Privatization and Public Sector Sustainability

Abstract

Privatization seems to be the current trend for most of the public sector institutions that are loss-making and a burden for the government. In fact, public sector institutions work for public welfare and not for making profits. This was proved during the pandemic period that most of the government hospitals were active in treatment given to COVID-19 patients unlike private hospitals focusing on profits. Therefore, privatization cannot be the right solution for underperforming public sector enterprises. There needs to be a partnership forged between the public and private sectors or contracting out public sector work to private institutions. This chapter focuses on privatization and public sector sustainability in the Indian context.