Risks of Privatisation According to critics the policy of privatization suffers from the following drawbacks 1] No social justice Since private sector is profit-oriented it cannot ensure social justice. 2] Poor performance Many private sector units in India are performing…
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Privatisation – VI
Tagged with: 1991, disadvantages, nep, new economic policy, Privatisation, problems
Posted in Indian Economy
Posted in Indian Economy
Privatisation – V
Advantages of Privatisation The basic economic argument given for privatization is that governments have few incentives to ensure that the enterprises they own are well run. One problem is the lack of comparison in state monopolies. It is difficult to…
Tagged with: 1991, advantages, components, nep, new economic policy, Privatisation
Posted in Indian Economy
Posted in Indian Economy
Privatisation – IV
Measures taken for Privatisation 1] Dereservation policy The public sector entering new areas of industrial and technical competence, a number of problems like insufficient growth in productivity, poor project management, over-manning, inefficiency etc. The result is that many of the…
Privatisation – III
Privatisation in India In the Industrial policy resolution of 1948 about 17 strategic and important industries were reserved for the public sector. From 1956 onwards government kept increasing the public sector hence the growth of public sector was fast. This…
Privatisation – II
Definition of Privatisation Etymology The Economist magazine introduced the term in the 1930s in covering Nazi German economic policy. History The history of privatization dates from Ancient Greece, when governments contracted out almost everything to the private sector. In the…
Privatisation – I
Meaning of Privatisation The concept of privatization is used in a narrow as well as broader sense. In a narrow sense privatization means transfer of ownership from public sector [government owned enterprises] to private sector, where it is privately owned…
Libralisation – IV
Measures undertaken for liberalization 1] Delicensing policy The industrial licensing policy was removed/abolished for all industries except six strategic industries ie hazardous chemicals, cigarette, alcohol, defence products, drugs and pharmaceuticals and industrial explosives. As a result the other industries were…
Libralisation – III
Economic liberalisation in India Indian economic policy after independence was influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature Policy tended towards protectionism, with a strong emphasis on import substitution, industrialization under state monitoring,…
Libralisation – II
Definitions of liberalization The term “liberalisation” means “economic freedom” or “freedom for economic decisions.” It follows that the consumers, producers and owners of factors of production all are free to take their decisions to promote their self interest. Even the…
Libralisation – I
Meaning of Economic liberalization Economic liberalization is a very broad term that usually refers to fewer government regulations and restrictions in the economy in exchange for greater participation of private entities. The arguments for economic liberalization include greater efficiency and…