Please enable JavaScript.

Coggle requires JavaScript to display documents.

Features of new Economy Policy (1.Liberalisation (Features ((i) Freedom…

- - - - It provides the chance to the private sector to operate in economic activities freely.
    - - Privatization is a process which goes on continuously. It cannot be completed in a certain period.
    - - The concept of privatization has emerged not only in India but it has developed all over the world.
    - - The private sector is being developed in place of the public sector in the process of privatization.
    - - Privatization is a new concept which has emerged in the last two decades.
  - - - The**re are many industries which perform an important public service, e.g., health care, education and public transport**.
    - - Therefore, there is still need for government regulation, similar to under state ownership.
    - - This means the government misses out on their dividends, instead going to wealthy shareholders.
    - - A natural monopoly occurs when the most efficient number of firms in an industry is one.
  - - - generate financial resources for the government in order to generate resources disinvestment of public **sector enterprises**.
    - - Public Enterprises become synonyms bureaucracy. They can be made from bureaucracy by the process of privatization.
    - - Privatization creates a situation of competition for public Enterprises and they are forced to improve their efficiency.
    - - It has been observed that the public sector has failed in the optimal use of national resources.
    - - The private sector can improve productivity by maintaining efficiency in its operations.