OTHERS

Privatization and its effect on economy

Privatization and its effect on economy

                                                               Privatization refer to selling of government companies, venture, organization to private sector. By this government loses control and authorities from the organization  that have been privatized. There can be many reason for that like “financial illness of organization, not effective working of organization and the main reason is to increase  the GDP rate of economy. In starting  year of independence government was not in favor of privatization so they tried to take hold of every industry in government sector but now table has turned fully. In 1991 reform privatization was started and government organizations  was sold to private sector. Government gave authority and power  to private sector  to open there own form and organization. Now private sector  have access to open there start-up in any industry expect  some confidential industry such as arm defense, railways. Private sector get bank loan easily to develop a  start -up and get many other advantages by government. Government  show least interference  in private  sector. It has made great  impact on Indian  economy from many past year and will make in future.

Some of the impact of privatization in Indian economy are-

  1.  GDP “gross domestic product “ has increased in a rapid rate after privatization. Production rate has increased  which is leading to more demand and satisfaction.
  2. Money flow in the economy has increased as people has started to invest in new venture and start up, so money flow has increased.
  3. Now private  sector has entered banking sector so banks have increased  in the economy so people get start up loan  or any loan easily a less rate of interest.
  4. Private sector  was allowed to invest  there money so many  MNCs entered Indian market so new technologies  are always in trending  part. People use new latest technology to reduce production cost. New technology was always demanded and will be demanded in future also.
  5. After privatization many organizations was developed so people got new employment opportunities. Many unemployed was given  work which  definitely lead to low poverty rate in country.

Kushagra Dhingra BBA TIAS New Delhi

Rashmi Gujrati

Prof. Dr. Rashmi Gujrati , Professor, Institute: Management College. India Qualification: M.com, MBA, Ph.D. Specialization: Marketing, Finance & International Business Regulatory board Member of InTraders Academic Platform • Life member of India Commerce Association • Life member of Indian Accounting Association • Life member of Association of Indian College Principals • Member of Foundation Social Science Research FSSER Malaysia Reviewer Committee member of IBIMA Association Spain. • Scientific & Review committee, Advisory Board, Editorial research projects of AASE as a trainer/consultant/researcher AASE Member Chung Yaun Christiana University Taiwan.

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