Argument against nationalisation:

Critics of nationalisation argued that:

i. Nationalised industries are not exposed to market forces; hence there would be inefficiency, slower growth and inadequate responsiveness to the wishes of the customers.

ii. In nationalized industries, managers may be frequently required to adjust their targets for political reason therefore most of the times, management decisions may not be economically rational and there would be no good plan for future investments.

iii. Since the industry is not competing for investment funds with other companies, it may not be able capable of using these funds profitably.