Exams › SSC CGL (Prelims) › General

In the context of the Indian economy, disinvestment refers to:

1. Acquiring private companies by the government
2. Selling government equity in public enterprises to private parties
3. Closing down all loss-making public units
4. Merging public sector banks with the central bank

Correct answer: Selling government equity in public enterprises to private parties

Solution

Disinvestment means the government sells part or all of its equity stake in public sector enterprises. It is a way to reduce government ownership and raise funds. It is not the same as shutting down units or merging banks.

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