisation will just widen the difference between poor and rich which is something our constitution forefathers always wanted to lessen. 

As per constitutional point of view, India is a welfare state. Directive principles of state policy enshrined in part IV of the constitution emphasises to remove income disparities among people of India. Privatisation in no way is going to be of any help regarding this.


Let's take the example of Indian Railways.  Some stations are being privatised. Railway is called the lifeline of our country. 

More than 23 millions passengers travel every day from Railway. For thousands of students, it is the means for education and for daily passengers, it is the medium for their livelihood. Let's analyse now that what will happened if railways will be privatised. If railways are privatized then the daily passengers, service persons and students will have to pay much extra than what they used to pay. This will increase their expenses. Also the prices of goods transported through railways will increase by leaps and bounds  and hence  per capita income will fall drastically. A developing country like India will remain underdeveloped.


So what is the solution? 


The solution is very simple. Modi jee has coined it time and again, "minimum government, maximum governance."

The need of the hour is to empower our public sector. Accountability in each stage needs to be fixed which will ultimately improve public services. Transparency needs to be incorporated.(Faceless assessment scheme Incorporated in IT Department is the latest example of how we can bring transparency in departments.) The performance of government officials needs to be genuinely evaluated and the perks and salary should be increased as per the performance. Top performer should be appreciated just like private company recognises.

Executive being part of the goverment acts as per the constitution. So it is their moral and constitutional obligation to do welfare of their people. Legislature makes them accountable. Judiciary is also there to assure that they act in purview of the Constitution. But private companies are not bound by constitution. They simply want to gain more and more. Although they provide good service but it doesn't mean that public sectors can't provide what private companies provide.


In a nutshell, Overhauling of public services is the need of the hour to make our country a developed country.


P.S.- avoid grammatical mistakes, if any.

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