Unit 3 Private and Public Sector in India

Unit 3 Private and Public Sector in India.

Public Sector � The sector, which is engaged in the activities of providing government goods and services to the general public is Public Sector. � The enterprises, agencies, and bodies are fully owned, controlled and run by the Government whether it is central government, statement government or a local government.

Public Sector

Roles Played by Public Sector in Indian Economy � Generation of Income � Capital Formation � Employment � Infrastructure � Strong Industrial base � Export Promotion and Import Substitution � Contribution to Central Exchequer � Checking Concentration of Income and Wealth � Removal of Regional Disparities

Private Sector � The segment of a national economy that is owned, controlled and managed by private individuals or enterprises is known as Private Sector. � The private sector companies are divided on the basis of sizes like small & medium enterprises and large enterprises which are either privately or publicly traded organizations. � They can be created in two ways, i. e. either by the formation of a new enterprise or by the privatization of any Public Sector Enterprise.

Private Sector

Role of Private Sector in the Economic Development of India � Most Important Sector � Employment Generation � Helpful for Development � Contribution to Agriculture � Contribution to Industry � High Potentiality

Difference between Public and Private Sector Basis for Comparison Public Sector Private Sector Meaning The section of a nation's economy, which is The section of a nation's economy, which owned and under the control of government, whether it is controlled by private individuals or companies is known as central, state or local, is known as the Public Private Sector. Basic objective To serve the citizens of the country. Earning Profit Raises money from Public Revenue like tax, duty, penalty etc. Issuing shares and debentures or by taking loan Areas Police, Army, Mining, Health, Manufacturing, Finance, Information Technology, Mining, Transport, Electricity, Education, Transport, Education, Telecommunication, Manufacturing, Banking, Telecommunication, Agriculture, Banking, Construction, Pharmaceuticals etc. Insurance, etc. Benefits of working Job security, Retirement benefits, Allowances, Good salary package, Competitive environment, Incentives Perquisites etc. Basis of Promotion Seniority Merit Job Stability Yes No