2. Topics
• Introduction of public sector in India
• Objectives of public sector
• Roles played by the public sector in India
• Role of private sector in India
• Service sector in India
• Reasons for rapid service growth
3. Introduction of public sector in India
• The public sector refers to the part of the economy
concerned with providing basic government
services.
• Includes such services as the police, military,
public roads, public transit, primary education and
healthcare for the poor.
• The part of national economy providing basic
goods or services that are either not, or cannot be,
provided by the private sector.
• It consists of national and local governments, their
agencies, and their chartered bodies.
4. Product Profile of public sector
• Public sector enterprises offer a wide range of products and services
which include: Manufacturing of
– steel
– heavy machinery
– machine tools
– instruments
– heavy machine building equipment
– heavy electrical equipment for thermal stations
– transportation equipment
– telecommunication equipment
– ships and sub-marines
– fertilizers
– drugs and pharmaceuticals
– petrochemicals
– cement
– textile
5. • Mining of coal and minerals
• Extraction and refining of crude oil
• Operation of air, sea, river and road transport
• National and international trade
• Consultancy
• Contract and construction services
• Inland and overseas telecommunication services
• Financial services
• Consumer items such as newsprint, paper and
contraceptives
• Hotel and tourism services
6. Objectives of public sector in India
• To provide basic infra. Facilities like power,
electricity, water, roads, communication etc.
• Balanced regional development by establishing
industrial undertakings in backwards areas
• To reduce inequalities of income and wealth (taking
profits of certain heavy industries from private
individuals)
• To avoid concentration of economic power in a few
private hands or small groups
• To promote rapid economic development by filling
gaps in the industrial sector
7. • To increase employment opportunities, to
raise per capita income
• To undertake economic activities which are
strategically important for growth , if left to
the private sector, may distort the economy
8. Role played by Public sector
• Development of infrastructure facilities
• Laying a strong base of industrialization
• Public sector and development of critical industrial areas (
iron and steel, coal, oil, electricity, chemicals, heavy
machinery, defense goods
• Public sector and export promotion
• Public sector and import substitution
• Public sector and growth of ancillary industries
• Public sector and mobilization of internal resources for
development
• Employment generation
• Contribution in GDP
9. Private sector
• Includes individual enterprises, partnerships
and joint stock companies, and industrial units
in the cooperative sector
• Textiles, sugar, jute manufacturer, paper,
cement, consumer durables, FMCG etc.
10. Role played by private sector in india
• Contribution in National Income
• Employment generation
• Contribution in Gross domestic savings
• Contribution in Gross capital formation
