Aim of privatization is to make public sector more effective. As Public sector is working well and making losses. So government decided to privatise some sector in two ways- 

  1. By removing government interference from management and ownership of public sector.
  2. By selling loss making public sector.

DISINVESTMENT– Disinvestment policy also adopted by the government. By this government use to sell some part of public sector enterprises. This will help in improving the sector and modernization. Also effective managerial capability will improve. These will help in the development of the economy. 

Some public sector which left in government control  granted different status. Maharatnas, Navratnas, Miniratnas these were the status given. These introduced to improve the managerial decision making skills. To make working more efficiently and increase profit. To increase competition among the sectors. These are done to make them enter global market. Also to improve development in the economy.

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