(i) Privatisation: It is the process of involving the private sector in the ownership or operation of a state owned enterprise. It implies gradual withdrawal of a government ownership/management from PSU. The primary objectives of the privatisation are to improve the efficiency, productivity and profitability of the PSU's.
(ii) Agricultural sector has been adversely affected by the Economic Reform Process in the following ways:
1. Withdrawal of agricultural subsidy has severely affected the small and marginal farmers.
2. Investment in agricultural sector, particularly in infrastructure (irrigation, power, research etc.) has fallen.
3. Import duty on agricultural products has been reduced.
4. Quantitative restrictions on import of agricultural products have been lifted.
5. It also led to shift in cropping pattern. Farmers have increased shift to cash crops instead of subsistence crops.