Topics: CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books

Disinvestment Definition

Question

Privatisation of public sector enterprises by selling off part of the equity to the public is known as:

Select an answer

Privatisation of public sector enterprises by selling off part of the equity to the public is known as:

  1. Nationalisation
  2. Disinvestment — Correct Answer
  3. Liberalisation
  4. Globalisation
Explanation:
Correct Answer Explanation

Selling off part of the equity of PSEs to the public is known as disinvestment.

Key Points:
  • Purpose: Improve financial discipline and facilitate modernisation.
  • Envisaged that private capital and managerial capabilities could improve PSU performance.
  • Government expected it would provide impetus to FDI inflow.

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This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.

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