Public Administration Optional · Paper II · Indian Administration
Public Sector Undertakings Notes · PYQs
Free notes and every UPSC previous year question for Public Sector Undertakings, Unit 03 of Paper II: the official syllabus, 2 topic-wise notes in syllabus order, and all 43 questions from 1987 to 2026 grouped by sub-topic.
2
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43
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20
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1987–2026
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Official UPSC syllabus
Public Sector Undertakings: syllabus
The syllabus text as UPSC notifies it for Paper II of Public Administration Optional. Every note and question on this page maps to it.
Public sector in modern India; Forms of Public Sector Undertakings; Problems of autonomy, accountability and control; Impact of liberalization and privatization.
Paper II · Unit 03
Public Sector Undertakings notes
Topic-wise notes for this unit in syllabus order, written for UPSC Mains with diagrams, key terms, Indian examples and the previous year questions on each topic.
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Previous year questions: Public Sector Undertakings
All 43 questions UPSC has set from this unit between 1987 and 2026, grouped by syllabus sub-topic and sorted newest first. Questions from 2013 onwards are shown; earlier ones open on a tap.
How often UPSC asks each sub-topic
| Sub-topic | Questions | Since 2013 | Last asked |
|---|---|---|---|
| Public sector in modern India | 8 | 0 | 2003 |
| Forms of PSUs | 5 | 1 | 2024 |
| Autonomy and accountability | 10 | 6 | 2024 |
| Liberalisation and privatisation | 20 | 13 | 2026 |
Public sector in modern India
8 questions · 0 since 2013 · last asked 2003
Read the notes: Public Sector Undertakings
1988–2003 · 8 questions
2003“The size of the leviathan goes on expanding, despite the country’s recent commitment to downsizing or rightsizing.” Comment.2003“The steady expansion and the gradual decline of the public sector has been one in post-Independence India.” Discuss this statement and suggest measures to arrest the decline of the public sector in India.1998“Indian public enterprises are neither adequately ‘public’ nor truly ‘enterprising’.” Comment.1994“The public sector has to grow. It has a strategic importance.” Comment.1992‘With the fall of the Soviet System, the fervor socialist administration has declined. Examine the statement in the light of recent policy decisions in the Government of India with regard to public undertakings.1990Public Undertakings of the Central Government could be booked upon both as an asset and a liability. Which measures would you suggest to enhance their utility as an asset and to reduce their drag as a liability? Examine in depth the working of one central public undertaking in this context.1989‘Pricing Polity for Products and Services have to be different for monopolistic, semi-monopolistic and competitive kinds of Public Enterprise. A policy of No Profit, No Loss cannot be recommended as the long-term goal or as a permanent policy for most State Undertakings in India.’ Comment.1988“The development of the Joint Sector, the availability of organised trade unions and the entry of the Public Sector into low Social priority areas have rendered the administration of public enterprises politically unaccountable, managerially ineffective and financially non-viable.” Comment.
Forms of PSUs
5 questions · 1 since 2013 · last asked 2024
Read the notes: Public Sector Undertakings
Asked since 2013 · 1
2024Public sector undertakings have been the bedrock of welfarism in India for many decades. Evaluate the pros and cons of current disinvestment scenario.
Show 4 earlier questions (before 2013)
1991–2011 · 4 questions
2011Can the holding company’s structure act as an institutional change to add to efficiency? Give your answer with appropriate illustrations.1999“The Public Corporations in India are like exhausted Leviathans.” Comment.1995“The departmental public undertakings have necessarily been placed under the full control of the Government and Parliament.” Comment.1991‘The company form of organization in public sector is said to be a fraud on the principle of parliamentary accountability. Yet it is the most popular enterprise in the field of public sector organization in India.’ Comment.
