The document discusses public sector undertakings (PSUs) in India. It notes that PSUs have laid the foundation for rapid industrialization in India and contributed to making India a leader in major industries and technologies. It outlines that PSUs operate in various key sectors like coal, oil, steel, banking, telecom, and more. PSUs play an important role through capital formation, developing infrastructure, export earnings, import substitution, contributing to national income and employment generation, and promoting balanced regional development. Overall, PSUs account for over 22% of India's GDP and make significant economic and social contributions to the country.

2. INTRODUCTION
 Through the Public Sector Undertakings (PSUs)the
basic of further rapid industrialisation has been laid.
 Without the public sector India would not have
been among the front rankers in the world.
 India is today big industry and technology.
 There has been a very welcome diversification of the
country’s industrial structure.
 They have also made a significant contribution to
the balanced economic development in the country.

3. PSUs in India
A state owned enterprise in India is called Public
Sector Undertakings or a Public Sector Enterprise.
The companies owned by the union government of
India/ one of the many state / territorial government/
both.
 The company stock needs to be majority owned by
the government to be a PSU.
 PSUs may be classified as Central Public Sector
Enterprises(CPSE), Public sector Bank(PSBs) and
State Level Public Enterprises(SLPEs).
 CPSEs are administered by the Ministry of Heavy
Industries and Public Enterprises.

4. Different sectors in Public
Sector in India
 Coal industry
 Oil and Petroleum
industry
 Steel industry
 Thermal power industry
 Jute industry
 Banking industry
 Food industry
 Insurance industry
 Telecommunication
industry
 Aviation industry
 Service industry
 Agriculture industry
 Manufacturing industry
 Mining industry
 Electricity industry
 Engineering industry

5. ROLE OF PUBLIC SECTOR
Contribution to Capital Formation
Development of Infrastructure
Role of Export Earnings
Contribution to Import substitution
Share in National Income
Share in Employment Generation
 Balanced Regional Development

6. Contribution to Capital Formation
 Capital formation means increasing the stock of
real capital in a country.
The PSUs are playing a dominant role to
channelize savings into regular investment.
 In first and second Five year plan 54% of total
investment was in Public Sector.
Third Five year plan increased 60%
 Seventh plan investment down 45.7%
 However, last decades capital formation of public
sector has increased from just 46% to 61%

7. Development of Infrastructure
Infrastructure considered as the “Back Bone” of the Indian
economy.
 The economic development and infrastructure are positively
co-related.
Infrastructure mainly refers to Power, Transport,
Communication, Irrigation, Steel, Cement and Fertilisers etc.
 After the pre independence period the government had
taken several initiative to make the process of
industrialisation technically and financially strong.
The large industries are set up with proper capital formation
regarding the development of all type of transport, power
and effective resources mobilisation.

8. Role Of Export Earnings
The Public Sector undertakings have been making
sizable contribution to the country’s export earnings by
exporting goods as well as services.
Thereby earning substantial foreign exchange.
The public sector has built up a reputation abroad in
selling plants, heavy equipment’s machine’s tool’s and
other industrial product’s.
Bharath Heavy Electricals Ltd, HMT Ltd, Hindustan
Steel Ltd, State Trading corporations.
 Bharat Electronics Ltd, IOC, ONGC etc.

9. Contribution to Import
Substitution
The development process in our economy was launched
through the inward looking strategy of Import
Substitution.
The public sector has made an immense contribution to
the process of substitution of indigenously produced
goods.
 Today many commodities starting from basic drugs to
highly advanced equipments are manufactured in the
public sector.
Indian Oil Corporation and Oil and Natural Gas are
some of the leading enterprises, which are contributing
self-reliance on their respective fields.

10. Share in National Income
In Indian mixed economic system, the growth process
has been accelerated by the investment in the public
sector.
 The contribution to public sector in the generation of
net domestic product has consistently been increasing.
 Public sector unit adds huge revenue through Excise
duty, Customs duty, Dividend, Profit and other Direct
taxes.

11. Share in Employment
Generation
Full employment is the most cherished goal of economic
policy of the government.
 Gov. Of India and state government are making
contribution to employment generation both directly
and indirectly.
Indirect Employment generation is through public
investment in Anti- unemployment programme.
Direct employment generation is through expansion of
its administration department and economic
enterprises.
More than 17 lakh of people are employing in Indian
Railways.

12. Balanced Regional Development
Public sector undertakings have located their
majority of plants in backward part of the
country.
These areas lacked basic industrial and civic
facilities like electricity, water supply, township
and manpower.
Public enterprises have developed these
facilities thereby bringing about complete
transformation is the socio-economic life of the
people in these regions.

13. Conclusion
The public sector enterprises in the Indian economy
are to play an important role. They account for over
22% of the country’s GDP around 6% of the total
employment in the organised sector, and over 20% of
direct and indirect tax collections.