Question : Statement 1: Over the years, Indian Government has increased its stake in several public enterprises.
Statement 2: Privatization implies a greater role of the private sector in the economic activities of the country.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer: Statement 1 is false, and statement 2 is true.
Solution : The correct answer is (d) Statement 1 is false, and statement 2 is true.
Statement 1 is false: Over the years, the Indian government has undertaken disinvestment or divestment of its stake in several public enterprises, reducing its ownership and promoting private sector participation.
Statement 2 is true: Privatization implies a greater role of the private sector in the economic activities of the country. It involves transferring government-owned enterprises to private ownership and management.
Question : Statement 1: Privatization refers to the transfer of government-owned enterprises to the private sector.
Statement 2: Disinvestment refers to the acquisition of private enterprises by the government.
Statement 2: Disinvestment refers to the sale of private enterprises to the government.
Question : Statement 1: Privatization of public enterprises aimed to improve their efficiency and profitability.
Statement 2: Disinvestment refers to the acquisition of government-owned enterprises by the private sector.
Question : Statement 1: The 1991 economic policy in India aimed to liberalize the Indian economy.
Statement 2: Liberalization refers to the reduction of government restrictions on economic activities.
Question : Statement 1: Globalization refers to the increasing integration of economies and societies worldwide.
Statement 2: Globalization promotes the localization of economic activities.
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