Why were the public sector undertakings sold off to the private sector after 1991?
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Many of the public sector undertakings were sold off to the private sector after 1991 due to the following reasons:
- The purpose was mainly to improve financial discipline and facilitate modernisation.
- It was also envisaged that private capital and managerial capabilities could be effectively utilized to improve the performance of the PSUs.
- The government envisaged that privatisation could provide strong impetus to the inflow of FDI.
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