Welcome to our comprehensive exploration of the Public Administration optional topic for UPSC Mains – a critical subject that has consistently played a pivotal role in shaping India’s administrative landscape. In this series, we delve into the Wise Previous Year Questions specifically focusing on Public Sector Undertakings (PSUs) from the years 2013 to 2023. Aspiring civil servants often find themselves navigating the intricate realm of public administration, and understanding the dynamics of PSUs becomes imperative as they form a crucial component of the country’s economic framework. Through an in-depth analysis of past questions, aspirants can gain valuable insights into the evolving trends, key concepts, and the nuanced approach required to tackle this section effectively. Join us on this educational journey as we decipher the intricacies of PSUs in the context of UPSC Mains, empowering you with the knowledge and confidence needed to excel in this optional paper.
The evolution of Public Sector Undertakings in India has been a testament to the country’s economic progress and administrative evolution. As we embark on this exploration of UPSC Mains’ Public Administration optional topic, we not only dissect the questions posed over the past decade but also unravel the multifaceted dimensions of PSUs in the Indian context. From the economic reforms of the 1990s to the contemporary challenges faced by these entities, each question serves as a window into the dynamic landscape of public administration. Our blog series aims to equip UPSC aspirants with a comprehensive understanding of the nuances associated with PSUs, ranging from their structure and functioning to the policy interventions that have shaped their trajectory. As you navigate through the intricacies of these questions, you’ll not only enhance your knowledge base but also refine your analytical skills, providing a solid foundation for success in the UPSC Mains examination.
Public Sector Undertakings – Public Administration – Previous Year Questions (UPSC CSE Mains Psychology Optional)
Public sector in modern India
1. “The size of the leviathan goes on expanding, despite the country’s recent commitment to downsizing or rightsizing.” Comment. (2003)
2. “The steady expansion and the gradual decline of the public sector has been one in postIndependence India.” Discuss this statement and suggest measures to arrest the decline of the public sector in India. (2003)
3. “Indian public enterprises are neither adequately ‘public’ nor truly ‘enterprising’.” Comment. (1998)
4. “The public sector has to grow. It has a strategic importance.” Comment. (1994)
5. ‘With the fall of the Soviet System, the fervor socialist administration has declined. Examine the statement in the light of recent policy decisions in the Government of India with regard to public undertakings. (1992)
6. Public Undertakings of the Central Government could be booked upon both as an asset and a liability. Which measures would you suggest to enhance their utility as an asset and to reduce their drag as a liability? Examine in depth the working of one central public undertaking in this context. (1990)
7. ‘Pricing Polity for Products and Services have to be different for monopolistic, semi-monopolistic and competitive kinds of Public Enterprise. A policy of No Profit, No Loss cannot be recommended as the long-term goal or as a permanent policy for most State Undertakings in India.’ Comment. (1989)
8. “The development of the Joint Sector, the availability of organised trade unions and the entry of the Public Sector into low Social priority areas have rendered the administration of public enterprises politically unaccountable, managerially ineffective and financially non-viable.” Comment. (1988)
Forms of PSUs
1. Can the holding company’s structure act as an institutional change to add to efficiency? Give your answer with appropriate illustrations. (2011)
2. “The Public Corporations in India are like exhausted Leviathans.” Comment. (1999)
3. “The departmental public undertakings have necessarily been placed under the full control of the Government and Parliament.” Comment. (1995)
4. ‘The company form of organization in public sector is said to be a fraud on the principle of parliamentary accountability. Yet it is the most popular enterprise in the field of public sector organization in India.’ Comment. (1991)
Problems of autonomy, accountability and control
1. “Contracting out tasks without effective accountability mechanisms can be counter-productive for effective service delivery.” Comment. (2018)
2. Explain fully how a balance can be struck between autonomy and accountability of India’s public enterprises. (2015)
3. Argue the case for and against creating Indian Public Enterprises and Industrial Service for boosting the moribund public sector in India. (2015)
4. “Public sector undertakings must learn to survive and be entrepreneurial, without assured government budgetary support.” In the light of this statement give your suggestions for strengthening their autonomy and reviving the health of sick Public Sector Undertakings. (2014)
5. “Autonomy to public sector undertakings is a myth.” Analyse in the context of the use of government expenditures by politicians who control governments at different levels. (2013)
6. Is it correct to state that “one of the major reasons for the failure of many …… Public sector undertakings was due to departures from the original concept of autonomy”? (2010)
