Question

Arguments in favour of privatisation

Answer 1

Answer:

The main arguments for privatisation includes: Efficiency gains. When firms are privately owned, there is a greater profit incentive to increase efficiency. In the private sector, managers are accountable to shareholders, who will want a good return on their investment.

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Answer 2

$\mathbb{ANSWER}$

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Arguments for privatisation are as follows :-

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•Poor performance of Public enterprises :- In a view of poor performance of public sector undertakings, public sector has become an economic burden on the national economy.

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•High capital output ratio :- The capital output ratio in the economy has been increasing particularly for public sector. It is likely to increase further. High capital output ratio in public sector demands privatization.

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•Rise in Prices :- The prices in India are increasing considerably day by day. To reduce prices, the scope of public sector should be contracted.

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