Privatization and India"s economic reforms

The fiscal deficit, it is concluded, has been exacerbated by the continual growth and inefficiency of India"s public sector enterprises. In the aggregate, rates of return on investments to public sector enterprises have been negative. This paper examines how a program of privatization of India"s public sector enterprises can serve to redress the fiscal imbalance in the country. The paper concludes that a comprehensive privatization program could seriously reduce the strain on government revenues, as well as contribute to improved efficiency and competition in the economy. Includes references. (Author abstract)