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Those Public Sector Undertakings Which Are Making Profits Should Be Privatised. Do You Agree with this View? Why? - Economics

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प्रश्न

Those public sector undertakings which are making profits should be privatised. Do you agree with this view? Why?

संक्षेप में उत्तर

उत्तर

An efficient and profit earning PSU is a revenue generator for the government. But if, a PSU is an inefficient and loss making one, then the same PSU exerts unnecessary burden on the government's scarce revenues and further may lead to budget deficit. The loss making PSUs should be privatised whereas it would not be fair to privatise a profit making PSU. Privatising a PSU may lead to concentration of monopoly power in the private hands. Further some of the PSUs like, water, railways, etc. enhance the welfare of nation and is meant to serve general public at a very nominal cost. Privatisation of such important PSUs will lead to loss of welfare of poor people. Hence, only less important PSUs should be privatised while leaving the core and important PSUs to be owned by the public sector. Instead of privatisation of profit-making PSUs, government can allow more degree of autonomy and accountability in their operations, which will not only increase their productivity and efficiency but also enhance their competitiveness with their private counterparts.

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Liberalisation
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 3: Liberalisation, Privatisation and Globalisation: An Appraisal - Exercise [पृष्ठ ५३]

APPEARS IN

एनसीईआरटी Economics - Indian Economic Development [English] Class 12
अध्याय 3 Liberalisation, Privatisation and Globalisation: An Appraisal
Exercise | Q 9 | पृष्ठ ५३

संबंधित प्रश्न

Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?


What are the major factors responsible for the high growth of the service sector?


Why has the industrial sector performed poorly in the reform period?


Discuss economic reforms in India in the light of social justice and welfare.


Rate of which tax was reduced as per the tax reforms?


For how many industries, licensing is still necessary?


What is the investment limit in small scale industries?


India’s post-1990 economic strategy entailed three important breaks with the past:

  • To dismantle the vast network of controls and permits that dominated the economic system.
  • To redefine the role of the state as a facilitator of economic transactions and as a neutral regulator rather than the primary provider of goods and services.
  • To move away from a regime of import substitution and to integrate fully with the global trading system.

The 1991 reforms unleashed the energies of Indian entrepreneurs and gave untold choices to the consumers and changed the face of the Indian economy. The reform agenda constituted a paradigm shift and has defined the broad contours of economic policymaking for three decades.

Liberalization was adopted as the guiding principle of governance and all governments since 1991, have broadly stuck to that path.

Today we don’t need a paradigm shift. We need to look at individual sectors and see which one of these needs, reforms to create a competitive environment and improve efficiency. The power sector, the financial system, governance structures, and even agricultural marketing need reforms.

Today’s reforms also require much more discussion and consensus-building. The central government needs to work in tandem with state governments and consult different stakeholders impacted by reform decisions. Timing and sequencing are critically important in the new reforms’ agenda.

  • According to the given text, ____________ was adopted as the guiding principle of governance and all governments since 1991.

Which of the following factors led RBI to change its role from the controller to facilitator of the financial sector in India? 


Which of the following is a stock?


Consider the following statements about Export of cotton Textiles.

  1. It is shown in the debit side of the current account.
  2. It reduces the balance of payment deficit.
  3. It is shown in the credit side of the current account.

Which of the following statements are true?


An example of a direct tax is ______


Wealth tax is


Which of following is a direct tax?


Match the items in Column A to those in Column B and choose the correct option:

Column A Column B
1 GST (a) Indirect Tax
2 Income Tax (b) Burden can be shifted
3 Fine (c)  Direct Tax
4 Tax Receipts (d)  Capital Receipt

Which one of the following is a combination of direct taxes?


Identify the correctly matched pair in Column A and Column B from the following:

Column A Column B
1 Uniformity of taxes (a)  Effect of 2016 Demonetisation
2 At the State Level (b) Benefit of GST
3 One Point Single Tax (c) Objective of GST
4 Brought an end to black money (d) SGST

Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis, the rupee was devalued against foreign currencies.

Reason (R): Devaluation of currency was eminent, to replenish the deteriorated foreign exchange reserves.


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