Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

What has been the criticism of the disinvestment of public sector enterprises (PSEs)?

Options:

Undervaluation of PSE assets

Lack of private sector interest

Insufficient revenue generation

Ineffectiveness in improving efficiency

Correct Answer:

Undervaluation of PSE assets

Explanation:

The correct answer is Option 1: Undervaluation of PSE assets

Critics argue that the assets of PSEs have been undervalued and sold to the private sector, resulting in substantial losses for the government. The proceeds from disinvestment are often used to offset revenue shortages rather than being utilized for the development of PSEs and social infrastructure.