This has resulted in saving of precious foreign exchange. However, in the post independence period, the expansion of public sector was undertaken as an integral part of the Industrial Policy The share of manufacturing in gross block, duringwas The public sector enterprises are contributing a good amount of resources to the central exchequer regularly in the form of dividend, excise duty, custom duty, corporate taxes etc.
The public sector has an important role in the field of agriculture as well.
Then road network is one of the largest in the world as a result of spectacular development of roads under various lanes. Public sector exports also include consumer goods. Role, Growth and Problems Article shared by: In-spite of huge progress of the public sector during the plan period, the importance of private sector is tremendous in the India economy.
Very often maximization of profit is achieved at the cost of public welfare. Export Promotion and Import Substitution: Industrial development of a country necessitates the foundation of an infrastructure! It also helps in the flow of goods and services in the economy. Share in Capital Formation: All the government-owned production units come under this head.
India was a victim of the colonial feature of economic exploitation for more than hundred years. If we are to become Democratic Socialist Republic we will have to give greater importance to public sector and we will have to give greater importance to public sector and we will have to rely upon public sector for a number of years to come, for the development of economy.
Moreover, all the professional services like doctors, engineers, teachers, lawyers etc. Such research is highly essential for the introduction of new goods and new technologies of production, lowering the cost of production and improving the quality of the product.
Indian economy can be broadly divided into two heads: The total road length comprising national high ways state high ways and other road accounted for Though the country is presently facing an energy crisis but this sector has also gained much in terms of production.
These units produce and distribute goods and services among the common mass with an objective of welfare motives.
Public sector investment on infrastructure sector like power, transportation, communication, basic and heavy industries, irrigation, education and technical training etc. Similarly Indian handicrafts, and light engineering goods have become popular in many countries.
Adopting New Approach Article shared by After independence, India chartered a path of economic development based on mixed economy, building a new industrial structure around the public sector and a closely monitored, regulated and controlled system where government played the role of licenser in the process of building industry.
Besides finance commission, other economic commissions are set up by the central government time to time to look after the parity of resources distribution among the states. Public sector employments are of two categories, i. This sector produces different services like transport, communication, banking, insurance, trade and commerce, including both national and international trade.
Although India is an agro-based economy, but lot of emphasis has been given on the development of industries both consumer goods and capital goodsservice sector including construction, trade, commerce, banking system etc.
All the privately owned production units are come under this head. It is expected that in future, ancillary development would receive more attention from the Government. Thus by developing a strong industrial base, the public sector has developed a suitable base for rapid industrialization in the country.
However in real terms those capitals were not according to the proper needs of Indians and directly helped the capital growth of Britishers. During s, the share of public sector in gross domestic savings declined from In addition to the primary effect of the public sector in creating employment opportunities, public sector investments also have a multiplier effect on other sectors of the economy.
Now in India incidence of poverty is coexisting with sophisticated nuclear technology.
Moreover, public sector has also been dominating in critical areas such as petroleum products, coal, copper, lead, hydro and steam turbines etc. Expansion of public sector enterprises in India has been successfully checking the concentration of economic power into the hands of a few and thus are redressing the problem of inequalities of income and-wealth of the economy.
The role of public sector in collecting saving and investing them during the planning ear has been very important. These areas lacked basic industrial and civic facilities like electricity, water supply, township and manpower.
White locating new public enterprises the claims of the relatively backward areas are given due consideration. First the Reserve Bank was nationalized inthereafter in the Imperial Bank of India, a leading commercial bank of that time, was nationalized and renamed the State Bank of India.ADVERTISEMENTS: India is a capitalistic biased mixed economy.
It is needless to say, what important role private sector plays for the economic development of the country. Contributions of Private Sector are Listed Below: 1.
Most Important Sector: ADVERTISEMENTS: In-spite of huge progress of the public sector during the plan period, the importance of private sector [ ]. Public sector and private sector plays significant role in achieving economic growth of a nation. An effect of their function is noticed on the achievement of country's socio-economic development.
Strong and leading Bhutanese public sector was established in with the inception of first five year plan. Essay on “Role of Public Sector in The Indian Economy” Complete Essay for Class 10, Class 12 and Graduation and other classes.
Public Sectors in India: Role, Growth and Problems! Prior tothere was virtually no “public sector” in India. The only instances worthy of mention were the Railways, the Posts and Telegraphs, the Port Trusts, the Ordnance and Aircraft Factories and a few state managed undertakings like the.
Words Essay on Indian Economy: Adopting New Approach Article shared by After independence, India chartered a path of economic development based on mixed economy, building a new industrial structure around the public sector and a closely monitored, regulated and controlled system where government played the role of licenser in the process.
Public Sectors in Indian Economy: Objectives, Importance, Performance and Problems • Public Sector and Capital Formation: The role of public sector in collecting saving and investing them.Download