Importance of public sector
Public sector has to play an important role in India. It is through the expansion of public sector that the state can assume commanding heights of the economy and give practical shape to its socio-economic policies designed at economic development with social justice.
Public sector is important due to the following reasons:
The expansion of public sector was also thought to be desirable because it ensures a more equitable distribution of economic power.
The expansion of public sector industries is also necessary to ensure a balanced regional growth.
Objectives
Capital Output Ratio in Public Sector
Public Sector Reforms
The New Industrial policy of July 1991, apart from bringing down the number of areas reserved for public sector from 29 earlier to only 8 now, has also decided to introduce the following reforms.
In order to raise resources and encourage wider participation, a part of the government's shareholding in public sector would be offered to financial institutions, general public and workers.
Some of these reforms have already been implemented. For example, shares of some public sector companies are now sold in the market.
Other reforms are being gradually put through. With these reforms, a positive and productive future awaits the public sector.
Autonomy
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1. What is the public sector in India? |
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