Privatization in India through disinvestment refers to:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Selling part of government equity to public or private entities.
In India, disinvestment is a strategic policy where the government dilutes its stake in Public Sector Undertakings (PSUs). This process involves selling a portion of the government’s shareholding to private investors, institutional buyers, or the general public.
The primary objectives are to reduce the fiscal burden on the exchequer, introduce private-sector efficiency, and encourage modernization through better management practices. Unlike "closure," disinvestment allows the entity to continue operations under a different ownership structure, often leading to improved corporate governance and competitiveness in the global market.