Private good, public loss: PSEs have been losing mkt share to private peers

A Business Standard analysis of data in the CAG report shows the market share of the four insurers is eroding

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Other state-owned firms are no better. Data shows that the profits of profit-making central public sector enterprises (CPSEs) declined in 2019-20

Ishaan Gera New Delhi

3 min read Last Updated : Aug 18 2022 | 01:07 AM IST

In the United Kingdom, the contest among Conservative candidates for the party’s top post centres on apportioning the legacy of their late leader Margaret Thatcher. Rishi Sunak, a former chancellor, has promised to slash taxes as Thatcher did as prime minister. Foreign Secretary Liz Truss has started dressing like Thatcher. India has its version of Thatcher’s policies, wherein the state is either monetising or privatising assets to achieve the goal of minimum government.

An analysis of public sector enterprises' performance shows why the government wants disinvestment. Consider insurance. An August 2022 report by the Comptroller and Auditor General (CAG) said that four public sector insurers lost more than Rs 26,000 crore between 2016-17 and 2020-21. They charged lower premiums on