Topic Details (Notes format)

Public-Private Partnerships (PPP)

Subject: Economics

Book: Comprehensive Indian Economy

PPP models unite government oversight with private investment and expertise to develop highways, airports, and metro rail systems. Contracts—like Build-Operate-Transfer (BOT)—share risks and rewards. The viability gap funding mechanism supports financially unviable but socially necessary projects. Exam questions often assess PPP’s track record, referencing successes (Delhi Airport T3) and failures (delays, cost overruns). Students should understand different concession agreements, risk allocation strategies, and dispute resolution frameworks. Balancing private profits with affordable public services remains a major policy challenge in infrastructure expansions.

Practice Questions

What is the meaning of “disguised unemployment”?

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Which of the following statements best defines Gross Domestic Product (GDP)?

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What is meant by “liquidity trap”?

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Which of the following measures can reduce a trade deficit?

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What is “open market operations” (OMO)?

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Which of the following is considered a public good?

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Which of the following is an example of fiscal policy?

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Which of the following is an example of a non-renewable resource?

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

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What does the Gini Coefficient measure?

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