Autonomy and accountability
10 questions · 6 since 2013 · last asked 2024
Read the notes: Public Sector Undertakings
Asked since 2013 · 6
2024“Autonomy to Public Undertakings is a myth.” Analyse.2018“Contracting out tasks without effective accountability mechanisms can be counter-productive for effective service delivery.” Comment.2015Explain fully how a balance can be struck between autonomy and accountability of India’s public enterprises.2015Argue the case for and against creating Indian Public Enterprises and Industrial Service for boosting the moribund public sector in India.2014“Public sector undertakings must learn to survive and be entrepreneurial, without assured government budgetary support.” In the light of this statement give your suggestions for strengthening their autonomy and reviving the health of sick Public Sector Undertakings.2013“Autonomy to public sector undertakings is a myth.” Analyse in the context of the use of government expenditures by politicians who control governments at different levels.
Show 4 earlier questions (before 2013)
1987–2010 · 4 questions
2010Is it correct to state that “one of the major reasons for the failure of many …… Public sector undertakings was due to departures from the original concept of autonomy”?2007“The blame for our poor public sector performance can be laid on the way our bureaucracy is structured.” Comment.2002“Public undertakings on longer occupy ‘commanding heights’.” Comment.1987‘The poor performance of Public Undertakings in the Core Sectors of Indian economy has sparked off problems of political accountability and labour participation in management.’ Comment.
Liberalisation and privatisation
20 questions · 13 since 2013 · last asked 2026
Read the notes: Liberalisation, Privatisation and Disinvestment of PSUs
Asked since 2013 · 13
2026The reforms in public sector enterprises is not only enduring but also evolving. Explain.2026Government of India has done Corporatisation of Ordnance Factory Boards. Discuss the rationale in the light of Disinvestment Policy of the government.2025Liberalization of Indian economy has forced public enterprises to enhance their efficiency, but the effects of these reforms have been a topic of debate. Analyze.2024The Liberalization, Privatization, and Globalization (LPG) has enhanced the participation of private sector in Indian Economy. Comment.2023In the context of the Second Administrative Reforms Commission recommendations, evaluate Public-Private Partnership (PPP) as a preferred mode of implementing infrastructural projects.2022Following the onset of globalisation, the traditional bureaucratic model appears to have lost its significance. Comment.2022“The New Economic Reforms during the past three decades have not only reduced the scope of industrial licensing and areas reserved exclusively for Public Sector but also infringed the autonomy of existing public sector undertakings”. Examine.2021The government policy of large-scale privatization of the key sectors of economy may affect India’s economic health. Comment.2020Does the privatization of key public sector bodies augur well for welfarism in India? Discuss with suitable illustrations.2019Public Sector Undertakings were expected to take the Indian economy to the “commanding heights” instead the successive governments have been pushing for disinvestment. Critically examine how the scenario has changed over the years.2018“The market-driven profitability concerns have shaken the foundation of the public sector undertakings.” Do you agree? Give reasons.2017“Public Sector Undertakings (PSUs) in India face tough competition from the private enterprises and Multi-National Corporations (MNCs).” Explain2016Evaluate the performance and efficacy of the Maharatna, Navratna and Miniratna type of Public Sector Undertakings in the context of Liberalization, Privatization and Globalization (LPG).
Show 7 earlier questions (before 2013)
2000–2012 · 7 questions
2012“’Memorandum of Understanding’ scheme between the Government and Public enterprises has forced public undertakings to improve their overall performance.” Do you agree with this statement?2007“Memorandum of understanding scheme’ between government and public enterprise has forced public undertakings to improve the overall performance.” Comment.2004“In the context of liberalisation the role of Public Sector and its welfarist approach is being drastically changed.” Elucidate.2002“The role of public sector has been changing tremendously in the context of liberalisation.” Comment.2001“Despite liberalization, privatization and globalization of economy, the public sector has its own relevance for India.” Discuss the functions and role of public sector in the new economic scenario and the changes that they need to bring about in them.2000Do you agree that globalization, liberalization and privatization policies are going to change the very fabric of Indian Administration? What, according to you, are the major challenges before it in the 21 st century?2000Discuss the major problems of management and working of Public Sector Undertakings in India. Give suggestions in the light of liberalization policy to improve their performance.
Year-wise question papers
All question papers Topic-wise PYQ bank (both papers) Topic-wise PYQ post: Public Sector Undertakings 2026 paper 2025 paper 2024 paper 2023 paper
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