Solution

Lack of proper planning and mismanagement led to the wastage of resources and also monetary loss in the form of revenue by the PSUs. Still, they are having some benefits which are as follows:

1. The main purpose of PSU is to provide goods and services which are useful for society and help in the country’s welfare in addition to paving the path for economic development. For instance, schools, hospitals etc..

2. Projects that require high investment and long gestation periods are not undertaken by any private companies. Hence, PSUs are the best choice for such projects.

3. Public sectors form the basic framework of the nation with respect to industrialization, which will provide assistance to private firms at the next stage of industrialization.

4. India followed a socialistic government that allowed for equal rights for everyone, therefore government-controlled businesses will be leading to economic growth. PSU will produce goods as per the social needs of the country.

5. Inequalities in income will lead to a higher standard of living, and eradicate the existing poverty, therefore the government should invest in the PSU.