PRIVATIZATION OF

GOVERNMENT ASSETS

SALONI SINGH
(PGDM BATCH 2021-23)
LAL BAHADUR SHASTRI INSTITUTE
OF MANAGEMENT AND
TECHONOLOGY, BAREILLY
OUTLINE
 INTRODUCTION
MEANING OF PRIVATIZATION
WHY PRIVATIZATION?
ADVANTAGES
DISADVANTAGES
STAGES
METHODS
 IMPACT ON INDIAN ECONOMY
CONCLUSION
REFERENCE
INTRODUCTION
One of the most ambitious plans to emerge from India’s
recently announced Union budget was the government’s
proposal to privatize state-owned companies in the coming
years. This is an important step in India’s program of reforms
to achieve long-term sustainable growth. As Prime Minister
Narendra Modi put it recently, the government would be less
involved in the business of business, and asset monetization
and privatization will empower Indian citizens, enhance India’s
infrastructure, and increase economic efficiency.
HIGHLIGHTS FROM
PM MODI’S SPEECH

GOVERNMENT HAS NO BUSINESS TO BE IN

BUSINESS.

MANTRA OF MONETISE AND

MODERNISE.
 MEANING
 Privatization is the process of transferring ownership of a
business, enterprise, agency, public service or public
property from the public sector to private sector.

It also means the withdrawal of the state from an industry

or sector , partially or fully.

The business that operates for profit or non profit

organization.
WHY Privatization??
 To reduce government involvement in
commercially viable activities.

 Increase efficiency in the delivery of programs

and services.

Provides competition in market which transfers

the lower price and greater choice for the
consumer.

 Ensure business stability.

ARGUMENTS IN FAVOUR
OF PRIVATIZATION
Increases efficiency

Lack of political interference

May attract more highly qualified people

Helps government to concentrate on essential state function

Better management of entrepreneurship

Acceleration of technical progress

ARGUMENTS AGAINST
PRIVATISATION
• Investments in industries of comfort and luxurious product
instead of necessary product .

•Aims at making profit.

•Problem of unemployment

•Harmful if the business has a monopolistic character

STAGES OF
PRIVATIZATION
DEREGUL
ATION

DISPLACE
MENT

DISINVES
TMENT
METHODS OF
PRIVATIZATION
SHARE
ISSUE
ASSET
SALE
FRANCHISING
 VOUCHER
PRIVATIZATION

OPEN
COMPETETION

CONTRACTING
IMPACT OF
PRIVATIZATION
 Private concerns tend to be profit oriented and transparent in their functioning
as private owners are always oriented towards making profits .

 The system becomes more transparent all fundamental corruption are

minimized .

 Lessen the government's financial and administrative load.

 Effectively minimizes corruption and optimizes output and functions.

 Development of the general budget resources and diversifying sources of

income.

 Permit the private sector to contribute to economic development.

CONCLUSION
Government of India chose for a mixed economy in
which both public and private sectors were
permitted to operate. The Government of India
recognizes that it would be desirable to allow such
undertakings to develop with as much freedom as
possible, consistent with the targets and objectives
of the national plan.
REFERENCES
•The Times of India

• The Economic Times

•bsepsu.com

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