Q.Distinguish between Liberalisation and Privatisation (any three points).

Both are pillars of the 1991 reforms, but one is about removing controls on economic activity in general, while the other is specifically about the ownership of enterprises.

Compare on meaning, scope, and a key example measure of each.

Liberalisation vs. Privatisation:

1. Meaning — Liberalisation is the removal/relaxation of government controls, licensing, and restrictions on private economic activity in general; Privatisation is specifically the transfer of ownership or management of public-sector enterprises to the private sector.
2. Scope — Liberalisation applies broadly across the whole economy (industrial licensing, trade policy, financial-sector rules); Privatisation applies specifically to existing public-sector undertakings (PSUs).
3. Example measure — Liberalisation's key example is the abolition of industrial licensing for most industries; Privatisation's key example is disinvestment — the government selling part of its equity in a PSU.