The Union Cabinet has given an ‘in-principle’ nod to divest stakes in Air India — a wholly government-owned airline. This means the government is willing to shed a substantial portion of its stake and hand over the management of the ailing airline to the private sector. Identify the concept being described in the above lines.

Liberalisation Privatisation Globalisation Demonetisation

Privatisation

The concept being described in the above lines is Privatisation. Privatisation is the process of transferring ownership and control of a government-owned enterprise or service to private ownership. In the context of the given lines, the Union Cabinet's "in-principle" nod to divest stakes in Air India indicates a willingness to reduce the government's ownership and involvement in the airline. The government is considering handing over the management of Air India to the private sector, which is a step towards privatisation. This move is often undertaken to improve efficiency, enhance competitiveness, and bring in private sector expertise to manage and revitalize ailing or inefficient public enterprises.