2. Meaning
Privatization is the process of
transferring ownership of a business,
enterprise, agency, public service or
public property from the public sector
to the private sector.
When the Ownership Management
and Control of Business and Industrial
in the hand of Private enterprises it is
called Privatization
3. WHY PRIVATIZATION?
To reduce government involvement in
commercially viable activities.
Increase efficiency in the delivery of
programs and services.
Provides competition in market place
which transfers the lower price and
greater choice for the consumers.
4. Impact Of Privatization On
Indian Economy
It frees the resources for a more
productive utilization.
Reduce the government's financial and
administrative burden.
Permit the private sector to contribute
to economic development
Effectively minimizes corruption and
optimizes output and functions
5. Industries which are not
reserved for private
Indian Atomic
Indian railways
Chemical Arms
fertilizers
Hazardous ammunition chemicals
Cigarette
6. Objective
The emergence of multinational
entities
Technological changes
Emergence of local capital market and
entrepreneurship
Dissatisfaction with performance of
public sector
7. Merits of privatization
Minimum Cost Of Production-As a
Private Sector Encouages maximum
and most efficient utilisation of
resources
Higher Capital formation-try to save
major part of Income so that may
invest in there business.
Improve service quality
Lower prices
Employment Increase
efficiency and innovation
Use of updated technology which helps
to reduce wastage
8. DEMERITS OF PRIVATISATION
Social Welfare is Ignored
Wastage due to Competition
Class Struggle(rich and poor)
Decline of Competition
