Introduction 

In the late 20th century, many countries, including India, saw a shift towards privatization, moving away from socialist economic models.

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Privatisation In 90's to Now

By 1993-94, India had numerous public sector enterprises, with a significant amount of capital invested in them.

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Meaning of Privatisation

Privatization of industries means opening the gates of the public sector to the private sector. It enhances the importance of the private sector.

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1. Narrow Meaning of Privatisation

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The term privatisation is used in two senses:

2.  Broader Meaning of Privatisation

 Measures of Privatisation

Three measures of privatisation are:  (i) Ownership Measures  (ii) Organisational Measures  (iii) rational Measures.

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Inefficiency and low productivity of the public sector account for the increasing tendency of privatisation in recent years.

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Causes of Privatisation

Objectives of Privatisation

The main objectives are described as under: (1) To increase the efficiency and competitive power of the enterprises. (2) To reduce deficit financing and public deficit. (3) To strengthen industrial management. (4) To earn more and more foreign arrange

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(1) Reduction in Economic Burden (2) Increase in Efficiency (3) Reduction in Sense of Irresponsibility (4) Scientific Management (5) Reduction in Political Interference

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Merits or Advantages of Privatisation

Demerits or Disadvantages of Privatisation

(1) Industrial Sickness (2) Lack of Social Welfare (3) Class Struggle (4) Increase in Unemployment (5) Ignores Weaker Sections

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