Contribution of PSUs in GDP The global economic performance has been subdued over the previous couple of years. The CPSEs in India are performing to the best of their abilities in this prevailing economic scenario. The share of the gross turnover of CPSEs to the Gross Domestic Product (GDP) of India at current prices during 2014-15 is 15.9 per cent. Performance of CPSEs is assessed through Memorandum of Understanding (MoU), a negotiated agreement between the Government and the enterprise, wherein growth targets based on the previous performance and current economic scenario are set in the beginning of the year and performance is evaluated" at the end of the year. The Government has already empowered the Board of Maharatna and Navratna CPSEs, inter-alia to (i) enter into technology joint ventures or strategic alliances, (ii) obtain by purchase or other arrangements, technology and know-how, (iii) establish financial joint ventures and wholly owned subsidiaries in India or abroad within prescribed limits, and (iv) to effect organizational restructuring including establishment of profit centers, opening of offices in India and abroad and creating new activity centers. This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Rajya Sabha today.
