The political implications of privatisation are as follows:

1. Concentration of Wealth: Privatisation encourages the concentration of wealth in the hands of big business groups. It results in great disparities of income and wealth. It goes against the principle of egalitarian society. 

2. More profits: Corporate sectors generate more profits. But they share a meagre percentage with the shareholders. They enjoy the lion’s share out of the shareholders’ investment. As a result, the gap between the rich and the poor gets widened.

3. Bane to local industries: Local people borrow money from indigenous banks and also get loans from government concerns with subsidised rates of interest to start an industry. Multi-national companies with good financial back up survive even in case of loss.

4. Threat to national interest: Key areas of Nation like Defence, Space, Science and ‘ Technology are to be retained with the Government. Assigning these areas to private sector may harm National interests.

5. Lack of service motto: The private firms are concerned more about their profit rather than providing good service conditions to their staff and do not bother about extending welfare programmes to their employees and even to the society.

6. No job security: Private companies extract work from employees as long as they are fit. They ruthlessly sack them when they suffer from ill health or fitness problems. In the long run, they become a burden to the Government. The employees of private sectors suffer from job insecurity and this results in psychological disorders.