2. 1. What is Public Sector?
2. What is Private Sector?
3. Role of Public Sector
4. Role of Private Sector
5. Advantages and Disadvantages of Public Sector
6. Advantages and Disadvantages of Private Sector
7. Performance of Private Sector in Indian economy
8. Performance of Public Sector in Indian economy
9. Conclusion
2BUSINESS ENVIRONMENT
3. The public sector is that portion of an economic system
that is controlled by national , state or local
governments.
The composition in most countries it includes defence,
public health ,public education etc.
The main intention of the public sector is to provide
quality services and product to the citizens.
Examples: SAIL, Indian Oil Corporation, Coal India
3
BUSINESS ENVIRONMENT
4. The private sector is part of a country’s economic system
that is run by individual or group of individuals.
The most private sector organizations are run with the
intention of making profit.
The capital are arranged by the owners.
It is managed without any government participation.
Examples: Tata Consultancy Services,ICICI Bank Limited
4BUSINESS ENVIRONMENT
5. Helps in rapid economic growth.
To earn return on investment.
For the development of infrastructure.
To Act as effective competition to other private sector.
For generating employment in government
administration , defence etc.
5BUSINESS ENVIRONMENT
6. To provide adequate competition.
To generate more employment opportunities.
To reduce political interference.
To increase the standard of living of the people.
Increase the number of private industry in India.
6BUSINESS ENVIRONMENT
8. Increase in employment.
Government earnings
Rural development.
National income
Social order.
Infrastructure development.
8BUSINESS ENVIRONMENT
9. Political interference.
Inefficient management.
High degree of corruption.
Slow decision making.
9BUSINESS ENVIRONMENT
10. Employment generation.
Helpful for development.
Faster decision makings.
Less interference in internal affairs by politicians
or government.
Highly skilled labours and management.
10BUSINESS ENVIRONMENT
11. Smaller resources .
Less emphasis on social welfare.
Possibilities of conflicts among owners.
Lack of public confidence.
11BUSINESS ENVIRONMENT
12. 1.Growth of public sector: There has been a tremendous
growth and expansion over the decade.
2.Range of public sector activities: Massive investment
have taken place such as thermal power, petroleum
etc.
3.Economic contribution: It have helped in increasing our
national income, improving distribution of wealth and
income.
4.Foreign Exchange Earning: Foreign exchange savings
has been possible due to import substitution efforts
made by public sector.
12BUSINESS ENVIRONMENT
13. 1. Financial reforms lead to more investment of
foreign companies in India.
2. Usage of more advanced technology.
3. People are now getting more quality products
and services.
4. Increasing the demand of people by
introduction of new products and services.
13BUSINESS ENVIRONMENT
14. The private sector were started long back but it was not
because policy makers found conclusive evidence for its
superiority.
The public sector inspite of its defects is a driving force for
sector in India because it takes initiative to develop
infrastructure.
Public sector provide foundations to the private sector.
Private sector is superior in terms of efficiency and cost.
Greater competition leads to more improvement and more
innovative products.
The private and public sector have to work together to
develop the economic conditions both are equally
responsible for it.
14BUSINESS ENVIRONMENT