Question

explain privatisation of industries and nationalisation of banks with reference to present scenario​

Answer 1

The nationalisation of banks was pivotal to a wider policy of political economy in the 1970s — a decade in which economic development slightly outperformed population growth

In 1991 , India modified its economic policies majorly.  Stagnation and slow economic growth occurred. The finance minister had implemented several big structural reforms to deal with these issues. This was considered privatisation

Explanation:

With reference to the present scenario there has been both positive and negative impact of nationalisation

Positive

1. Nationalization aimed at promoting fast growth in manufacturing, small-scale industry and exports, attracting new businesses and expanding all backward areas.  
2. The nationalisation of banks has also improved banks' penetration. This has been primarily seen in rural India and also in the country's remote corners.  
3. There was a boost in sectors which lagged behind, such as small industries and agriculture. This lead to a rise in investments and thus a rise in India's economic growth.  
4. The performance of the banking system in India increased because of the nationalisation of banks. This boosted the public in banks' confidence.

Negative

1. Poverty has not been eradicated and income, wealth and entitlement inequality have not been reduced, particularly in rural India.
2. Increasing the number of deposits and the success of nationalised banks on branch expansion criteria however has not surpassed that of private banks.
3. While nationalisation of banks was undertaken to extend bank facilities to rural areas, financial inclusion was increased only after Jan Dhan Yojana was introduced.\

Privatisation of Industries

With reference to the present scenario there has been both positive and negative impact of privatisation

Positive Impact

• In the competitive sectors, privatisation induced important fundamental improvements.  Privatization led to global best practise, management and encouragement for best human skills to promote sustainable competitive edge and improvised resource management.
• The private sector 's financial growth, was positively impacted by the decrease in deficits and debts. It improved the industry's efficiency levels in general.
• Privatized businesses had better and fast customer support and developed the country's global infrastructure.

Negative

• The private sector relies more on maximising profit and less on social targets unlike the government sector that initiates economically sustainable modifications in disaster situations and critiques. Private business needs transparency and customers are unable to get all the details about the company's capabilities
• Privatization offers the government and private bidders with needless funding for collusion and illegitimate forms to carry out licences and commercial agreements. Lobbying and corruption are the common problems which weaken the efficacy of privatisation.

To know more

Difference bwtween nationalisation and privatisation of banks ...

https://brainly.in/question/14639997