Public Sector

Who Should Own Big Organisations — Individuals or Government?

Across the world, large organisations fall into two baskets:

Government-owned enterprises (PSUs)

Privately-owned enterprises (individuals, families, corporations)

Both are essential, but both come with baked-in strengths and risks. What matters is how political leadership and bureaucracy handle them.

1. The Government Sector: Strong Muscles, Weak Nervous System

A government enterprise usually starts with noble goals:

Universal access, public service, nation-building.

But over time, two forces undermine them:

a) Bureaucratic rigidity

Procedures become more important than outcomes.

Decision-making slows down. Risk-taking disappears.

Even a small operational change requires multiple approvals.

b) Political interference

Unproductive postings, patronage networks, and delays due to political calculations.

The organisation slowly loses its competitive edge.

BSNL is the classic example.

Fantastic infrastructure. Massive reach.

But suffocated by layers of rules, slow upgrades, and no authority to take market-speed decisions.

A Ferrari engine operated by 1950s traffic rules.

Result:

The country suffers, and private players take over the space.

2. The Private Sector: Fast, Efficient — But Not Your Friend

Private enterprises have built modern economies.

They innovate, move quickly, and take bold decisions.

But their goal is not national interest — it is profit.

This is not immoral; it is their operating DNA.

They will:

Expand rapidly when profitable

Exit brutally when loss-making

Lobby aggressively for favourable regulations

Use crisis moments to push their agenda

The Indigo Episode: A Textbook Case

Indigo knew exactly when to push:

At a moment when India was geopolitically occupied with Putin’s arrival in Delhi, they triggered a disruption over DGCA’s Flight Duty Time Limitations (FDTL).

Two years they had to plan.

They ignored it.

Then suddenly, they tried to corner the government and create public pressure.

This is corporate strategy, not coincidence.

It shows a truth many don’t want to admit:

Private companies can arm-twist the state when they reach near-monopoly scale.

3. So, Which Model Is Better?

Neither is perfect.

A modern nation needs a hybrid approach.

Where the Government Must Stay Strong

Telecom backbone

Railways

National power grid

Defence manufacturing

Health & food security networks

Aviation safety and regulation

Here, national interest outweighs profitability.

Where Private Sector Should Dominate

Consumer services

Retail

Technology R&D

Logistics

Airlines (operations, not regulation)

Here, speed and customer focus matter.

4. The Real Problem: The Missing Middle

India’s challenge is not “public vs private”.

It is bureaucracy vs accountability.

Government institutions are tied down by procedure,

Private institutions are unrestrained by social responsibility.

India needs a governance architecture where:

PSUs have operational freedom like a private firm

Private firms face strict enforcement when they cross lines

Regulators are independent, competent, and fearless

Political leadership does not allow monopoly behaviour

5. Conclusion: Balance of Power, Not Blind Faith

A strong government ensures national assets are not looted.

A strong private sector ensures the country stays modern and efficient.

What India must avoid is PSU lethargy on one side and corporate bullying on the other.

The Indigo incident is a reminder:

When bureaucracy weakens public institutions, private giants gain enough muscle to challenge national authority.

A country of India’s scale cannot afford either extreme.