Question

Why do we need public sector? explain how public sector contributes to economic development of the nation?

Answer 1

Public sector is important for both social and economic development. They provide the basic facilities like water, electricity which private sector will not provide or will provide with high rates. They give educational and health institutions to the socially and educationally backward people to make them come forward.

Answer 2

In the subsequent ways, Public Sector provides to the commercial development of a country. 

(i) It encourages accelerated economic expansion through the creation and representation of infrastructure. 

(ii) It generates employment possibilities. 

(iii) It generates economic support for development. 

(iv) It guarantees the balance of income, property and thus a stable regional expansion. 

(v) It fosters the growth of small, medium and cottage enterprises. 

(vi) It guarantees easy availability of assets at economical rates.