Privatization in India, introduced in 1991, involves transferring businesses and services from public to private ownership to improve efficiency and attract investment. Its goals include restructuring the public sector, creating jobs, and optimizing resource use, resulting in significant GDP growth and increased foreign direct investment across various sectors. However, it also poses challenges such as the potential for natural monopolies, regulatory issues, and overlooking weaker societal segments.

1. Presented by:- Tushar Vishnoi (PSIT college of engineering)

2. PRIVATIZATION
The transfer of a business, industry, or service
from public to private ownership and control.
Introduced in India in 1991.

3. METHOD OF PRIVATIZATION
Sale of the entire entity
Initial public offering
Management control

4. OBJECTIVE
 To restructure public sector.
 It creates more jobs.
 Attracts more national and international
investors.
 To make optimum use of resources.

5. BEFORE & AFTER PRIVATIZATION
 GDP 3.5% - 7.5%
Rupee Devaluation 7.5 – 67
 Licence Raj
 No of bank branches 8,262 – 45,898
Agriculture credit 162cr – 4,46,496cr

6. FDI PERCENTAGE
100%
Telecom, Single brand retail, Agriculture, Courier service,
Education, Railway infrastructure, Tourism, Pharma,
Food-Products, Civil aviation, Automobile.
49%
Insurance, Stock exchange, Private security, Pension,
Petroleum refining, Power exchanges, Defence(CCS),
0%
Gambling and Betting, Lottery business, atomic energy , Railways,
Real estate business, Manufacturing of tobacco & cigars &
cigarettes.

7. ADVANTAGES
Improved efficiency.
Reduce the burden on govt.
Industrial growth.
Increased competition.
Increase the FDI & FII

8. DISADVANTGE
• Natural monopoly.
• Public interest.
• Problem in regulating
private monopolies.
• Ignores the weaker
sections.