Is it necessary to have public sector? Substantiate your answer by examining the role of the government.

Open in App

Solution

Yes, it is necessary to have public sector due to its contribution to the economic development in India.
The role of public sector/government is as follows.
(i) It ensures rapid economic development.
(ii) It promotes redistribution of income and wealth.
(iii) It develops industries which require huge investment.
(iv) It ensures balanced regional growth.
(v) It prevents concentration of economic power.
(vi) It generates resources for development.
(vii) It promotes import substitution.
(viii) It generates employment.
(ix) It helps in development of small-scale industries.

Suggest Corrections

Similar questions

Q. The role of public sector was redefined. In July _________, Government identified nine central public sector enterprises as 'Navaratnas'.

Q. The role of public sector was redefined. In July _________ Government identified nin central public sector enterprises as 'Navaratnas'.

Categorise the following government receipts into revenue and capital receipts. Give reasons for your answer.

(i) Receipt from sale of shares of a public sector undertaking.

(ii) Borrowing from public.

(iii) Profit of public sector undertakings.

(iv) Income tax received by government.

In which of the government roles, it directly participates in economic activities through state ownership and management of public sector undertakings?

Q. Write short answer to the followings.

State the changing role of public sector.

Join BYJU'S Learning Program