What is it called when the government sells part of its share in public sector companies to the public?

The correct option is Disinvestment.

Here is a step-by-step explanation of why this is the correct answer:

1. Understanding Disinvestment:
Disinvestment refers to the action of an organization or government selling or liquidating an asset or subsidiary. In the context of public sector undertakings (PSUs), disinvestment means the government dilutes its stake or ownership by selling a portion of its shares to private players, financial institutions, or the general public.

2. Why Other Options Are Incorrect:
• Nationalisation: This is the exact opposite of disinvestment. It involves the government taking over private assets or companies to bring them under public ownership (e.g., the nationalization of banks in India in 1969).
• Globalisation: This refers to the integration of a country's economy with the global economy through trade, capital flows, and technology, rather than the sale of public sector shares.
• Industrialisation: This is the general process by which an economy transforms from primarily agricultural to one based on the manufacturing of goods, involving factory production and technological innovation.

Therefore, when the government reduces its equity holding in public sector enterprises by selling them to the public or private sector, the process is specifically termed Disinvestment.