Privatization of state owned organizations is now on the way in almost all the South Asian countries. As a part of economic reform, Indian government has been carrying out privatization for more than one decade. However, now, Indian Prime Minister Manmohan Singh had to postpone all activities related to privatizations after a coalition partner threatened to go out of the government over the issue. Since, Manmohan Singh needs the support of that party for survival, his hands are tied. The investors in the share market did not take this matter happily and the index fell.
Privatization of state enterprises is needed because of the fact that many of these state owned organizations are incurring huge losses and are a burden on the government. On the other hand, those who work in these organizations feel that privatization will only endanger their jobs and they would suffer with their families.
So, what next? This is a tough question to answer. Privatization will surely restart again sooner or later but it is important that the political parties in India can build some kind of consensus about it.
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