Question

Appraise the Navratna policy adopted by the Government of India in the reforms of 1991.

Hint:

The Navratna policy made key PSEs financially autonomous to compete effectively in a liberalised economy.

Answer 1

The Navratna policy was established to grant enhanced autonomy to selected Public Sector Enterprises (PSEs), enabling them to compete globally. Key features include:
Recognition of high-performing PSEs with 'Navratna' status.
These entities received greater operational and financial freedom in areas such as investment decisions, joint ventures, and human resource management.
The objective was to boost efficiency, competitiveness, and profitability within public enterprises.