S. MUMTAJ BEGUM, LADY DOAK COLLEGE, INDIA
Drawbacks of the undue emphasis on the public sector in the first phase of India’s economic reforms resulted in a second phase of economic reforms giving importance to privatisation and liberalisation. The development record of the last five decades shows that there can be both “Government failure” and “market failure”. Thus, while redefining the role of public sector in transition economies like India, development with economic and social justice can be attained by following the best policy of amalgamation of socialism and democracy. On the economic side, it is the mixed economy that offers bright prospects for sustainable development. Private ownership may be retained in many areas such as agriculture and certain categories of industries. The state should have an important role in huge ventures like education, nutrition, health, water, roads, communication, transport and other infrastructural services.
Keywords: Privatisation; Globalisation; Liberalisation; Public Sector; Governance; Indian Economy.