BBA-2

1. Topic: Role of Public, Private & Service Sector
Subject: Growth & Structure of Industries
Course- BBA II
Unit-2
Prepared by: Prof. RITIKA SINGH

2.  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.  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.  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.  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.  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.  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.  Contribution in National Income
 Employment generation
 Contribution in Gross domestic savings
 Contribution in Gross capital formation

11.  Service Sector of Indian Economy
 contributes to around 55 percent of India's
GDP during 2006-07.This sector plays a
leading role in the economy of India, and
contributes to around 68.6 percent of the
overall average growth in GDP between
2002-03 and 2006-07.

12.  The service sectors of Indian economy that have grown
faster than the economy are as follows:
 InformationTechnology (the most leading service sectors in
Indian economy)
 IT-enabled services (ITeS)
 Telecommunications
 Financial Services
 Community Services
 Hotels and Restaurants

13.  A statistics concerning the growth of India's service sectors are listed
below:
 The software services in Indian economy increased by 33 percent which
registered a revenue of USD 31.4 billion
 Business services grew by 82.4 percent
 Engineering services and products exports grew by 23 percent and earned
a revenue of USD 4.9 billion
 Services concerning personal, cultural, and recreational had a growth of
96 percent
 Financial services had a rise of 88.5 percent
 Travel, transport, and insurance grew by 23 percent