Which of the following statement (s) is/are correct?

Statement 1: There were quite a few of the public sector firms in India which were originally private firms.

Statement 2: Some of the private firms were nationalised in India to protect the jobs of the workers.

Both the statements are correct.

Many public sector firms incurred huge losses but continued to function because it is difficult to close a government undertaking even if it is a drain on the nation’s limited resources. This does not mean that private firms are always profitable (indeed, quite a few of the public sector firms were originally private firms which were on the verge of closure due to losses; they were then nationalised to protect the jobs of the workers). However, a loss-making private firm will not waste resources by being kept running despite the losses.