Indian Economy·MCQ Practice

Disinvestment Policy — MCQ Practice

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Version 1Updated 7 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

Which of the following statements regarding India's Disinvestment Policy is/are correct? 1. The Rangarajan Committee (1993) recommended disinvestment up to 74% in strategic PSUs. 2. The National Investment Fund (NIF) was established to channel disinvestment proceeds primarily for revenue expenditure. 3. Strategic disinvestment involves the transfer of management control to a private entity. Select the correct answer using the code given below:

Q2easy

Which of the following is NOT a primary objective of India's Disinvestment Policy? A. Reducing the fiscal deficit. B. Improving the efficiency and competitiveness of Public Sector Enterprises. C. Increasing government's direct control over all economic sectors. D. Mobilizing resources for social sector schemes and infrastructure development.

Q3medium

Consider the following statements regarding the current Disinvestment Policy (post-Budget 2021-22): 1. All Public Sector Enterprises (PSUs) in non-strategic sectors are to be privatized or closed. 2. In strategic sectors, the government aims to retain a 'bare minimum' presence of PSUs. 3. The policy mandates a complete exit of the government from all financial services PSUs. Which of the statements given above is/are correct?

Q4easy

Which of the following disinvestment methods typically involves the transfer of management control to a private entity?

Q5medium

Consider the following statements regarding the Air India disinvestment: 1. It was a strategic sale, transferring management control to the Tata Group. 2. The disinvestment was completed in 2022 after multiple previous attempts. 3. It was India's largest Initial Public Offering (IPO) by a Public Sector Enterprise. Which of the statements given above is/are correct?

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