Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion (A): The disinvestment policy has been widely criticized in India.
Reason (R): It resulted in increased market monopoly by public sector undertakings.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. A is true but R is false.
Assertion (A) is correct because the disinvestment policy in India has faced significant criticism from labor unions and political groups, who argue it leads to the loss of national assets and job insecurity. However, Reason (R) is incorrect because disinvestment involves the government selling its stakes in Public Sector Undertakings (PSUs) to private entities. Instead of increasing PSU monopolies, this process is designed to reduce government control, encourage private competition, and often results in shifting market dominance from the public sector to private players.