2. ROAD MAP
MEANING OF PRIVATE SECTOR
EXAMPLES
CHARACTERISTICS
IMPORTANCE
CONCLUSION
3. MEANING OF PRIVATE
SECTOR
Private sector is that organisation
which is owned, managed and
controlled by private individuals or
private institutions. Maximization of profit
is main motto of private sector.
4. EXAMPLES
Tata Engineering and Locomotive
company
Tata Iron and Steel company
Tata Power company
MRPL
Reliance Industries
Reliance Capital
Reliance Petroleum
Birla Yamaha
Birla Cement
5. CHARACTERISTICS
Private ownership : Private sector
undertakings are owned by private
enterpreneurs.
Profit motive : Private sector undertakings
are established mainly for earning profits.
Independent Management : The
management of private undertakings fully
vests in the owner though services of
professionals can be taken for the
management.
6. CHARACTERISTICS
Private Financing : Such enterprises are
generally, finance enterpreneurs.
No state participation : The government
(central or state) cannot participate in
the establishment of such undertakings.
7. IMPORTANCE
Efficiency : Because of keen competition
in this service sector, the private gives
more importance to efficiency and
employ specialists in their units. Hence
efficiency grows. So, it is rightly said that
private sector runs on efficiency.
Maximum profit : The main aim of
private owner is profit and more profit
and thus they increase the national
income.
8. IMPORTANCE
Increase in Government revenue : Private
sector contributes much to government
revenue in the form of Income Tax, Sales Tax
, Custom Duty, Excise Duty etc.
Economy : To earn profit, they lay much stress
on economy in the enterprise.
Better services : They provide better services
to customers will bring more profit to them.
Quick Decisions : Private enterprises are free
from red-tapism and procedural delays
, corruption, lethargy and inefficiency are not
found in these enterprises.
9. CONCLUSION
Private sector is the base of our
progress Private sector is that
organisation which is owned, managed
and controlled by private individuals or
private institutions. Maximization of profit
is main motto of private sector.