Privatization: Privatization means the transfer of managerial control of any public sector units to any private entrepreneur or to any private corporate body is called privatization.
Arguments against Privatization in India are:
1. Social welfare aspect is neglected: Main motive of the private sector enterprises is to earn maximum profits. Thus, the social welfare aspect is being neglected.
2. Growth of monopoly power: Privatization may lead to the growth of monopoly power in the industry and services sectors. The weak Indian companies may either be closed down or taken over by some big companies. Ultimately the monopoly power of multi-national companies will grow more and more which would not be in the interest of economic development.
3. Misutilization of resources: The private sector in India has been wasting away valuable resources in the name of securing profits by opting for obsolete technology and producing shoddy products. It depends entirely on Government technologies or imported know-how.
