Question

Explain how public sector contributes to the economic development of a nation.

Answer 1

The use of public sector in developing countries like India is very necessary because of following reasons:

• It promotes rapid economic development through infrastructure creation.
• It creates employment opportunities.
• It generates financial resources for further development.
• It ensures equality of income wealth and thus a balanced regional development.
• The public sector plays a vital role in contributing to the Human Development Index via its functioning in health and education services.