Question

Write short note on :

Privatisation/Private enterprise

Answer 1

• Privatisation signifies the process wherein, the government transfers ownership, management, and control of the public sector enterprises to the private sector entities. 
• Allows the private sector to set up industries in the field earlier reserved for the public sector. 
• Privatisation has substantially reduced the role of the government in economic activities. 
• Privatisation is an allied process that accompanies globalisation. 
• Under the process of privatisation, reducing the involvement of the state in economic activities and increasing the involvement of the private sector are expected. 
• The government has been thereby trying to mobilise resources for improving the efficiency of the remaining public sector units. 
• Under the policy of globalisation, various countries have adopted the process of privatisation.