Question

Role of private sector vs public sector since independence

Answer 1

Answer:

Explanation:

Following are some of the important relative roles of the public sector in the economic development of a country like India:

(a) Promoting economic development at a rapid pace by filling gaps in the industrial structure;

(b) Promoting adequate infrastructural facilities for the growth of the economy;

(c) Undertaking economic activity in those strategically significant development areas, where private sector may distort the spirit of national objective;

(d) Checking monopolies and concentration of power in the hands of few;

(e) Promoting balanced regional development and diversifying natural resources and other infrastructural facilities in those less developed areas of the country;

(f) Reducing the disparities in the distribution of income and wealth by bridging the gap between the rich and the poor

(g) Creating and enhancing sufficient employment opportunities in different sectors by making heavy investments;

(h) Attaining self-reliance in different technologies as per requirement;

(i) Eliminating dependence on foreign aid and foreign technology;

(f) Exercising social control and regulation through various public finance institutions;

(k) Controlling the sensitive sectors such as distribution system, allocating the scarce imported goods rationally etc.; and

(l) reducing the pressure of balance of payments by promoting export and reducing imports.

Relative Role of Private Sector in India:

India, being a mixed economy, has assigned a great importance on the private sector of the country for attaining rapid economic development. The Government has fixed a specific role to the private sector in the field of industries, trade and services sector.

The most dominant sector of India, i.e., agriculture and other allied activities like dairying, animal husbandry, poultry etc. is totally under the control of the private sector. Thus private sector is playing an important role in managing the entire agricultural sector and thereby providing the entire food supply to the millions.

Moreover, the major portion of the industrial sector engaged in the non-strategic and light areas, producing various consumer goods both durables and non-durables, electronics and electrical goods, automobiles, textiles, chemicals, food products, light engineering goods etc., is also under the control of the private sector.

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