2. The Public sectoris referred to as the state
sector or the government sector, is a part of
the state that deals with either the
production, ownership, sale, provision, delive
ry and allocation of goods and services by
and for the government or its
citizens, whether national, regional or
local/municipal.
3. Priorto independence there were only
few Public Sector enterprises in the
country. These included Railways the
posts and Telegraphs, the Port
Trusts, the Ordinance Factories , All
India Radio.
4. Rapid
Economic
Development
Promote
Generate Redistributi
Resources of on of
Development Income and
wealth
Prevent
Concentr
ation of
Economic
Power
5.
6.
7.
8. Failure to generate
Sustainable Employment
Failure to Serve Public
Interest
Failure to Generate Adequate
‘Surplus’ for Development
Failure to Develop Strong
Infrastructure
9.
10.
11.
12. Ensures
competition and
promote
efficiency
Flexibility in Less wastage
decision and production
making costs get reduced
Reduction Economy in
in budget government
deficits expenditure
13. Leads to
Ignores concentrati
social on of
welfare economic
power
Leads to
unemployme Not always
nt and efficient.
poverty
14.
15. Strong views are expressed against
disinvestment by some economists.
The issue of disinvestment and privatization is
presented as an anti-people, anti-poor and anti-
labor policy measure.
Even the best policies have failed to make most
of the public enterprises efficient or
economically viable.
