Question

Navratna policy has facilitated the maintenance, promotion, and disinvestment of Public Sector Undertakings (PSUs). Justify the given statement with a valid explanation.

Answer 1

The Indian Government enacted the Navratna Policy to grant enhanced financial and operational independence to prominent Public Sector Undertakings (PSUs).

Reasons:
1. Enhanced Operational Autonomy:
 - Navratna status empowers PSUs with expanded decision-making authority, enabling them to compete effectively against private sector firms both within India and internationally. 

2. Promoting Disinvestment and Productivity:
- The policy has fostered disinvestment, permitting partial privatization and thus alleviating the fiscal pressure on the government.
- It has contributed to PSUs achieving self-sufficiency and increased competitiveness on a global scale. 

Summary: The Navratna policy has been instrumental in reinforcing India's public sector entities, affording them increased autonomy while simultaneously promoting efficiency and partial privatization.