What measures were taken towards privatisation in 1991?
What measures were taken towards privatisation in 1991?
The New Economic Policy was introduced with the objective to deregulate the economy and ensure economic development. So privatisation was crucial for the success of this policy as it ensures high productivity, a competitive environment which promotes innovation and efficiency, diversification of activities and consumer sovereignty. In order to encourage the private sector, the following measures have been adopted:
(i) The government through its economic policy reduced the number of industries reserved for the public sector from 17 to 3 at present.
(ii) It has now been planned to reduce the share of public sector investment to 45 %. It increases the share of the private sector to 55%.
(iii) Financial corporations cannot force the industries for conversion of their loans into equity shares.
(iv) It has now been decided to increase the participation of the general public and workers by selling them the shares of public enterprises.
The New Economic Policy was introduced with the objective to deregulate the economy and ensure economic development. So privatisation was crucial for the success of this policy as it ensures high productivity, a competitive environment which promotes innovation and efficiency, diversification of activities and consumer sovereignty. In order to encourage the private sector, the following measures have been adopted:
(i) The government through its economic policy reduced the number of industries reserved for the public sector from 17 to 3 at present.
(ii) It has now been planned to reduce the share of public sector investment to 45 %. It increases the share of the private sector to 55%.
(iii) Financial corporations cannot force the industries for conversion of their loans into equity shares.
(iv) It has now been decided to increase the participation of the general public and workers by selling them the shares of public enterprises.
