Normally the private sector cannot be induced to start industries in the backward areas. There were Central public sector undertakings excluding banks in The private sector is guided by the criterion of commercial return in its investment decisions.
The average rate of growth of investment in State level enterprises during period was of the order of 20 percent per annum. In view of this type of socio-economic set up, our visionary leaders drew up a roadmap for the development of Public Sector as an instrument for self-reliant economic growth.
Investment in the private sector producing goods for rich people mainly should be evaluated lower than similar type of investment in the public sector which is engaged in the provision of essential infrastructural services to the economy as a whole.
The growth of investment in Central public sector undertakings has also increased. It has vastly contributed in the fields such as nuclear or steel technology, aeronautics, defense materials, ship-building and so on. Most of the small scale and cottage scale industries are using labour intersine technologies, they create huge employment opportunities.
From the very beginning industrial development in India was very much skewed towards certain big port cities like Mumbai, Kolkata and Chennai. Establishment of a socialist pattern: She has created a goodwill in the third world countries-for her consultancy services and technical know-how.
The public enterprises have firmly established the foundation for the construction of a self-generating, industrial economy. Contributions of Private Sector are Listed Below: This figure rose to This is true even though the commercial profitability of the private sector is being rated high.
States like Punjab have made a vast progress because of the development of small and ancillary units. Sincethe number of industrial and commercial undertakings of the Central Government has increased from 5 units in to units in and the Capital investment has increased from Rs.
However, in the post independence period, the expansion of public sector was undertaken as an integral part of the Industrial Policy Industrial development of a country necessitates the foundation of an infrastructure!
These areas lacked basic industrial and civic facilities like electricity, water supply, township and manpower. From this point of view, the public sector has a magnificent record.
Public Sectors in India: The share of public sector in gross domestic capital formation has increased from 3. The comparative shares of public sector in the gross capital formation of the country also recorded a change from Other reforms have also been announced, such as professionalisation of the Boards of Directors of public sector enterprises and evaluation of performance of CPSEs through Memorandum of Understanding MOU.
In this respect the public sector is playing a crucial role. In the public enterprises earned Rs. Public sector has created millions of jobs to tackle the unemployment problem in the country. Investment in the private sector producing goods for rich people mainly should be evaluated lower than similar type of investment in the public sector which is engaged in the provision of essential infrastructural services to the economy as a whole.
In other way In-spite of huge progress of the public sector during the plan period, the importance of private sector is tremendous in the India economy.
The State aims at establishing an industrial democracy which will provide a fair deal to the workers.Article shared by. Sincewhen for the first time the importance of the public sector in the Indian economy was recognized, the public sector has experienced a phenomenal growth both in terms of number and volume of investment.
Public sector in India has been playing a definite positive role in generating income in the economy. The share of public sector in net domestic product (NDP) at current prices has increased from per cent in to per cent in Public sector in India has been playing a definite positive role in generating income in the economy.
The share of public sector in net domestic product (NDP) at current prices has increased from per cent in to per cent in The Role of Industrialization in the economic development of India!
Industrialization refers to a process of change in the technology used to produce goods and service.
The passage of Industrial Policy Resolution of and the adoption of the Socialist Pattern of Society as our national goal, further led to deliberate enlargement of the role of public sector. To understand the role of the Public Sector, we must have an idea about its size in the context of the Indian economy.
Meaning: In India, the sectoral organisation of business can be broadly divided into two groups—Private sector organisation and public sector organisation. Public sector plays an important role in the economic development of India.Download