| Privatisation | Liberalisation |
| (i) Privatisation means reducing the involvement of the public sector and increasing the involvement of the private sector in the country’s economic activities. | (i) Liberalisation means reducing or relaxing unnecessary restrictions over economic activities. |
| (ii) The policy of reduction investment is adopted to privatise the public sector. | (ii) Automatic approval to the foreign technology, providing tax concessions and other incentives to the foreign investors, etc. |
| (iii) The public sector enterprises are taken over by the private sector. It enables the country to improve the efficiency of these enterprises. | (iii) Liberalisation has given a boost to the industries in the private sector and given momentum to the industrial development of India. |
| (iv) Their policies lead to an increase in unemployment. | (iv) It has encouraged the culture of consumerism. |
