Is PM Modi selling the country?
Is anyone capable of selling India? Why we are worried that PM Modi is selling every piece of India.
But in the present business scenario selling is not a bad word all over the world. In business front, it was a slogan continuously
1. Sell it before you make it
It means before your product is finished it must be sold. And, produce only this much which is consumed.
Example: Contract firming. Before you sow the seeds your produced is sold.
2. If you can sell it, don’t make it
Examples. Flipkart and amazon do not produce anything. They only sell.
Uber and Ola do not have their own fleet of vehicles but gives vehicle services all over the world.
Apple does not produce any smartphones but sells it all over the world in its brand name. There is an innumerable example of selling without making it.
Why we are worried? Why do we feel that Modi is selling everything?
Yes, we are worried and we have the right to be worried. Obviously, after being ruled by the East India Company over two hundred years, we have the right to be cautious.
We have seen the plight of privation in the Medical sector and in the education sector. Nursing home and private hospital are looting money from the patients. The private schools are extracting money in the name of good and quality education. We have seen the monopoly of private sectors in telecom industries.
Guidelines for Privatisation
There must be a guideline which Industries can be opened by the private persons and workforce required to run the business.
The central government does not want to be in the business of business, other than in specific strategic sectors. This is the most important reason for disinvestment.
The Modi government would seek to control only a few sectors like coal, banking, transportation and infrastructures. Other industries would be free from goverment control.
Types of Private Sector we need
We need industries which will give a huge number of job to our unskilled workers. We need industries which will benefit our farmers. The industry which will consume our second-grade engineers those have passed but unemployable due to their poor skill in their core subject.
We should not encourage industry which required our Doctors as we have already a shortage of medical fraternity. Our need is private industries which will boost local production.
We need more of Government hospitals, government schools, railway and government-owned banks.
Public Sectors Vs Private Sectors
In general, public sector units can not compare with private sectors. The main motive of the Public sector is to provide services to the public. Whereas, the motive of Private sectors is to earn maximum profit.
Private sectors are also dependent on the public sector to provide education, health care and infrastructure.
Modi Government’s Policy on Privatisation
In the past, disinvestment was part of the budgetary exercise. The goverment would like to get rid of loss-making public sectors. Repeated efforts of selling Air India, which is most loss-making among all public sectors, has been failed wants of the buyer. The Central Government in the past was only concerned about loss-making public enterprises but, was no problems with the profit-making public enterprises to compete with private sectors.
Now, the government has made it clear that it has no general role in running the business. The government’s participation in business will be an exception, not a general role.
Benefits of Policy Shift
With the goverment out of the business of business, the private sectors will be more confident about doing business. There will not be any competitor who is accessible to unlimited capital. This will increase the efficiency and confident of doing the business.
Private companies face unfair competition from the presence of PSUs. Where access to capital is unlimited and pricing is lower as there is no profit motive. All private airlines in India have to compete with Air India that has accumulated losses of Rs 70,000 crore and outstanding debt of Rs 58,000 crore. Jet Airways, however, went out of business with less than half the size of that debt, at Rs 25,000 crore.
Privatisation is not revenue generation
Privatisation of PSUs should not be viewed as a revenue generation exercise. The Modi government’s policy should be the use of resources for more productive use.
The private sector is the engine of growth. Private sectors drive growth, create jobs and pay the taxes that finance services and investment. Private companies are providing an ever-increasing share of essential services in developing countries, such as banking, telecommunications, health and education.