Question

What are the public sector investment policies in india?

Answer 1

The entry of the public sector in the economic sphere is a post-independence development.

Prior to 1947, public sector investment was limited to the Railways, the Post and Telegraphs Department, the Ordnance Factories and a few State managed fac­tories like the quinine factories, salt factories etc.

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Public enterprise emerged as an important factor in India’s economic growth. It was the Industrial Policy Resolution of the Govt. of India in 1948 which brought the public sector into limelight.

It declares that a dynamic national policy must be directed to a continuous increase in production by all possible means, side by side with measures to secure its eq­uitable distribution.

The problem of state partici­pation in industry and the condition in which pri­vate enterprise should be allowed to operate must be judged in this context. Since then the expansion of the public sector has been very rapid. The idea that in the economic