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 It implies enterprises owned and managed by
private parties for earning profit
1.The dominant sector
despite the rapid progress of the public
sector in the period of planning, private sector is
the dominant sector in the Indian economy.
2. Importance for development
In western countries private entrepreneurs
have played an important role in economic
development so much so that schumpeter has
characterised them as the initiator and moving
force behind the industralisation process.
4.Potentialities due to personal
incentive in the small sector
In India, all small and cottage industries are
in the private sector. These industries employ
labour-intensive techniques and are, accordingly,
important from the point of view of providing
employment opportunities.
3.Extensive modern Industrial sector
a number of modern industries have been
set up in the private sector. Today India is
practically self reliant in its requirements for
consumer goods. According to the 1956
resolution, ”Industries producing
intermediate goods and machine
can be set up in the private sector.”
Growth in telecom sector
as the figures of 2001-06, there as been
an incredible increase in the investment in
the telecommunication sector in India 64% of
the investment in this sector in South Asia
has been in this sector.
Growth in energy and water sector
This sector also has attracted a large
investment from the private industries.
Figures as of 2001-06 registered 17%
investment in sector. However in the water
sector there has not been any major
investment due to political issues, weak
authority etc.
Growth in transport sector
This sector also has an important
area of investment by the private
enterprises. As of figures of the year
2006,there has been an investment of
34% alone in the transport sector. The
driving force behind this success has
been India’s initiatives and policies
encouraging partnerships of private
and the public sectors in transport.
 Contributing 4.3% of GDP and 80%
share of healthcare provision
 Expanding branches
Growth and role of private sector

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Growth and role of private sector

  • 1.
  • 2.  It implies enterprises owned and managed by private parties for earning profit
  • 3. 1.The dominant sector despite the rapid progress of the public sector in the period of planning, private sector is the dominant sector in the Indian economy. 2. Importance for development In western countries private entrepreneurs have played an important role in economic development so much so that schumpeter has characterised them as the initiator and moving force behind the industralisation process.
  • 4. 4.Potentialities due to personal incentive in the small sector In India, all small and cottage industries are in the private sector. These industries employ labour-intensive techniques and are, accordingly, important from the point of view of providing employment opportunities.
  • 5. 3.Extensive modern Industrial sector a number of modern industries have been set up in the private sector. Today India is practically self reliant in its requirements for consumer goods. According to the 1956 resolution, ”Industries producing intermediate goods and machine can be set up in the private sector.”
  • 6. Growth in telecom sector as the figures of 2001-06, there as been an incredible increase in the investment in the telecommunication sector in India 64% of the investment in this sector in South Asia has been in this sector.
  • 7. Growth in energy and water sector This sector also has attracted a large investment from the private industries. Figures as of 2001-06 registered 17% investment in sector. However in the water sector there has not been any major investment due to political issues, weak authority etc.
  • 8. Growth in transport sector This sector also has an important area of investment by the private enterprises. As of figures of the year 2006,there has been an investment of 34% alone in the transport sector. The driving force behind this success has been India’s initiatives and policies encouraging partnerships of private and the public sectors in transport.
  • 9.  Contributing 4.3% of GDP and 80% share of healthcare provision  Expanding branches