Quick Answer: What Is The Role Of A Public Sector Undertaking In The Socio Economic Development Of Our Country?

What is the role of public sector in economic development?

Here we detail about the following nine important roles played by public sector in Indian economy, i.e., (1) Generation of Income, (2) Capital Formation, (3) Employment, (4) Infrastructure, (5) Strong Industrial Base, (6) Export Promotion and Import Substitution, (7) Contribution to Central Exchequer, (8) Checking ….

Why is public sector important why government role in economy?

Public sector is always on the side of the government, they get funds from the government and operate under instructions given by the government. The public sector is found to very important because;It encourages economic development,this need a lot of capital because it deals more with industries.

Why is it important to have a large public sector contribution for the development of an economy?

Public sector has played an important role in achieving industrial self reliance. Iron and steel, railway equipment, petroleum, coal and fertilizer industries, have been developed in this sector. … It is due to these efforts that India has been able to develop in the field of industry.

What is public sector and its importance?

It is important to have Public Sector in our society because,The public sector provides many essential things at quite a reasonable cost which the private sector cannot. The public sector has the benefit of the people above everything because its purpose is not to earn profits but to benefit the people at all costs.

Why do we need the public sector?

Public sector is important for both social and economic development. They provide the basic facilities like water, electricity which private sector will not provide or will provide with high rates. They give educational and health institutions to the socially and educationally backward people to make them come forward.

What is the purpose of the public sector?

Public sector helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services, Public sector organisations are businesses set up with the aim of providing a public service rather than making a profit.

What was the role of the public sector before 1991 give four points?

i) The public sector helped in the infrastructure development for different sectors and also made investment in some of the core areas. ii) The public sector invested in those projects that required huge amount of investment and were generally made for a long period of time.

How does public sector help in development of a country?

The public sector helps in the development of a country in the following ways. … It provides basic health and educational services in the country by establishing hospitals and schools for the poor and the needy. 2. It provides water, postal services, electricity, irrigation etc.

What are the advantages of a public sector?

Job security – Job stability is often referenced as a major perk as it is relatively stable. Whilst profit-based companies are prone to closure, public sector organisations have the stability of government-backing. Working atmosphere – the public sector is regarded by many as less demanding than the private sector.

What are the problems of public sector?

17 Major Problems of Public Sector in Economy (With Examples)Inefficient Management.Lack of Efficiency.Delayed Decisions.Lack of Innovations.Excessive Government Control.Mounting Losses.Political Interference.Under Utilization of Capacity.More items…•

What are the aims and objectives of a public sector?

The expansion of the public sector was aimed at the fulfillment of our national goals, that is., the removal of poverty, the attainment of self-reliance, reduction in inequalities of income, expansion of employment opportunities, removal of regional imbalances, acceleration of the pace of agricultural and industrial …