7. “The blame for our poor public sector performance can be laid on the way our bureaucracy is structured.” Comment. (2007)
8. “Public undertakings on longer occupy ‘commanding heights’.” Comment. (2002)
9. ‘The poor performance of Public Undertakings in the Core Sectors of Indian economy has sparked off problems of political accountability and labour participation in management.’ Comment. (1987)
Impact of liberalization and privatization
1. Following the onset of globalisation, the traditional bureaucratic model appears to have lost its significance. Comment. (2022)
2. “The New Economic Reforms during the past three decades have not only reduced the scope of industrial licensing and areas reserved exclusively for Public Sector but also infringed the autonomy of existing public sector undertakings”. Examine. (2022)
3. The government policy of largescale privatization of the key sectors of the economy may affect India’s economic health. Comment. (2021)
4. Does the privatization of key public sector bodies augur well for welfarism in India? Discuss with suitable illustrations. (2020)
5. Public Sector Undertakings were expected to take the Indian economy to the ‘commanding heights’, instead the successive governments have been pushing for disinvestment. Critically examine how the scenario has changed over the years. (2019)
6. “The market-driven profitability concerns have shaken the foundation of the public sector undertakings.” Do you agree? Give reasons. (2018)
7. “Public Sector Undertakings (PSUs) in India face tough competition from the private enterprises and Multi-National Corporations (MNCs).” Explain. (2017)
8. Evaluate the performance and efficacy of the Maharatna, Navratna and Miniratna type of Public Sector Undertakings in the context of Liberalization, Privatization and Globalization (LPG). (2016)
9. “’Memorandum of Understanding’ scheme between the Government and Public enterprises has forced public undertakings to improve their overall performance.” Do you agree with this statement? (2012)
10. “Memorandum of understanding scheme’ between government and public enterprise has forced public undertakings to improve the overall performance.” Comment. (2007)
11. “In the context of liberalisation the role of Public Sector and its welfarist approach is being drastically changed.” Elucidate. (2004)
12. “The role of public sector has been changing tremendously in the context of liberalisation.” Comment. (2002)
13. “Despite liberalization, privatization and globalization of economy, the public sector has its own relevance for India.” Discuss the functions and role of public sector in the new economic scenario and the changes that they need to bring about in them. (2001)
14. Do you agree that globalization, liberalization and privatization policies are going to change the very fabric of Indian Administration? What, according to you, are the major challenges before it in the 21st century? (2000)
15. Discuss the major problems of management and working of Public Sector Undertakings in India. Give suggestions in the light of liberalization policy to improve their performance. (2000)
Frequently Asked Questions (FAQs)
Q: What is a Public Sector Undertaking (PSU)?
A Public Sector Undertaking, commonly known as a PSU, refers to a government-owned corporation or company in which the government holds a majority stake (usually more than 50%). These entities play a significant role in the economic development of a country and often operate in strategic sectors such as energy, telecommunications, and infrastructure.
Q: How are Public Sector Undertakings different from Private Sector Companies?
The primary distinction lies in ownership and control. In PSUs, the government or its agencies hold a major share, influencing decision-making and strategic direction. Private sector companies, on the other hand, are owned and operated by private individuals or entities, with decisions driven by profit motives and market dynamics.
Q: What is the significance of Public Sector Undertakings in India’s Economy?
PSUs have historically been instrumental in driving economic growth and development in India. They contribute significantly to employment generation, infrastructure development, and the overall well-being of the nation. Understanding their role is crucial for aspirants preparing for competitive exams like UPSC, as questions related to PSUs frequently appear in various examinations.
Q: How have Economic Reforms impacted Public Sector Undertakings in India?
The economic reforms initiated in the 1990s had a profound impact on PSUs. Liberalization, privatization, and globalization led to changes in their management, functioning, and competitive landscape. As a result, understanding the post-reform scenario and the challenges faced by PSUs is essential for those aspiring to comprehend the contemporary economic environment.
Q: What are the major challenges faced by Public Sector Undertakings today?
Public Sector Undertakings in India confront various challenges, including bureaucratic interference, financial inefficiencies, and adapting to a rapidly changing global economic scenario. Additionally, increased competition from the private sector and the need for modernization pose significant hurdles. An understanding of these challenges is crucial for policymakers, business professionals, and aspirants preparing for examinations involving public administration and economic policies.
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