Topic Details (Notes format)

Privatization and Disinvestment in India

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

The government occasionally sells stakes in public sector enterprises to reduce fiscal burdens and improve efficiency. Strategic sales (Air India) vs. minority stake disinvestments (LIC IPO) represent varied approaches. Exams may ask about the rationale, potential job impacts, or concerns of undervaluation. Also note public sentiment around strategic sectors (defense, railways) and how proceeds support social spending or deficit reduction, reflecting the balancing act between private efficiency and state control.

Practice Questions

What is the meaning of “supply-side economics”?

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What is “CRR” in banking terminology?

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Which of the following causes demand-pull inflation?

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Which of the following is an example of a capital receipt for the government?

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What is meant by “monetary policy”?

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What is meant by “credit rating”?

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Which of the following is a feature of monopolistic competition?

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What is the main objective of disinvestment in public sector undertakings (PSUs)?

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Which economic concept is described as “the next best alternative foregone”?

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What is meant by “marginal propensity to consume”?

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