Evolution of public sector economies?
Answers
Explanation:
Public Sector : The industries in this sector are completely under the control and management of the government. For example, production of defence equipment.
For mixed economy to run smoothly there is a need for co-ordination between the private sector and the public sector. This system aims at maximization of production and popular participation on a large scale and effort has been made in the system to bring together the good aspects of both capitalist and the socialist systems. A mixed economic cannot ignore the profit motive, enterpreneurship, discipline, time bound planning, etc.
A mixed economy also naturally tends to give priority to national interest. Long-term development is rest upon with priority. The industries like defence, scientific research, education, roads, railways, waterways, seaport, and airport development require huge capital investment but the returns in this area are delayed. Not many private industrialists are keen to invest in this areas. In such a situation the government has to take the initiative.
Thus, India adopted the mixed economy model and five year plans and started off on its path of development. The industrial policy of 1973 increased the speed of development. Priority was given in this policy to control the influence of heavy industries, industrial families and foreign industries and remove the imbalance in regional development. The government focused on the development of small scale industries and cottage industries. Government also started paying more attention to the Cooperative sector.