Group discussion on Privatization

Privatization refers to the purchase of all outstanding shares of a publicly traded company by private investors. The shares are then no longer traded at a stock exchange, as the company became private through private equity. Privatization also refers to a government outsourcing services or functions to private firms like collecting revenue, enforcing law etc.

Here, we get you some facts, quotes, arguments to help you with Group discussion on Privatization. Also provided is a list of GD topics on Privatization that you can expect to see during the selection process.

Some facts about Privatization:

  • In the Dominican Republic electricity charges jumped by 51% after privatization; daily blackouts followed.
  • In Mexico, membership of the rail workers union fell from 90,000 to 36,000 after private owners took over in the 1990s.
  • In Chile attempts to encourage private medical care reduced the number of employees in the public-health sector from 110,000 to 53,000 between 1973 and 1988.
  • The 1996 privatization of British Rail created an inefficient, accident-prone system supported by massive public subsidies.

Group discussion topics on Privatization, you can expect to see:

1. Pros and cons of privatization for India.
2. Pros and cons of privatization of education in India.
3. Pros and cons of privatization of electricity and water supplies in India.
4. Pros and cons of water privatization.
5. Who does privatization serve - Public or Companies?
6. Complete privatization is the answer to remove corruption in India.
7. Should Indian economy be privatized completely?
8. Privatization has always been bad news for economies around the world.
9. Air India privatization - Pros and Cons.
10. Should Indian Railways be privatized?

Some quotes that can be used in a Group Discussion on Privatization:

"That which we want less of in society should rarely be privatized and that which we want more of often should be."
- William MacGregor Robson

"Western concepts of ownership and privatization came in and clashed with that. So land began to be exchanged."
- Neil Abercrombie

Pros of Privatization:

1. Government debt: Under huge debt in every sector, our economy can only be revived if it is completely privatized.

2. Corruption free: Private companies can survive only with performance. Good performance, Better economy.  

3. Better standards: Standard and facility at every sector shall be improved under privatization. They are more responsible and answerable.

4. Hiring on basis of merit: Public sector employs staffs based on many things but merit. There is hardly any work done.

Cons of Privatization:

1. Less safety: Private companies are driven by generation of profit alone and this would result in compromising the safety of public.

2. Rise in prices: Incentivized services will no longer be available. With better facilities, prices will soar which will be difficult for the poor.

3. Job cut offs: Under loss or debt, private companies cut off jobs like none other which will lead to rise in unemployment in the long run.

4. Making the poor poorer: And the rich richer! This is one of the worst disadvantages of privatization which is why it is condemned in most countries.


Privatization of some sectors could have its benefits for India, some are unavoidable like Air India but not all services need to be privatized at the moment.

We hope that this GD guide on Privatization is helpful to you in preparing for your Group Discussions.