The public sector, over the last seventy years, has traversed a long journey—from Jawaharlal Nehru declaring that ‘gradually the public sector will grow both absolutely and relatively, and the whole economy of the country will be controlled by it’…to the Modi government mandating in February 2021, that the entire public sector…will be privatized or merged or closed.

Under the various prime ministers since Independence, India’s public sector, which was once seen as the backbone of the economy, became mired in inefficiency, transforming from a source of pride to a burden on the national exchequer. From mass adulation to disinvestment and privatization, the public sector’s journey has been anything but smooth. This book delves into the complex web of economic and political forces that have shaped its course.

The author traces this evolution, highlighting the role of successive central governments to explain the current push for privatization. She begins with Nehru’s vision of a revenue-generating and profit-making bulwark of the economy, which started to weaken during the Shastri years. Moving through the decades, she examines the nationalization spree under Indira Gandhi, her subsequent rightward shift, and the liberalization push under Rajiv Gandhi. The pivotal 1991 Industrial Policy Resolution under Narasimha Rao, which aimed to make PSUs ‘more growth oriented’ and ’technically dynamic’, set the stage for large-scale disinvestment under Vajpayee. The author also explores the contrasting approaches of Manmohan Singh’s welfare-oriented privatization policies and the far more aggressive reforms pursued by Modi.

Sheela Dubey outlines the successes, missed opportunities and key policy shifts simply and without the hyperbole that often accompanies any discussion of state-run institutions. Framing daunting subject matter into a compelling, highly readable account, she has written the perfect primer for making sense of India’s public sector saga.