GD Topic - Should the Public Sector be privatized?

Published in Group Discussion (GD) Topics with Answers category by MBA Skool Team

6 people are having a discussion on the topic (Nehal, Darshi, Hien, Subham, Mani and Karan)

Category: Business

Group Discussion Starts

Nehal: Hello, I am Nehal and as per my point of view Public Sectors should not be privatized. It is not good for our Country and it leads to unfavourable conditions. Hence I am against Privatization of Public Sector Undertaking.

Darshi: I think privatisation should be there of public sector because as we know public sector is lagging in overall development due to better management and efficient resources. These can be made available only by private sector.

Karan: I totally agree with view point of Neha. If any government company is not functioning well then privatization is not the solution, government need to overhaul the government body.

Nehal: Private companies do not care about the society and their main motive is to earn profits, which is with contrast to government companies which keeps doing social work and therefore if privatization happens it will result in fewer funds for society because private companies have no obligation to do social work.


Hien: I think privatization of public sector is a must in order to ensure that the work is carried out efficiently because employees of the public sector have very secured jobs and due to this fact they take it lightly as to whether they are carrying out their tasks efficiently or not. In contrasts to this in the private sector, employees put in more effort in the tasks given to them because such job security does not exits.

Subham: Privatization also affects the employees because in private sector enterprises there is emphasis on performance which indirectly results in work pressure and meeting deadlines or targets and individuals who have been doing work for years without much pressure find it difficult to adjust to new setting and many end up resigning from their service.

Mani: In my opinion for our economy, The Mixed is best one, where both private and public sectors are parallel players. It gives consumers a large vivid options to get served as per his own needs. For eg, in telecom sector, we have large number of options, if you priority is low cost go for BSNL, if your priority is fast services go for rest of networks.

Hien: But Air India is a govt. run air service which is running on a loss!!

Nehal:  Air India has made profit in fiscal year 2015-16 due to lower fuel prices and improved operational performance and this profit would increase further in future years. Aircraft availability, increased cabin power and aggressive marketing are some other reasons the airline's financials are improving.

Mani: But the government sector needs bit of privatisation. The concept of public private partnership is an efficient option to look upon. We have evident examples of successful Public Private Partnership in electricity board in few of the states.  In order to meet with the ever-increasing gap between the electricity demand and actual generation, Government of India has endeavoured to attract private sector participation in Generation, Transmission and Distribution.

Darshi: Yes, Public-Private model is the best model for our economy. The public-private partnership in health sector has also contributed a lot towards improvement in the health of the population. Yeshasvini Health scheme in Karnataka is one example of public-private partnership.

Nehal: Yes, public-private partnership is a good model over complete privatization. It will help to serve the customer in a better way with improved efficiency and updated technology in place.


To sum up the discussion, we all consider Public-Private Partnership as the best model for the economy of our country. There are many sector where private investment becomes must like electricity, telecom, coal mines, etc. Private sector participation can lead to better conditions and more efficiency. Government need to overhaul the government body. Overhauling include selling half share of the company in private hand, end corruption, choose best talent for the company, tighten guideline for the company, use latest technology, improve service.

Facts related to the topic

1. Tata Power is India's largest integrated private sector power utility with an installed generation capacity of over 3120 MW.
2. The Company has successful public-private partnerships.
3. Partnerships give many children better educational opportunities.
4. Govt. can support its campaign Make in India and invite private investment instead of shutting down HMT watches which is running on losses.
5. Indian railways to set up 400 model stations under public- private partnership mode. a joint venture company will be set up between the Central and State Governments for implementation of the project.
6. Government is looking for ways to revive sick units like Bsnl, MTNL, Air India through capital infusion, joint ventures and by bringing in new management.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse various similar group discussion topics. The Group Discussion section covers more than 100 topics.

Continue Reading :