Is Privatisation good or bad for India Quora?

Privatization is good in the case of private goods especially those aimed at non-poor, and those which do not have positive externalities. Though privatization is possible in the case of certain services like electricity or water supply, there are practical difficulties in India.

Is government privatization good or bad?

Within the United States, an impressive array of cities and local governments has made effective use of privatization to improve efficiency, increase competition, and reduce expenditures. Chicago also found that competition from the private sector could create incentives for public managers to be more effective.

What are disadvantages of Privatisation?

Disadvantages of Privatization

• Problem of Price.
• Opposition from Employees.
• Problem of Finance.
• Improper Working.
• Interdependence on Government.
• High-Cost Economy.
• Concentration of Economic Power.
• Bad Industrial Relations.

What are the arguments for privatisation of the government?

The main argument for privatisation is that private companies have a profit incentive to cut costs and be more efficient. If you work for a government run industry managers do not usually share in any profits.

Is privatization good or bad for the country?

Privatization is good in overall development of the country. Otherwise Government should run the organisation efficiently. As we all know, Government will have different politicians to rule every five years and understanding the basic needs of any Government sector will takes time. Hence it is better to go for privatisation.

What are the pros and cons of private sector versus government?

When you work for a government, managers of the industry usually do not share any profits. However, a private company wants to make a profit, so cost-cutting and efficient is more likely. Businesses like BT and British Airways have seen improved efficiency and higher profitability since privatization. 2. Missing political interference

What are the main problems with the private sector?

Another problem with the private sector is that its cost, in general, are large and the price of products are unduly high. Barring a small proportion of companies that are efficient and show a good profitability ratio, many are insufficient.