But with govt ownership also comes problems of corruption, incompetence, too much political interference, etc. Without privatization we would still be stuck with BSNL, LIC, SBI, etc employee bossing over us.
Capitalism is good we should have more of it but there should be a strong state regulating too and providing required welfare measures too.
Regarding Indian Railways i think more and more private players should be allowed to provide services like catering, cleaning, maintenance, etc. which we already have.