Question

Reasons why government participate in business 11

Answer 1

India has a mixed economy which means it includes both the public and the private sector. India gives major importance to the private sector. The government participates in business as the private sector will not take up business backgrounds such as military/ army, infrastructure, transportation. This is because these businesses have a long gestation period and require huge capital investments. The private sector is focused on profits and not social motive. Public sector focuses on social motives.