No matter what, public sector can never successfully compete with private sector. The reason is the STAKEHOLDER. In public sector, the owner is GOVT which means nobody really owns and has a vested interest in the profitability of the enterprise. The ROI on public sector can at best be negligible or negative. The public sector can never match the pay of the private sector. The latter attracts talent based on compensation, and together with profit motive, the enterprise does well. Instead of diverting TAX MONEY to compensate for the pay of the employees, the govt should privatise all public sector enterprises. It will have much less obligation to these employees. The fiscal deficit situation would ease drastically. Economy would grow faster, and prices would come down due to competition. Tax revenues will increase. India needs to do this on a consistent basis for next three decades to raise the living standards of the majority poor in this country.
