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Question

Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).

Assertion (A): The disinvestment policy has been widely criticized in India.

Reason (R): It resulted in increased market monopoly by public sector undertakings.

This question was previously asked in
SSC CGL 2025 Tier 2 Paper 1 Question Paper (19-Jan-2026)
The correct answer is

A is true but R is false.

Assertion (A): True. India's disinvestment policy has indeed faced wide-ranging criticism — for undervaluing strategic public assets, allegedly favouring particular buyers, undermining employment in PSUs, and weakening state capacity in core sectors.

Reason (R): False. By definition, disinvestment reduces the government's stake in public sector undertakings and brings in private competition, so it tends to shrink, not expand, public sector dominance. The criticism of disinvestment is precisely the opposite — that it has weakened PSUs and enabled private monopolies, not strengthened public-sector monopoly.

Hence the correct option is A is true but R is false.

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