Topic Details (Notes format)

Privatization and Disinvestment in India

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

The government occasionally sells stakes in public sector enterprises to reduce fiscal burdens and improve efficiency. Strategic sales (Air India) vs. minority stake disinvestments (LIC IPO) represent varied approaches. Exams may ask about the rationale, potential job impacts, or concerns of undervaluation. Also note public sentiment around strategic sectors (defense, railways) and how proceeds support social spending or deficit reduction, reflecting the balancing act between private efficiency and state control.

Practice Questions

Which of the following is an example of a capital receipt for the government?

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Which of the following is considered a public good?

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What does “balance of trade” refer to?

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Which of the following measures is most effective in controlling inflation?

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What is “inclusive growth”?

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What does the Gini Coefficient measure?

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Which economic concept is described as “the next best alternative foregone”?

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Which of the following statements best defines Gross Domestic Product (GDP)?

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What is “currency devaluation”?

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What is “open market operations” (OMO)?

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