Privatizations and

Globalization

Presentation By – Kartik Gupta

What is Privatization ?

• Privatization refers to the process of

transferring ownership or control of
public assets, industries, or services
from the government to private
entities. It involves the sale, lease, or
contracting out of public enterprises or
services to private businesses.
• It aims to enhance efficiency, attract
private investments, and improve
service quality.
Advantages of
Privatization
• Increased efficiency and competitiveness.

• Infrastructure development through

private investments.

• Improved service quality and customer

satisfaction.

• Access to specialized expertise and

advanced technologies.
Limitations of
Privatization in India

• Monopolistic Practices: Risk of reduced

competition and consumer harm.

• Job Losses and Inequalities: Potential for

unemployment and social disparities.

• Lack of Accountability and Corruption: Need

for strong regulations to prevent corruption.
Privatization in India

Air India
• Air India, the national carrier of India,
underwent privatization in 2021.

• The Indian government sold a majority stake

in Air India to a private entity.

• The objective was to improve operational

efficiency and financial viability.
Privatization in India

Hindustan Petroleum Corporation Limited (HPCL)

• HPCL, a major oil and gas company in India,

underwent privatization in 2003.

• The government sold a majority stake in HPCL

to a private entity.

• The privatization aimed to improve the

company's efficiency, competitiveness, and
attract private investments.
What is
Globalization ?
• Globalization is the increasing
interconnectedness and integration of
economies and societies worldwide. It is
characterized by the flow of goods,
services, capital, and information across
national borders.
• It involves the breaking down of barriers
to trade, investment, and communication,
resulting in a more interconnected global
economy.
• Let’s know about it while taking our
country [INDIA] as example.
Globalization in India
• India has embraced globalization as part of
its economic reforms and liberalization
policies, which were initiated in the 1990s.
• Globalization has had a significant impact
on various sectors of the Indian economy,
including information technology (IT),
manufacturing, services, and agriculture.
• The liberalization of trade policies, foreign
direct investment (FDI) inflows, and
advancements in communication
technology have played a key role in driving
India's integration into the global economy.
Benefits of
Globalization to India

• Increased Economic Growth: Expanding

trade, foreign investments, and innovation.
• Job Creation and Skill Development:
Growing employment and skill
enhancement.
• Technology and Knowledge Transfer:
Advancements in IT, research, and
manufacturing.
• Improved Standard of Living: Access to a
wider range of products and services.
Limitations of India in
Globalization

• Infrastructural Challenges: Transportation,

logistics, and power supply hurdles.
• Socioeconomic Disparities: Income inequalities
and regional imbalances.
• Vulnerability to Economic Fluctuations: Impact of
global downturns and volatility.
• Cultural and Social Concerns: Erosion of
traditional practices and values.
Conclusion
• Despite all the good work done, there will always be
individuals who tend to criticize the government for
every decision and action taken.
• As students, let us appreciate the government's role in
shaping our nation's progress and development.
THANK YOU