Top of Mind – Privately sovereign

Independent India focussed on industrialization through public enterprises with impetus on nation building and lesser focus on free market economics. While PSUs continue to make significant contribution to the economy, however, their share in overall economy & corporate sector tapered over the period of time and now contributes less than 20% to overall corporate profitability. However, there is an interesting niche developing between public and private sectors which tend to enjoy best of both worlds– focus on capital efficiency, profitability like private companies and scale, monopoly & quasi regulatory moats like PSUs creating Private-ly Sovereign entities.