Chapter 2 | Economics | 8th Social Science - Public and Private Sectors | 8th Social Science : Economics : Chapter 2 : Public and Private Sectors
Chapter: 8th Social Science : Economics : Chapter 2 : Public and Private Sectors
Public and Private Sectors
Unit - 2
Public and Private Sectors
Learning Objectives
▶To know the history of public sector
▶To know the various indicators of
Socio-Economic Development
▶To understand the importance of public sector
▶ Appreciate the difference between public and
private sectors
▶ Understand the functions of private sectors
Introduction
India was basically an agrarian
economy with a weak industrial base at the time of Independence. There were
high level of poverty, illiteracy and unemployment in the country. India
experienced very poor economic and social over heads. It is principally for
these reasons that the state had to play an extensive role in developing the
country. Hence India conceived to have the Indian economy on socialist lines.
The economic growth may be sustained at a maximum rate, if private sector and
public sector join hands.India followed mixed economic system that it is
operated both by private enterprises and public enterprises.
Public and Private Sector
There are all kinds of business
organizations – small or large, industrial or trading, private owned or
government owned in our country. These organizations affect in our daily
economic life and therefore become part of the Indian economy. Since the Indian
economy consists of both private owned and government owned business
enterprises, it is known as a mixed economy. The Government of India has opted
for a mixed economy where both private and government enterprises are allowed
to operate. The economy, therefore, may be classified into two sectors viz.,
private sector and public sector.
The public sector and the private
sector are allotted their respective roles in promoting the economic welfare of
all sections of the community. Public sector industries are under the ownership
of Government whereas the private sector industries are under the ownership of
private people. The public sector enables the full growth in an economy. Public
sector is on service motive and the private sector is on profit motive.
Mixed economy is the mixture
of merits of both capitalism and socialism.
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