Question

Is it necessary to have the public sector? Substantiate your answer by examining the role of the government.

Answer 1

Yes, it is necessary to have public sector due to its contribution to economic development of India.
Role of public sector/government
(i) It ensures rapid economic development.
(ii) It promotes redistribution of Income and wealth.
(iii) It develops industries which require huge investment.
(iv) It ensures balanced regional growth.
(v) It prevents concentration of economic power.
(vi) It generates resources for development.
(vii) It promotes import substitution.
(viii) It generates employment.
(ix) It helps in development of small-scale industries.

Answer 2

Yes, it is necessary to have public sector due to its contribution to economic development of India.

Role of public sector/government

(i) It ensures rapid economic development.

(ii) It promotes redistribution of Income and wealth.

(iii) It develops industries which require huge investment.

(iv) It ensures balanced regional growth.

(v) It prevents concentration of economic power.

(vi) It generates resources for development.

(vii) It promotes import substitution.

(viii) It generates employment.

(ix) It helps in development of small-scale industries.