Lucknow, Nov 27: The widespread culture of government-run industry, which has prevailed in India for decades, pulled down the country's economic growth by at least 3-4 per cent, Union Disinvestment Minister Arun Shourie said here today. Shourie also said that the debate on the need for disinvestment should now be brought to a close as the process has clearly made the Indian industry more efficient and competitive.
Speaking at a seminar on 'disinvestment and WTO challenges', organised by the state development council here, Shourie said the disinvestment process had been absolutely transparent and was aimed at fast industrial development, which in turn would help the country mitigate the problems like unemployment and poverty.
Shourie congratulated the state government for its move to rehabilitate the sick sugar units, which, he said, incurred losses over of Rs 700 crores during last eight years.

Terming the sick units as bleeding ulcers, he said that the country could not afford to keep on nurturing them.

Shourie said contrary to the popular belief, disinvestment has removed the barriers and made the Indian industry competitive. That, he added, was borne out by the fact that despite recession India's exports increased by 19 per cent.

Bureau Report