Q3General Studies
Question
2 marks
[CO1] State the meaning of Privatisation.
Answer
Privatisation means the transfer of ownership, management, and control of public sector enterprises to private individuals or organisations.
- Sale of public sector units (PSUs) to private investors
- Disinvestment — government selling its equity stake
- Contracting out government services to private firms
- Aims to improve efficiency, reduce fiscal burden, and attract investment