India's Top PSUs 2021

1 Dun & Bradstreet India is pleased to present the 2021 edition of its publication, India’s Top PSUs . The publication, now in its 13th edition, is a compendium on Public Sector Undertakings (PSUs). The current edition of the publication profiles 213 leading Indian PSUs, comprising of Central Public Sector Enterprises (CPSEs), public sector banks, public sector insurance companies and FIs/NBFCs. The publication also features a listing of 1,113 active state PSUs from across the country. In 1947, a newly-independent India found herself grappling with several socio-economic problems, which included income inequalities, low employment levels, regional imbalances in economic development, a weak industrial base, inadequate investments and poor infrastructure, among several other issues. Amid such a scenario, PSUs were developed as the catalysts for self-reliant economic growth. Since then, even seven decades after independence, PSUs continue to play a significant role in the country’s economic development. The share of their gross turnover to India’s GDP (at current prices) stands at close to 20%. Although small in number, PSUs listed on the BSE contribute to more than 7% of the total market capitalization. Public Sector Banks (PSBs) play a key role in the Government‘s financial inclusion program, accounting for nearly 80% of the bank accounts that have been opened under the Pradhan Mantri Jan Dhan Yojana. Furthermore, PSUs also consistently uphold their CSR commitment by contributing to more than 65% of the aggregate CSR spend of Indian corporates. Across the globe, the pandemic has highlighted the role state-owned enterprises (SOEs) have played in rebuilding economies and in saving livelihoods. Public utilities, banking services and other essential products and services have been sustained even amidst turbulent times, without profit considerations. On the other hand, SOEs have also been subjected to criticism on several fronts, including arguments that they are statutory monopolies with easy access to finance and inadequate market discipline, low incentive to function efficiently and significant potential to influence policy and competition to the disadvantage of their private cohorts. In the Indian context, PSUs were established to meet broader socio- economic considerations rather than for profit motives. Therefore, despite the fact that a larger number continue to be loss-making, it is critical to help them overcome possible inefficiencies and expedite their resurgence. There is a need to create the right incentives for PSUs to perform and for government agencies to properly oversee PSUs. Full transparency can help improve accountability. PSUs need to be properly funded to achieve their economic and social mandates. Ensuring a level playing field for PSUs and private firms would promote healthy competition and foster greater productivity. While the pandemic has dented India’s growth story and led to a situation of low demand, low consumption and low investment, the Government has already introduced several reforms aimed at boosting liquidity in the hands of individuals and businesses. Against this backdrop, Indian PSUs have an opportunity to make a huge difference by setting the Government’s mission in motion, by boosting investment, providing employment, contributing to the government exchequer through taxes and dividend, supporting MSMEs, contributing to exports and being ambassadors of corporate governance. As India approaches a milestone of 75 years of Independence, PSUs can help stage an economic revival by focusing on building resilience and on modernizing systems, processes and approaches. Accordingly, the theme for this edition of the publication is ‘ Building Resilience and Modernizing India@75 & Beyond’ . I hope you will enjoy reading this publication and look forward to receiving your valuable feedback and suggestions. Preface Avinash Gupta Managing Director - India Dun & Bradstreet Dun & Brads reet