Deregulation of Public Enterprises

Topic Content:

What is Deregulation?

Deregulation is the process of reduction or elimination of government power or restrictions on a particular industry to improve business operations and increase competition. It entails the process of removing or reducing state regulations in the economy to enable the industry to compete globally.

Merits of Deregulation of Public Corporation:

(i) It stimulates economic activity because it eliminates restrictions for new businesses to enter the market, which increases competition.

(ii) Since there is more competition in the market, it improves innovation and increases market growth as businesses compete with each other. When more businesses compete with each other, prices go down