Question

Distinguish between the following:

1. Liberalisation and privatisation

2. Public sector and private sector

3. Agriculture and industry

Answer 1

1.

Basis of Difference	Liberalisation	Privatisation
Meaning	Refers to the freedom of the economy from direct or physical controls (such as, industrial licensing, price control, import licence, etc) imposed by the government	Refers to the process of increasing the involvement of the private sector in the ownership or operation of a state-owned enterprise
Measures taken	Measures taken- delicensing policy, encouraging FDI, passing FEMA, establishing SEBI, etc.	Measures taken- dereservation policy, establishing BIFR, NRB, disinvestment, etc.

2.

Basis of Difference	Private sector	Public sector
Ownership	The ownership of industry/assets is in the hands of private individuals.	The ownership of industry/assets is in the hands of government.
Motive	Activities are guided by the motive of earning profits	Activities are guided by welfare motive.
Example	Tata Iron and Steel Company Limited (TISCO) and Reliance Industries Limited (RIL)	Railways and postal service

3.

Basis of Difference	Agriculture	Industry
Meaning	It is the sector that directly uses the natural resources. materials for consumption or for re-use in other industries	It is the sector that uses the products of the primary sector for it to be processed further into final products.
Another name	Primary sector	Secondary sector.
Examples of produce of the sector	Food grains, cotton, oil seeds, etc.	Clothing, oil, etc.