Read the following passage and answer questions that follow.
Clamouring to enter India's red-hot retail sector, the world's largest chains, including Walmart stores, Carrefour and Tesco, are seeking the best way to enter the country, despite a government ban on foreign direct investment in the market. Recent large investments by major Indian businesses, like Reliance Industries and Bharti Airtel, have increased the sense of urgency for foreign retailers....Last week, Bharti Airtel indicated that it was in talks with Wal-Mart, Carrefour and Tesco to set up a retailing joint venture....India's retail sector is attractive not only because of its fast growth, but because family-run street corner stores have 97% of the nation's business. But this industry trait is precisely why the government makes it hard for foreigners to enter the market. Politicians frequently argue that global retailers would destroy thousands of small local players and fledging domestic chains.
The government is trying to sell its share in several public sector companies, a process which is known as:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Disinvestment
Option (2) Nationalisation — Incorrect. Nationalisation is the opposite movement: the government takes over private companies or industries and brings them under public ownership. Selling the government’s share takes companies out of public ownership.
Option (3) Disinvestment — Correct. The government is trying to sell its share in several public sector companies, a process which is known as disinvestment. Many government workers fear losing their jobs after disinvestment; in ‘Modern Foods’, the first company to be privatised, 60% of the workers were forced to retire in the first five years.
NCERT (2025-26): “Globalisation, Liberalisation and Changes in Indian Industry … The government is trying to sell its share in several public sector companies, a process which is known as disinvestment. Many government workers are scared that after disinvestment, they will lose their jobs. In ‘Modern Foods’, which was set up by the government to make healthy bread available at cheap prices, and which was the first company to be privatised, 60% of the workers were forced to retire in the first five years.…” |