Introduction

Privatization is the transfer from government to private ownership of property or businesses. Deregulation is also used to describe the situation where a company has already been in the private security sector, but the regulations have become more relaxed. This also refers to when a private entity has been regulated through government programs and schemes. It is optional that the company be part of the public sector.

India made a significant change to its economic ideology in 1991. Our finance minister, Mr. Man Mohan Singh, made substantial economic changes during that period. The finance minister changes the economic policies because of the current financial crisis. They changed the fiscal policy and devalued money by 20% to make the trade more competitive. Privatization can also reduce government interference in business. Privatization also allows private companies to participate in the democratic competition of economics.

With the help of FDI, the government wants to strengthen the country’s financial position. Also, they wanted to increase the efficiency of the public sector. They also wanted to improve the efficiency of the public sector. The government wanted to increase the opportunities for the market by using it.

The market will then demand and supply goods following the market’s requirements, increasing revenue. They wanted to create an environment that was conducive to rapid industrialization. It also opens up foreign investment possibilities. Privatization can be done in many ways: [1]

The government has withdrawn from ownership and management of Public Sector companies.

The sale of all public sector companies.

The public sale of Shares

Public Auction

Public tender

Direct negotiations

Transfer control of businesses that are controlled by the government or municipalities.

Lease with right of purchase.

India should privatize many fields. The most important is to provide a higher quality service at a lower cost. Privatization also increases productivity because private companies focus more on profit than the government. Privatization will reduce corruption and remove political interference previously made in the government-owned subsidiary.

Privatization increases competition and improves the quality of products. Privatization does not mean the government can’t control the companies’ decisions. The government could quickly implement a policy that requires every company to ask permission before making any decisions.

Privatization will lead to the division of a giant company into smaller companies, which will improve the quality. They will also be able to handle any minor problems that may arise and will find the best solution. To achieve these goals, privatization is needed in many areas, including healthcare, railways, and more.

Privatization In Healthcare

Privatization of healthcare is the participation of the private sector. We are transferring functions to the private industry. This was the critical question: will privatization of health care succeed? Even after many problems and issues, privatizing health care services is a success in multiple dimensions.

The healthcare services needed to be in the hands of both the private and public sectors. To maintain the healthcare system in India, the benefits must be privatized. The public sector cannot provide services due to the increasing number of diseases. Public sector services receive money from the government. So, even if the public sector is broken, it cannot refuse to treat the patient. The private sector, on the other hand, has the right not to treat patients.

This shows the need for the privatization of healthcare in India.

The price increase of medical services will only allow the rich to survive. The privatization of healthcare has been beneficial to India’s economy. It has also gained a good reputation in the international market.

The Privatization of Healthcare is a Boom for the Country’s Economy

In India, the healthcare industry comprises many service providers, including doctors, nurses, and hospitals. They provide diagnostic and remedial services to Indian citizens. It is expected that the Indian healthcare market will grow to USD 372 billion. This sector’s contribution to the economy is expected to grow due to rising earnings, increased healthcare awareness, easier insurance access, and a rise in lifestyle diseases.

In India, the hospital industry is expected to grow 16-17 percent and reach 6.2 trillion dollars in 2022. In the last five years, there has been an increase in healthcare facilities and doctors. In 2018, the Indian government launched Ayushman Bharat, the most extensive healthcare program in the world. Ayushman Bharat allows people below the poverty level to receive 5 lakh rupees in health insurance.

The private sector was a significant player in the Indian economy, not only because it brought income to India but also because it helped India gain a reputation at home and abroad. Increased healthcare expenditures by the Indian government could lead to a three percent increase in GDP last year.

Ayushman Bharat has provided treatment to more than 50 lakh patients. With this scheme, the government will create 11 lakh jobs in the next few years. The Indian healthcare wearables industry grows 75-100 percent each year and contributes nearly USD 1923 million in revenue to the Indian economy. If health care privatization had not occurred, we would have all known the extent of the pandemic.

It could be complicated for India to recover. The medical facilities were significant in producing the covid vaccine, which has helped India’s economy. India also gained international recognition because of that. Privatization in healthcare has many benefits, including the ability for patients to choose their doctor. The doctor-to-patient ratio was meager before privatization. Now, it can be improved. We all know that quality is often more expensive.

Some treatments are also expensive in private hospitals. The government has also taken some initiatives in this area, such as a central health scheme that offers free cancer treatment to patients at any hospital. The government hospital received support from the private hospitals through privatization. It was best to understand it by using the scenario of Covid 19. Everything that succeeds has to overcome various challenges.

Privatization In Railways

The Indian Railway is the eight largest employer in the world. The company has about 1.3 million workers. The Ministry of Railways started allowing private operators to operate trains on its network. It invited Request for Qualifications to use passenger train services on more than 100 routes, with 150 modern trains. Private sector investment will be around Rs. 30,000 crores. It means that private companies will have the same opportunities to operate their trains throughout the country, and this company will cover all of their expenses.

Private trains are competitively priced compared to other modes of transport like buses and airways. The consumer should consider the price before making a booking. Even though only 5% of the trains are operated by private companies in India, 95% are still run by Indian Railways. Indian Railways is also trying to privatize. The government has decided to give private companies 50 trains and 150 stations.