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Questions
Give two reasons for privatisation of public sector units in India.
Give three arguments in favour of privatisation of public sector enterprises.
Explain four reasons for the privatisation of Public Sector Undertakings.
Solution
Reasons for privatisation of public sector units in India.
- Most public sector enterprises have become an economic burden on the national economy as they suffered losses.
- Privatization promotes competition. And competition induces upgradation of modernisation, which are very essential for growth and development.
- Private enterprises undertake production activities to the satisfaction of their consumers. So consumers are benefited.
- To promote economic growth by encouraging innovation and entrepreneurship in formerly state-run sectors.
Notes
Students should refer to the answer according to their questions.
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