Match List-I with List-II
| List-I (Term/Name) | List-II (Characteristics) | ||
| (A) | Privatisation | (I) | Work which focuses on providing services like trade, transport, financial services etc. |
| (B) | Disinvestment | (II) | Spread of investment into different types of economic activities in order to reduce risks. |
| (C) | Tertiary sector | (III) | Private companies can invest in sectors earlier reserved for the government. |
| (D) | Diversification | (IV) | The government sells its share in public sector companies. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
(A) Privatisation — this matches (III) Private companies can invest in sectors earlier reserved for the government. Since the 1990s, private companies, especially foreign firms, have been encouraged to invest in sectors earlier reserved for the government, such as telecom, civil aviation and power.
(B) Disinvestment — this matches (IV) The government sells its share in public sector companies. The government is trying to sell its share in several public sector companies, a process known as disinvestment.
(C) Tertiary sector — this matches (I) Work which focuses on providing services like trade, transport, financial services etc. The tertiary sector covers trade, transport, financial services and other services, as against agriculture (primary) and manufacturing (secondary).
(D) Diversification — this matches (II) Spread of investment into different types of economic activities in order to reduce risks. Rich farmers who invested their profits from agriculture in other business ventures are an example: putting money into several activities spreads the risk.
Note: One item of this match fits more than one entry:• (A) Privatisation → both (III) and (IV). Privatisation is explained as ‘selling government-owned companies to private companies’, and the glossary defines disinvestment as ‘Privatisation of public sector or government companies’, which is entry (IV). The opening of sectors earlier reserved for the government to private companies, entry (III), is described as part of the policy of liberalisation.
NCERT (2025-26): “Globalisation, Liberalisation and Changes in Indian Industry … Since the 1990s, the government has followed a policy of liberalisation. Private companies, especially foreign firms, are encouraged to invest in sectors earlier reserved for the government, including telecom, civil aviation, power, etc.…” “…The government is trying to sell its share in several public sector companies, a process which is known as disinvestment.…” “5.2 Industrialisation in India … In India, in 2018–19, nearly 43% were employed in the primary sector (agriculture and mining), 17% in the secondary sector (manufacturing, construction and utilities), and 32% in the tertiary sector (trade, transport, financial services, etc.)…” “…The globalisation of the Indian economy has been due primarily to the policy of liberalisation that was started in the late 1980s. Liberalisation includes a range of policies such as the privatisation of public sector enterprises (selling government-owned companies to private companies); loosening of government regulations on capital, labour, and trade; a reduction in tariffs and import duties so that foreign goods can be imported more easily; and allowing easier access for foreign companies to set up industries in India.…” “Glossary … Diversification: Spread of investment into different types of economic activities in order to reduce risks.…” |