Is privatization truly the right path for India’s PSUs?

NewsIP had previously cautioned that privatizing Public Sector Undertakings (PSUs) in India could turn out to be a costly mistake. The latest developments with Air India seem to validate that concern. Once a state-owned airline, Air India’s much-hyped privatization has not yielded the expected improvements. Instead, operational efficiency, safety standards, and customer service have seen a noticeable decline.
The Tata Group, known for its commitment to excellence and ethical business practices, has struggled to maintain the airline’s efficiency impacting it’s reputation. Air India has been plagued by incidents reflecting poor service and management—ranging from broken seats offered to ministers, safety oversights, branding confusion and subpar catering to frequent technical delays even inhumane treatment of passengers.
A recent incident where an elderly woman was denied a wheelchair at check-in has further raised questions about the airline’s commitment to passenger care. The explanation given by Air India, citing a lack of prior intimation, is both unconvincing and alarming. In an industry that thrives on service, such rigid policies undermine consumer trust.
Furthermore, inquiries into Air India’s operational lapses have yet to yield any visible outcomes. Passengers, who expect a safe and reliable flying experience, deserve transparency regarding corrective actions taken by the airline and regulatory authorities like the DGCA. If Air India continues to operate with such disregard for passenger welfare, the very premise of privatization as a means to enhance efficiency and service quality stands challenged.
The larger question remains: Is privatization truly the right path for India’s PSUs, or is it proving to be an irreversible misstep? The case of Air India suggests that handing over public assets to private entities without stringent oversight can lead to declining service standards and a loss of public trust.
Disclaimer : www.NewsIP.in provides news and articles for information only. We strive for accuracy but make no guarantees. Content reflects authors’ views, not ours. We’re not liable for errors, damages, or third-party links. Verify information independently. We may update or remove content anytime.