ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Privatization? Privatization occurs when a government-owned business, operation, or property becomes owned by a private, non-government party. Privatization may also describe a transition that takes a company from being publicly traded to becoming privately held.

Detailed explanation-2: -Privatisation is considered to bring more efficiency and objectivity to the company, something that a government company is not concerned about. India went for privatisation in the historic reforms budget of 1991, also known as ‘New Economic Policy or LPG policy’.

Detailed explanation-3: -Public action is not a method of privatization as privatization is a method of transfer or sale of public assets to the private ownership.

Detailed explanation-4: -Privatisation always helps in keeping the consumer needs uppermost, it helps the governments pay their debts, it helps in increasing long-term jobs and promotes competitive efficiency and open market economy.