The document discusses the public and private sectors in India. It provides an introduction to the public sector, outlining its objectives such as providing basic infrastructure and balanced regional development. It then discusses the roles of the public sector, including developing infrastructure, promoting critical industries, exports, import substitution, and resource mobilization. The private sector role is also summarized, focusing on its contributions to national income, employment, savings, and capital formation. The document covers key topics related to the public and private sectors in India.

1. Unit-2
BBA-2
SUBJECT- GSI

2. Topics
• 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. Introduction of public sector in India
• 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. Product Profile of public sector
• 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. Objectives of public sector in India
• 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. Role played by Public sector
• 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. Private sector
• 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. Role played by private sector in india
• Contribution in National Income
• Employment generation
• Contribution in Gross domestic savings
• Contribution in Gross capital formation