In the late 20th century, many countries, including India, saw a shift towards privatization, moving away from socialist economic models.
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By 1993-94, India had numerous public sector enterprises, with a significant amount of capital invested in them.
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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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2. Broader Meaning 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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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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(1) Industrial Sickness (2) Lack of Social Welfare (3) Class Struggle (4) Increase in Unemployment (5) Ignores Weaker Sections
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