Liberalisation, Privatisation And Globalisation — Economics STD 12 Commerce — Question

No, I do not agree with this view. Even though disinvestment would increase the revenue of the government, the profit-making industries should be retained in the public sector since they raise resources from the capital market which government can use for the development of PSUs and the infrastructure.

• The assets of the profit-making industries if undervalued might lead to a substantial loss to the government if sold to the private sector.
• The government should retain the strategic industries to avoid emergence of any monopoly in the private sector.