Privatization in India

Privatization in India

Author Name : Muskan Gupta, Prathamesh Joshi

ABSTRACT

Privatization generally is defined as the process of transfer of ownership, it can also be permanent or just for the years for which a particular contracted has been drafted between the parties. It is basically a route from public ownership to private ownership. On the other side it is also a strategy that provides advantage to a few at the price of many.In the 1960's and 1970's academicians, economists and politicians favored stateownership over personal possession within the production and provision of products andservices. By the tip of the 1980's, however, there was a reversal of public policy fromstate domination of the assembly and provision of products and services to non-publicownership and operation. This was due partly to what the globe Bank observed as“state failure”, that was characterized by inefficient service delivery, unprofitableSOEs, high government debt, and stagnant economic process rates. Consequently,privatization caught on in several countries as a policy tool to foster potency,encourage investment, free public resources for investment in infrastructure and socialprograms to boost economic process and spatial arrangement equity.This paper also discusses the causes and reasons for privatization to happen in India and what are its pros and cons.