India is among the top eight countries in the world with a large number of Public Sector Enterprises (PSE) that play a key role in economic development of the country. At the same time, several PSEs are loss-making units and are plagued by operational inefficiencies. This has vigorously pushed the government to privatise the PSEs. In this context, this paper examines the causes for privatisation of PSEs in India and also provides suggestions on how to prioritize and address them. It also tries to analyse the impact of privatisation of PSEs on the economy and its consequences on its employees. The paper calls for further research on the privatisation of Salem Steel Plant which is a special unit of Steel Authority of India Ltd. based on the opinion of its employees.
