Public Private Partnership has played a vital role in India's Economic Growth

Public Private Partnership has played a vital role in India's Economic Growth

Introduction

After India gained independence from British rule, it sought to establish itself as a leader in world politics and economics. Considered as the third largest economy in Asia, India is moving towards this goal with renewed force.

While the negative impact of recession has dented most world economies at some point or another, nations such as India seek to utilize their resources and demographic dividend for a brighter future.

Public-private partnerships (PPPs) have played a vital role in spurring economic growth in India. Regardless of which political party has been at the helm, public-private partnerships have had a high success rate in India. New technologies and software have been the result of collaborations between the corporate world and the public sector.

Viewpoint
• PPPs in India have ensures the speedy and cost effective of key projects in sectors such as power, technology and infrastructure. This has great value for taxpayers who are benefiting from the impact of such ventures.

• Public-private partnerships in India have integrated public infrastructure with the superior financing and maintenance provided by private enterprises. The synergistic collaborations between the public sector and private firms and companies have led to the generation of resources and knowledge transfer.

• PPPs have overcome the capacity constraints of the economy by generating huge productivity through optimal utilization of labour and capital resources.

• Joint ventures and partnerships between the leading companies and the government have been very successful in generating jobs as well as growth in key economic sectors.

• The public sector has regulated the projects to ensure accountability and delivery of quality products and services.

• Innovation and excellence characterize the public-private partnerships that have emerged across the years in India. These PPPs are ensuring the effective utilization of state assets in a manner that is productive as well as profitable.

• Infrastructure created using these partnerships is of a superior quality. This has led to the development of many good airports and buildings across India. India needs more basic infrastructure and PPPs are the best way to accomplish this.

• PPPs also help the public sector to develop a more commercial approach. This is essential as most parties in India are very oriented towards social welfare and they often do not consider factors such as profit. Any partnership is only successful if it is able to meet the needs of the masses and also generate a profit.

• PPPs have also ensured that the Indian public gets value for its money. India is a nation that has to meet the challenges of generating enough resources to meet the needs of the people.

India has one of the fastest growing populations in the world. Using the finances of the private firms to complete the PPP ventures has led to conservation of national and governmental resources.

Conclusion
Public-private partnerships offer great value for money. They also meet high standards of excellence. PPPs have contributed towards the growth and development of the Indian economy in multiple ways.

Combining the professionalism of the corporate sector with the welfare objectives of the state has resulted in projects such as the Mumbai airport which are known for their world class facilities and advanced amenities.