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Public Sector Undertakings (PSUs) in Core Industries

PYQs

8

Articles

1

Momentum

21

Phase IFoundation

Background

Overview

UPSC often examines the performance, challenges, reforms, and strategic importance of PSUs in India's economic development, their contribution to public finance, and their role in achieving national objectives and industrial self-reliance.

Public Sector Undertakings (PSUs) are government-owned corporations established to operate in strategic sectors, provide essential services, and drive economic growth. They play a crucial role in India's core industries like mining, steel, energy, and infrastructure, often undertaking large-scale capital-intensive projects that may not attract private investment due to long gestation periods or lower profitability.

Phase IIStatic core

Facts & tables

Key facts

Key PSUs involved

NMDC (mining) and Rail Vikas Nigam (RVNL - railway infrastructure) are state-owned entities.

Strategic Investments

NMDC plans ₹50,000 crore investment to enhance iron ore mining capacity to 100 million tonnes by 2030.

Infrastructure Development

RVNL awarded a ₹2,977 crore contract to establish a blending yard in Visakhapatnam for NMDC.

Economic Contribution

PSUs contribute significantly to India's GDP, employment, and industrial output, especially in critical sectors.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaIndian Economy

Reference table

Institutions & roles

BodyRole
NMDCImplements
Rail Vikas Nigam (RVNL)Implements
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Conceptual understanding

Prelims angle: Application of economic principles

Quick revision

  • Government-owned entities in strategic sectors.
  • Drive economic growth, employment, infrastructure.
  • NMDC (mining) and RVNL (rail infrastructure) are examples.
  • Significant capital investments (e.g., ₹50,000 cr by NMDC).
  • Impact on public finance and industrial output.

High-confidence PYQs

2025Conceptual understanding, Application of economic principles

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings ...

EconomyOpen question

With reference to the Government of India, consider the following information: | Organization | Some of its Functions | It Works Under | |--...

Indian PolityOpen question
2025Multi-statement analysis, Institutional roles and functions

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings ...

EconomyOpen question

With reference to the Government of India, consider the following information: | Organization | Some of its Functions | It Works Under | |--...

Indian PolityOpen question
2023Multi-statement analysis, Factual recall

Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II :Many local companies and some foreign com...

EconomyOpen question
2021Conceptual understanding, Cause and effect relationships

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

EconomyOpen question
2019Statement-based questions, Factual recall

With reference to India’s Five-Year Plans, which of the following statements is/are correct? 1. From the Second Five-Year Plan, there was a determined thrus...

EconomyOpen question
2018Factual recall, Multi-statement analysis

If a commodity is provided free to the public by the Government, then

EconomyOpen question

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Go...

EconomyOpen question

Consider the following statements 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The ...

EconomyOpen question
2018Statement-based questions, Factual recall

If a commodity is provided free to the public by the Government, then

EconomyOpen question

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Go...

EconomyOpen question

Consider the following statements 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The ...

EconomyOpen question
2018Conceptual understanding, Application of economic principles

If a commodity is provided free to the public by the Government, then

EconomyOpen question

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Go...

EconomyOpen question

Consider the following statements 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The ...

EconomyOpen question

Topic timeline

Indian Economy
Prelims 2018· Factual recall, Multi-statement analysis

If a commodity is provided free to the public by the Government, then

Open question

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Go...

Open question

Consider the following statements 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The ...

Open question
Prelims 2018· Statement-based questions, Factual recall

If a commodity is provided free to the public by the Government, then

Open question

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Go...

Open question

Consider the following statements 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The ...

Open question
Prelims 2018· Conceptual understanding, Application of economic principles

If a commodity is provided free to the public by the Government, then

Open question

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Go...

Open question

Consider the following statements 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The ...

Open question
Prelims 2019· Statement-based questions, Factual recall

With reference to India’s Five-Year Plans, which of the following statements is/are correct? 1. From the Second Five-Year Plan, there was a determined thrus...

Open question
Prelims 2021· Conceptual understanding, Cause and effect relationships

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

Open question
Prelims 2023· Multi-statement analysis, Factual recall

Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II :Many local companies and some foreign com...

Open question
Prelims 2025· Conceptual understanding, Application of economic principles

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings ...

Open question

With reference to the Government of India, consider the following information: | Organization | Some of its Functions | It Works Under | |--...

Open question
Prelims 2025· Multi-statement analysis, Institutional roles and functions

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings ...

Open question

With reference to the Government of India, consider the following information: | Organization | Some of its Functions | It Works Under | |--...

Open question

RVNL to shape NMDC’s branded iron ore plans with ₹3,000 crore blending yard

23 Jun 2026 · PSUs are government-owned entities crucial for India's core industries and infrastructure. They undertake large-scale projects, contribute to economic growth, and impact public finance through investments and revenue generation.

Read article

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