Question

Write difference between :

Privatisation and Liberalisation

Answer 1

Privatisation	Liberalisation
(i) Privatisation means reducing the involvement of the public sector and increasing the involvement of the private sector in the country’s economic activities.	(i) Liberalisation means reducing or relaxing unnecessary restrictions over economic activities.
(ii) The policy of reduction investment is adopted to privatise the public sector.	(ii) Automatic approval to the foreign technology, providing tax concessions and other incentives to the foreign investors, etc.
(iii) The public sector enterprises are taken over by the private sector. It enables the country to improve the efficiency of these enterprises.	(iii) Liberalisation has given a boost to the industries in the private sector and given momentum to the industrial development of India.
(iv) Their policies lead to an increase in unemployment.	(iv) It has encouraged the culture of consumerism.