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

What is “currency devaluation”?

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What is meant by “stagflation”?

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Which of the following is NOT a function of the World Trade Organization (WTO)?

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Which of the following is an example of a non-renewable resource?

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Which of the following is a feature of a command economy?

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Which of the following is an example of fiscal policy?

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What is “inflation targeting”?

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Which term refers to an economy that has elements of both capitalism and socialism?

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What is meant by “liquidity trap”?

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What is meant by “marginal propensity to consume”?

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