Question

Write four objectives of public sector enterprises with suitable example

Answer 1

1. Economic development:

Public enterprises were set up to accelerate the rate of economic growth in a planned manner. These enterprises have created a sound industrial base for rapid industrialisation of the country.

They are expected to provide infrastructure facilities for promot­ing balanced and diversified economic structure of development.

2. Self-reliance:

Another aim of public enterprises is to promote self-reliance in strategic sectors of the national economy. For this purpose, public enterprises have been set up in transpor­tation, communication, energy, petro-chemicals, and other key and basic industries.

3. Development of backward Areas:

Several public enterprises were established in back­ward areas to reduce regional imbalances in development. Balanced development of different parts of the country is necessary for social as well as strategic reasons.

4. Employment generation:

Unemployment has become a serious problem in India. Public enterprises seek to offer gainful employment to millions. In order to protect jobs, several sick units in the private sector have been nationalised.

5. Economic surplus:

Public enterprises seek to generate and mobilise surplus for reinvest­ment. These enterprises earn money and mobilise public savings for industrial development.