nd str and n rastr t re 9.13
providing healthcare to the masses.37 In the in India is seen connected to three major inter-
coming times, the government went from one to related areas, namely—
another generations of the reforms, setting new (i) A tool of public sector reforms40
targets and every time trying to make reforms (ii) A part of the economic reforms started
socio-politically possible. in mid-1991. It has to be done as
Reforms with the human face was one a complementary part of the ‘de-
such attempt of the United Progressive Alliance reservation of industries’.41
in 2003 when it formed the government at the (iii) Initially motivated by the need to raise
Centre. It was believed that the ‘India Shining’ resources for budgetary allocations.42
slogan of the outgoing government (i.e., the
The approach towards public sector reforms
NDA) was correct, but remained localised in its
in India has been much more cautious than that
effects to the urban middle class only.38 The new
of the other developing countries. India did not
government seemed taking lessons from the past
follow the radical solution to it—under which
and tried to make India shine for the rural masses,
outright privatisation of commercially viable
too. Its one programme, the Bharat Nirman (a
PSUs is done and the unviable ones are completely
rural infrastructure focused programme), could be
seen as a political attempt to make it happen.39
Only the coming times will tell as to what
extent the government has been able to educate . Publication Division, India 1991 ew elhi
overnment of ndia, .
the masses (better say the voters who vote!) the
41. The de-reservation of industries had allowed the
needful logic of the reforms. private sector to enter the areas hitherto reserved for
the Central overnment. t means in the coming times
dIsInvestment in the unreserved areas the S s were going to face
the international class competitiveness posed by the
new private companies. To face up the challenges
Disinvestment is a process of selling government
the existing S s needed new ind of technological,
equities in public sector enterprises. Disinvestment managerial and mar eting strategies similar to the
private companies). For all such preparations there
37. First of the series of such suggestions came from Sach, was a requirement of huge capital. The government
Varshney and Bajpai, India in the Era of Economic thought to partly fund the required capital out of the
Reforms, p. 24). proceeds of disinvestment of the S s. n this way
38. It should be noted that ‘reform with the human disinvestment should be viewed in India as a way of
face’ was not a new slogan or call given y the A increasing investment in the divested S s which we
overnment ut this was the same slogan with which see taking place in the cases of BALCO, VSNL, etc.).
the reform programme was launched by the Rao- 42. Right since 1991 when disinvestment began,
anmohan overnment in it has only een governments have been using the disinvestment
‘re-called back’ by the new government with a new proceeds to manage fiscal deficits in the budget at
committment to live it up. least up to . rom to some
39. Point should be noted that Bharat Niraman has been the of the proceeds went for some social sector reforms
only time-bound programme of infrastructure building or for la our security. After ndia esta lished
in rural areas which is supposed to be completed within National Investment Fund to which the proceeds of
four years the time left out of the total term of the disinvestment automatically ow and is not regarded as
overnment when the programme was launched . he a capital receipt of the nion overnment. his idea of
A naturally, tries to ma e it a political statement and Indian experiment with disinvestment was articulated
a point for the next eneral lections development by Sach, Varshney and Bajpai, India in the Era of
becoming an issue of real politics. Economic Reforms, pp. .