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 measures can reduce a trade deficit?

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

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What is the main function of the Reserve Bank of India (RBI)?

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What is meant by “crowding out” in economics?

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Which of the following is an example of fiscal policy?

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Which of the following is NOT a component of Aggregate Demand?

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What is “inflation targeting”?

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What is the meaning of “disguised unemployment”?

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What is “CRR” in banking terminology?

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What is meant by “structural unemployment”?

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