Question
Mention the benifits and limitations of privatization.

Answer


Advantages of privatization:
Privatisation led to an increase in the number of production units in the industrial sector. It resulted in increase in production in capital intensive and consumer industries. Privatization of public sector units led to efficient and fullest utilization of producing capacity of these units.
Disadvantages of privatization:
Concentration of economic power led to increase in the evil of monopoly. It adversely affected the development of cottage industries. Privatization has led to inflation.

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