How does granting the status of maharatnas, navratnas and miniratnas help public sector enterprises in India?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → All of the above
The government grants the status of maharatna, navratna or miniratna to PSEs to improve efficiency, infuse professionalism and help them compete more effectively in the liberalised global market.
Option (1) Improves efficiency — Correct statement, but it is only one of the correct points, so on its own it is not the answer. Better efficiency is one aim of the status.
Option (2) Infuses professionalism — Correct statement, but it is only one of the correct points, so on its own it is not the answer. The status is also meant to infuse professionalism.
Option (3) Enables them to compete more effectively — Correct statement, but it is only one of the correct points, so on its own it is not the answer. It helps them compete more effectively in the global environment.
NCERT (2026-27): “Box 3.1: Navratnas and Public Enterprise Policies … In order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalised global environment, the government identifies PSEs and declare them as maharatnas, navratnas and miniratnas. They were given greater financial, managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. …” |