Public sector units or PSU’s, as they are commonly known as, form the very backbone of the Indian economy and are essential for its development. Apart from contributing to a major part of the country’s gross domestic product (GDP), they also help in generating employment for the masses and account for tax collections as well. The public sector industries cover a wide variety of activities and products, including manufacturing, oil, steel, power, engineering and construction, chemicals, telecommunication, travel and tourism, and so on. All public sector undertakings basically operate under five main divisions. These are agriculture, manufacturing, mining, power supply and services. With the opening up of the country’s economy, many public sector units have opted for mergers and acquisitions, and have become more receptive to foreign players in their respective sectors. At the same time, the public sector suffers from a number of chronic problems such as bureaucracy, red tapism, management inefficiency, administered pricing and a marked tendency towards risk aversion. Hide this