Unit-2

BBA-2SUBJECT- GSI

Topics

• Introduction of public sector in India• Objectives of public sector• Roles played by the public sector in India• Role of private sector in India• Service sector in India• Reasons for rapid service growth

Introduction of public sector in India

• The public sector refers to the part of the economy concerned with providing basic government services.

• Includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor.

• The part of national economy providing basic goods or services that are either not, or cannot be, provided by the private sector.

• It consists of national and local governments, their agencies, and their chartered bodies.

Product Profile of public sector• Public sector enterprises offer a wide range of products and services which

include: Manufacturing of – steel– heavy machinery– machine tools– instruments– heavy machine building equipment– heavy electrical equipment for thermal stations– transportation equipment– telecommunication equipment– ships and sub-marines– fertilizers– drugs and pharmaceuticals– petrochemicals– cement– textile

• Mining of coal and minerals• Extraction and refining of crude oil • Operation of air, sea, river and road transport• National and international trade• Consultancy• Contract and construction services• Inland and overseas telecommunication services• Financial services• Consumer items such as newsprint, paper and contraceptives• Hotel and tourism services

Objectives of public sector in India • To provide basic infra. Facilities like power,

electricity, water, roads, communication etc.• Balanced regional development by establishing

industrial undertakings in backwards areas• To reduce inequalities of income and wealth (taking

profits of certain heavy industries from private individuals)

• To avoid concentration of economic power in a few private hands or small groups

• To promote rapid economic development by filling gaps in the industrial sector

• To increase employment opportunities, to raise per capita income

• To undertake economic activities which are strategically important for growth , if left to the private sector, may distort the economy

Role played by Public sector• Development of infrastructure facilities• Laying a strong base of industrialization• Public sector and development of critical industrial areas ( iron

and steel, coal, oil, electricity, chemicals, heavy machinery, defense goods

• Public sector and export promotion• Public sector and import substitution • Public sector and growth of ancillary industries• Public sector and mobilization of internal resources for

development• Employment generation• Contribution in GDP

Private sector

• Includes individual enterprises, partnerships and joint stock companies, and industrial units in the cooperative sector

• Textiles, sugar, jute manufacturer, paper, cement, consumer durables, FMCG etc.

Role played by private sector in india

• Contribution in National Income• Employment generation • Contribution in Gross domestic savings• Contribution in Gross capital formation