Explain any one of the following changing role of public sector in simple language:
1. Development of infrastructure
2. Regional balance
3. Economies of scale
4. Check over concentration of economic power
5. Import substitution
6. Government policy towards the public sector since 1991
Answers
Answer:
Infrastructure development is the construction of basic foundational services in order to stimulate economic growth and quality of life improvement. Most advanced economies have gone through periods of intensive infrastructure building that have improved the efficiency and competitiveness of regions.
Answer:
Infrastructure development is the construction of basic foundational services in order to stimulate economic growth and quality of life improvement. Most advanced economies have gone through periods of intensive infrastructure building that have improved the efficiency and competitiveness of regions.
Thus the regional balance implies uniform distribution pattern of the planned investment among different regions of a country.
Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. ... Economies of scale can be both internal and external.
The public sector serves as a check over the private sector, the willingness of the industrial houses to invest in heavy industries is lesser as people fear the wealth gets concentrated in a few hands and monopolistic practices are encouraged.
Import substitution is the idea that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods.
Government of India introduced four major reforms in the public sector in its new Industrial Policy, 1991. ... In 1991, only 8 industries were reserved for the public sector, they were restricted to the areas of atomic energy, arms and ammunition, defense, mining, and railways.