Economics · Privatization and Disinvestment
Over the past few decades, India's civil aviation and public sector policies transitioned from state-monopoly operations to opening up FDI, promoting low-cost carriers, and executing strategic disinvestments of loss-making Public Sector Enterprises (PSEs). What does the 'Strategic Disinvestment' of state-owned commercial enterprises primarily signify regarding the changing role of the government in the economy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It reflects a constitutional failure to provide subsidized commercial services directly through government ownership.
- 2It indicates an intention to utilize divestment funds solely to establish new regional state-monopoly enterprises.
- 3It signifies a transition toward the principle that 'The Government has no business to be in business,' prioritizing regulation and infrastructure over commercial operation.✓
- 4It demonstrates that competitive commercial sectors are inherently unsafe for private entities to manage.
Correct answer
It signifies a transition toward the principle that 'The Government has no business to be in business,' prioritizing regulation and infrastructure over commercial operation.
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