Advantages of privatisation are :
(i) Privatisation will introduce efficiency and profitability in Public Sector Undertakings (PSUs).
(ii) Privatisation promotes consumer’s sovereignty. High degree of consumer’s sovereignty implies wider choice and better quality of life.
(iii) Privatisation will reduce budgetary deficits which result from expenditure on loss making PSUs.
(iv) Privatisation promotes diversification of production. Unlike PSUs, private enterprises invariably generate high profits.