Success and Failure of Indian CPSEs An analytical approach with special emphasis on Manufacturing Sector

Abstract

The major objectives of setting up public sectors in India were to speed up the economic growth of core sectors of the country, to support the equipment requirements of strategically important sectors, and to generate employment opportunities. These objectives could be achieved to a very great extent. newlineDuring 2014-15, there were 235 CPSEs in operation and 76 of them (about 1/3) were newlineloss-making firms. Through analyzing the performance of different CPSEs, organizations that were continuously producing losses could be identified and the reasons behind the same too. Similarly, when the performance of successful organizations was studied, the factors which led to their excellent or good performance could be listed. Consolidation of these factors, understanding and defining them, exploring the influence of each factor, estimating their relative contribution or significance through a statistical process - this is the problem identified and addressed in this research work. newlineThis research study commenced with the study of success and failure stories of different organizations, both in the public sector and the private sector. Then, twenty six CPSEs under the manufacturing sector, spread over the length and breadth of the country, each belonging to different cognate groups, were selected for detailed study and analysis based on their performance on various parameters. For assessing the factors which had led to the success or failure, direct interviews were conducted with executives and employees of these organizations, and facts collected were segregated based on which certain questionnaire was prepared, and the second round of primary data was collected to prioritize the factors behind the success or failure of these CPSEs. newlineData collected were analyzed and the significance of various factors affecting the success and failure of Indian CPSEs were computed based on statistical terms. Observations were further explored and investigated using statistical tools to gain maximum insight into the data collected, and for once aga