Impact of Cpses' Performance on Economic Growth in India: an Empirical Review

Author(s)	Ms. Jincy Joseph
Country	India
Abstract	Central Public Sector Enterprises (CPSEs) in India have played a pivotal role in the country’s growth trajectory since independence. Initially envisioned as the drivers of industrialization and social equity, their performance has, however, been debated over time, particularly in the wake of liberalisation, privatisation, and globalisation reforms. This article reviews studies on CPSEs performance and economic growth in India from the 19780s to the present. Studies reviewed include macro-level analyses of PSEs’ contribution to GDP, profitability, employment, disinvestment outcomes, and case-based evaluations of specific Maharatna and Navaratna companies. The reviews included in this article identify the recurring patterns of inefficiencies, mixed results of disinvestment, and the gradual shift toward strategic privatisation. Thus, CPSEs continue to remain integral to India’s economic structure; their future relevance lies in efficient governance, reduced government intervention, and sector-specific strategic reforms.
Keywords	CPSEs, Disinvestment, Liberalisation, Economic Growth, Public Sector Enterprises
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-11-19
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.59169

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