Even European countries prosperity is coz of Capitalism here. Democratic or not Socialism is Socialism the government controlling all the means of production. India still has Socialist elements infact a lot one of them being running PSUs which they should not in the first place. Even some Capitalist countries provide free services like health, public transport to senior citizens, etc. these are called welfare and only feasible in a capitalist system having surplus revenues to finance these welfare schemes and the govt. may protect certain strategic industries from foreign competition it's fine. Education, Health, Defence, Law and order are the things the govt. should provide in any system.
Point is I'm not going to say as of now everything in IR...
more... should be privatised but certain things should like railway related PSUs like IRCTC, IRFC, etc. production units, cleaning and maintenance activities.
There are many things besides PSUs which the govt. should really give up which I won't say as it will be controversial to some members here.