Lesson eLearning

Define 'privatization' as per the 1991 economic reforms and mention any two public sector undertakings that were privatized after 1991.

medium 2 marks Class 12 · Economics · Economic Reforms Since 1991
Answer
Privatization is the transfer of ownership/control of public enterprises to private hands; examples: Maruti Suzuki Ltd. and VSNL.

Step-by-step solution

  1. State the definition: transfer of ownership or control from the government to private entities (why).
  2. Identify notable PSUs that underwent this transfer after 1991 (why).
  3. Provide two examples – Maruti Suzuki Ltd. and VSNL – to illustrate the definition (why).
Common mistake: Confusing privatization with mere disinvestment of a minority shareholding.

Concept tested: Privatization definition and examples

Published · How this solution was prepared and checked

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