New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the statements are correct? 1) Process

    of disinvestment is very fast 2) Process of disinvestment is very slow and government always falls short of target 3) Government disinvesting its share in various public sector undertakings
    A Only 1 Correct Answer Incorrect Answer
    B Only 2 Correct Answer Incorrect Answer
    C 1 and 2 Correct Answer Incorrect Answer
    D 2 and 3 Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Solution: Government of India is divesting its share from public sector undertakings. Most of government undertakings were incurring losses during the pre-liberalization period. Hence, after the introduction of new economic policy in 1991, government started downsizing its share in PSU. But the process of disinvestment is very slow due to host of legal and political hurdles.

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