The government owned companies, or PSUs, in India registered $383 billion turnover in 2011-12 with a revenue growth of 11% since 2009, says a study.
According to a study by globalisation advisory firm Zinnov, the public sector in India gives employment to 1.4 million people and 40% of PSUs operate in the manufacturing sector.
The report highlighted that investment in technology is a key trend shaping up the growth of the sector.
PSUs are looking at investing in technology to help address the challenges they faced in early years of transition towards establishing a more transparent and accountable organisation, reduce the cost of production and enhance productivity and customer reach, the report said.
Energy and BFSI are the major PSU verticals for IT investments, it added.
The report also mentioned some of the major challenges which have impacted the growth of the Indian PSU sector.
At present, the major challenge faced by the PSU sector is the 'talent related challenge' resulting in lack of performance incentives in terms of recognition and accelerated growth paths for workforce, giving rise to productivity challenges.
In addition to this, it said, other challenges like lack of quantitative benchmarks against domestic private companies or global equivalents is affecting the performance of the sector while broad-based decision making structure (stakeholders with overlapping responsibilities) is resulting in the lack of accountability.