Explain the main features of privatization on indian economy

Privatization was characterized by the following features:

a. The new set of economic reforms aimed at giving greater role to the private sector in the nation building process and a reduced role to the public sector.

b. To achieve this, the government redefined the role of the public sector in the New Industrial Policy of 1991.

c. The purpose of the same, according to the government, was mainly to improve financial discipline and facilitate modernization.

d. It was also observed that private capital and managerial capabilities could be effectively utilized to improve the performance of the PSUs.

e. The government has also made attempts to improve the efficiency of PSUs by giving them autonomy in taking managerial decisions.

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