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Privatization does not necessarily increase competition; it may lead to monopolies or oligopolies in certain sectors. However, it improves efficiency, reduces government control, and provides additional revenue for the government. Key Points: 1. Privatization transfers ownership from the public to the private sector. 2. Leads to increased efficiency due to profit motives. 3. Can result in monopolies without proper regulatory mechanisms. 4. Helps governments reduce fiscal burdens. 5. Examples include telecom, aviation, and power sectors in India. Bee Facts: • Increased competition (a): Incorrect; may not always result from privatization. • Improved efficiency (b): A primary benefit of privatization. • Reduces government revenue dependency (c): True; government earns through disinvestment. • Reduced government interference (d): Encourages market-driven decisions.
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