Question
Briefly discuss the problems faced by Public Sector Undertakings in India.

Answer

The various problems faced by PSUs are as follows:
  1. Underutilisation of capacity: The PSUs operate much below the optimum level of output. This inflates the costs of the goods or the services.
  2. Overstaffing: The PSUs are generally overstaffed. This further adds to the cost of the product.
  3. Unprofitable pricing: The PSUs operate with a social motive and generally provide goods and services at subsidised rates. The pricing strategy followed by them is unprofitable.
  4. Heavy losses: Because of higher burden of cost and unprofitable pricing policy, PSUs incur heavy losses.
  5. Sick units: A number of sick PSUs are operational, which prove to be a burden for the country.
  6. Lack of autonomy: PSUs are generally not allowed to act as autonomous units. This results in delay in decision-making, leading to a loss in availing business opportunities.
  7. Bureaucratic delays: The PSUs suffer from various bureaucratic delays due to red-tapism, faulty planning, procedural delays, etc.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

Highlight the salient features of India’s pre-independence occupational structure.
Differentiate between conventional and non conventional sources of energy.
What is organic farming? Explain why should we adopt it?
Read the following text carefully: Employment generation has remained one of the top challenges of Indian policymakers, and over the years, this has only become more complex. India has experienced more or less consistent growth in the structure of the output of the economy, especially after the economic reforms which is measured by gross value added. However, the trend in employment did not reveal a consistent and clear pattern.
These complexities have led to a wide variation in the conclusions drawn by experts and various studies on workforce and employm.
Two major sources of data on the workforce and employment have been the
(i) decennial population census and
(ii) nationwide quinquennial surveys on employment and unemployment by the erstwhile NSSO under the Ministry of Statistics and Programme Implementation (MoSPI), Government of India.
The nationwide Employment and Unemployment (E&U) surveys have been replaced by the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO) of MoSPI, which started in the year 2017–18.
According to NSO, the PLFS data measure the dynamics in labour force participation, workers to population ratio and the employment status along with related, important parameters for both rural and urban areas.
Labour force includes persons who were either working (or employed) or those available for work (or unemployed). Some persons in the labour force are abstained from work for various reasons. Deducting that number from the labour force gives the number of actual workers. These workers are further categorised as persons who are engaged in any economic activity as selfemployed or regular wage/salaried and casual labour. The difference between the labour force and the workforce gives the number of unemployed persons.
The size of the labour force in the country has increased from 485.3 million in the year 2017–18 to 497.4 million in the year 2018–19. The next year, the labour force increased by 8 per cent and reached 537.9 million. This increase was witnessed across male and female populations as well as rural and urban households.
On the basis of the given text and common understanding, answer the following questions:
(i) State any two major sources of data on the workforce and employment.
(ii) ‘The labour force encompasses a broader category than the workforce.’ Defend or refute the statement, giving valid reasons in support of your answer.
(iii) ‘Workers can be categorized into different types depending on their status.’ In the light of the given statement, state any one type of employment.
i. What is organic farming and how does it promote sustainable development?
ii. Classify rural credit in different categories on the basis of time period.
Match the following:
1.
Prime Minister
A.
Seeds that give large proportion of output.
2.
Gross Domestic Product
B.
Quantity of goods that can be imported.
3.
Quota
C.
Chairperson of the planning commission.
4.
Land Reforms
D.
The money value of all the final goods and services produced within the economy in one year.
5.
HYV Seeds
E.
Improvements in the field of agriculture to increase its productivity.
6.
Subsidy
F.
The monetary assistance given by government for production activities.
  1. Name atleast six parameters of Human Development.
  2. Explain atleast three areas where India and Pakistan both have achieved success.
Explain four sources of human capital formation.
OR
Explain the main sources of human capital formation.
Explain 'Growth, Equity and Self-reliance' as long-term objectives of planning.
How will you know whether a worker is working in the informal sector?