Q. With reference to Disinvestment in India, consider the following statements:
1.Disinvestment has been used as a tool for public sector reforms.
2.It was initiated solely to reduce the fiscal deficit through non-tax revenue generation.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- Disinvestment has been used as a tool for public sector reforms, aimed at improving efficiency and promoting private sector participation.
- While resource generation was one of the motivations, disinvestment was also linked to broader economic reforms and de-reservation of industries, not solely fiscal deficit reduction.
Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh
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