Question

Differentiate Privatisation & Liberlisation concepts

Answer 1

hello !! here is your answer ....

Privatisation:

Privatisation, in simple terms, means encouraging the private sector into various businesses which have been held by the government in the past.

Example: Electricity Companies were previously owned by the government, now we see Tata Power and Reliance Power. So we would say that there has been Privatisation in the area of electricity.

Liberalisation:

Privatisation leads to liberalistaion. Liberalisation is the process where government makes policies in order to help the private organisations and exporters to make it more business friendly.

Example: Before 1990, India had an import duty rate @ 100% of the amount. Infact some products had 200%. Now the rate has been brought down to as low as 30%. This has been done to help in importing the necessary items needed for growth and development. So we can say there has been liberalisation in the area of import export.  

hope it helped :)

Answer 2

Privatization is the transfer of control of ownership of economic resources from the public sector to the private sector. ... Liberalization means elimination of state control over economic activities. It implies greater autonomy to the business enterprises in decision-making and removal of government interference.

THANKS