Question : What was the main reason behind the privatization of public sector enterprises in India?
Option 1: Promoting efficiency and profitability
Option 2: Reducing government expenditure
Option 3: Controlling inflation
Option 4: Encouraging worker participation
Correct Answer: Promoting efficiency and profitability
Solution : The correct answer is (a) Promoting efficiency and profitability
The main objective of privatizing public sector enterprises in India was to promote efficiency and profitability. Public sector enterprises, being owned and operated by the government, often faced challenges related to inefficiency, lack of competition, and bureaucratic hurdles. The privatization process aimed to address these issues by transferring ownership and management to private entities.
By privatizing public sector enterprises, it was expected that the new private owners would bring in managerial expertise, technological advancements, and a profit-oriented mindset, leading to improved efficiency and profitability. The idea was that private ownership would incentivize better performance, encourage innovation, and introduce market-driven practices, resulting in higher productivity and competitiveness.
College Comparison based on Courses, Placement, Rank, Fee
Question : What was the main objective of the Telecommunication Policy of 1999 in India?
Option 1: Encouraging private sector participation
Option 2: Nationalizing telecommunication services
Option 3: Restricting foreign investments
Option 4: Promoting rural connectivity
Question : Which sector was primarily targeted for privatization in India?
Option 1: Agriculture
Option 2: Education
Option 3: Health care
Option 4: Public enterprises
Question : Which of the following is not a measure to reduce rural poverty in India?
Option 1: Increasing agricultural productivity
Option 2: Promoting non-farm employment opportunities
Option 3: Enhancing access to credit facilities for farmers
Option 4: Privatization of public sector enterprises
Question : The 1991 economic policy in India aimed to address:
Option 1: Increasing government control in the economy
Option 2: High inflation and fiscal deficit
Option 3: Excessive privatization of public enterprises
Option 4: Declining foreign direct investment (FDI)
Question : Which organization was established to oversee the process of disinvestment and privatization of public sector enterprises in India?
Option 1: Reserve Bank of India (RBI)
Option 2: Securities and Exchange Board of India (SEBI)
Option 3: Ministry of Finance
Option 4: Department of Disinvestment
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile