Question

What  is  Privatisation?

TNSCERT Class 10 Economics Ch 2 Indian Economy After Independence

Answer 1

Privatisation is the modern economic concept wherein the ownership of an entity, business, property is transferred from the government sector to the private sector.

By doing so, the government is no longer the owner of the entity and the entire control is under an individual or a private organisation.

Answer 2

Privatization is the act of transferring or passing the ownership or the control of a government company, factory, etc. to under a private control i.e. under a private ownership.

In such a case, government can no more have ownership rights over the company, factory, institution, industry, etc.

Generally, privatization leads to the improvement in various parts of the company as a private ownership aims at better efficiency of the company by implementing various strict rules.

The title of the company changes from " Ltd. " to " Pvt. Ltd. ".