this presentation is a critical evaluation of privatisation in the economy and the evaluation of the statement "Though privatisation is important ,the role of public sector cannot be ignored "

1. INDIAN ECONOMIC DEVELOPMENT
ABM-203
Topic:
“Though Privatisation is important , the
role of the Public sector cannot be
ignored “
By : T.Guru Aarat
142063

2. What is Privatisation ??
• Privatisation refers to the transfer of ownership ,
management and control of public sector
enterprises to the entrepreneurs in the private
sector.
• It implies greater role of the private sector in the
economic activities of the economy
• Was introduced in INDIA in 1991 as part of the
NEP 1991.

3. Privatisation can be done in 2 major
ways :
1. Transfer of ownership
1. Market sale

4. Why important ??
• Reduction in Budgetary Deficit
• Competitive Environment
• Quick decision making
• Profit oriented decisions
• Promotes consumers sovereignty
• Increase in Investment
• More employment :: More Income

5. Negatives of Privatisation
• Social welfare neglected
• Natural monopoly
• Lop-sided economic growth
• Lack of transparency
• Corruption and illegitimate practices
• Widespread unemployment
• Inflated prices

6. Why Public Sectors role cannot be
ignored ??
• Rapid Economic Growth
• Development of infrastructure
• Redistribution of income
• Employment generation
• Balanced regional development
• Direct government income
• Compete and keep a check over private sector

7. Conclusion …
• Thus though Privatisation is very important , the
role of public sector cannot be ignored to ensure
emphasis on not only economic growth but also
to ensure its sustainability and development of
economy in a unified and comprehensive manner
.
• We can conclude by saying that both the public
and private sector are essential for the overall
development of the economy .