Question

Opening doors for private sector in the area reserved for public sector is known as
Globalization
privatisation
liberalisation
None of the above​

Answer 1

Privatization

Explanation:

Opening doors for private sector in the area reserved for public sector is known as Privatization. It basically refers to the transfer of ownership or control of public sector undertakings to the entrepreneurs in the private sector.

Over the years, Indian government has diluted its stake in several public enterprises, including IBP, IPCL, etc.

Measures of Privatization:

• Transfer of ownership or control of public sector units from government to private companies.
• Selling off a part of the equity of public sector undertakings (PSUs) to the public. This is called Disinvestment.

The aim of privatization is to improve financial condition of the country and facilitate modernization. This also improves performance of PSUs.