The economic reforms programme is going to affect not only the private industrial sector but also the public sector. Many people associate the economic restructuring programme with privatisation. This is one area of economic reforms where India has chosen to tread cautiously. The process of privatisation has been set in motion by the disinvestment campaign in the public sector. Public sector industries in India have been characterised by inefficiency, and many of them have been incurring losses over long periods while their counterparts in the private sector are making profits. The economic reforms programme in India will be incomplete without a restructuring of the public sector undertakings.
India's approach towards reforms is cautious.