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 is the largest source of tax revenue for the Government of India?

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What is “inflation targeting”?

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

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What is “quantitative easing”?

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Which of the following measures can reduce a trade deficit?

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What does “inclusive banking” mean?

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What is a “repo rate”?

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What is the objective of the Pradhan Mantri Jan Dhan Yojana?

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What does the term “national income” refer to?

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What does “primary sector” of the economy include?

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