Lect Topic 3.1 Privatization
Lect Topic 3.1 Privatization
DEPARTMENT: BBA
Bachelor of Business Administration
Business Environment 20BAT- 158
By-Dr. Chitvan Khosla
Privatization
DISCOVER . LEARN .
EMPOWER
Privatization
• The fruits of liberalisation reached their peak in 2007, when India recorded its highest
• With this, India became the second fastest growing major economy in the world, next
only to China.
• The growth rate has slowed significantly in the first half of 2012.
• An OECD report states that the average growth rate 7.5% will double in a decade,
ownership or control and the opening of the closed areas to private sector
entry.
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Advantages
• Privatisation may help in reviving sick units which have become a liability
on the govt.
• It helps the profit making public sector units to modernize and diversify their
business.
• It helps in making public sector units more competitive. Without
government financial backing, capital market and international market
forces public sector to be efficient.
• It reduces political influence on decision- making of managers.
Disadvantages
• Privatisation encourages monopoly, power in the hands of big business houses
and thus greater disparities in income and wealth.
• Privatisation may result in lop-sided development of industries in the
country.
• The limited resources of the private individuals cannot meet some of the vital
tasks which alter the very character of the economy.
• The private sector may not uphold the principles of social justice and public
welfare.
Disinvestment
Share value went up from Rs. 2138 on 30th Dec.(prior to sale) to Rs. 3247 on 25th
Feb.(post sale).
• Paradeep Phosphates Limited (PPL)
Net profit: pre sale= Rs. -57.95 Cr., post sale= Rs. 23.96 Cr.
• Bharat aluminium company limited (BALCO)
• Hotel Corporation of India limited (HCI)
• Hindustan Zinc limited (HZL)
Globalisation
• Economic globalization is the increasing economic interdependence of national
economies across the world through a rapid increase in cross-border movement of
goods, service, technology and capital.
• It is a process which draws countries out of their insulation and makes them join
rest of the world in its march towards a new world economic order.
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APPLICATION
• Application of business environment can be as follows:
1. In area of Economic affairs
2. In analyzing business situations
3. Tackling the competition in business
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REFERENCES
• Reference Books-
• Mithani, D. M., International Economics, Himalaya Publications, New Delhi.
• Vaish, M. C. and Sudama Singh, International Economics, Oxford & IBH
Publishing Co. Pvt. Ltd
• References of websites-
• google.com
• https://www.toppr.com/guides/business-studies/business-environment/indian-ind
ustrial-policies/
,
https://study.com/academy/lesson/what-is-business-environment-definition-facto
rs-quiz.html
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THANK YOU
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