The document provides an overview of the public sector in India. It discusses that the public sector consists of organizations that are at least 50% owned by public authorities and established to achieve public purposes. The key objectives of the public sector are economic development, self-reliance, regional development, employment generation, and ensuring consumer welfare and public utilities. However, the public sector also faces problems like a lack of profit motive, underutilization, delays, overstaffing, and political interference.
The document provides an overview of the public sector in India. It discusses that the public sector consists of organizations that are at least 50% owned by public authorities and established to achieve public purposes. The key objectives of the public sector are economic development, self-reliance, regional development, employment generation, and ensuring consumer welfare and public utilities. However, the public sector also faces problems like a lack of profit motive, underutilization, delays, overstaffing, and political interference.
The document provides an overview of the public sector in India. It discusses that the public sector consists of organizations that are at least 50% owned by public authorities and established to achieve public purposes. The key objectives of the public sector are economic development, self-reliance, regional development, employment generation, and ensuring consumer welfare and public utilities. However, the public sector also faces problems like a lack of profit motive, underutilization, delays, overstaffing, and political interference.
The document provides an overview of the public sector in India. It discusses that the public sector consists of organizations that are at least 50% owned by public authorities and established to achieve public purposes. The key objectives of the public sector are economic development, self-reliance, regional development, employment generation, and ensuring consumer welfare and public utilities. However, the public sector also faces problems like a lack of profit motive, underutilization, delays, overstaffing, and political interference.
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Presentation on
Public Sector in India
SUBMITTED TO :- Submitted By:-
DR.MANINDER Hardeep Kaur SINGH GILL
Gurpreet Singh Contents
Meaning of Public Sector
Philosophy and Objectives of Public Sector Problems and Constraints Introduction
Public Sector A public sector enterprise is an organization which is Owned by public authorities including central ,state or local authorities ,to the extent of 50% or more Is used under the top managerial control of owning public authorities Is established for the achievement of a definite set of public purpose Is consequently placed under a system of public accountability Is engaged in an activity of business character Philosophy of Public Sector
To accelerate economic growth and industrialization of the country,
creating the necessary infrastructure of economic development; To promote fair distribution of income and wealth, inter personal as well as inter regional; To promote balanced regional development; To promote the growth of strategic defense oriented industries; To assist the development of small and ancillary units; To create employment opportunities; To maximize foreign exchange earnings through a proper mix of import substitution and export promotion and To generate forces of economic and technological self reliance. Objectives of Public Sector Enterprise
Economic development Self-reliance Development of backward Areas Employment generation Economic surplus Egalitarian society Consumer welfare Public utilities Defence Labour welfare 1. Economic development: Public enterprises were set up to accelerate the rate of economic growth in a planned manner. These enterprises have created a sound industrial base for rapid industrialisation of the country. They are expected to provide infrastructure facilities for promoting balanced and diversified economic structure of development. 2. Self-reliance: Another aim of public enterprises is to promote self-reliance in strategic sectors of the national economy. For this purpose, public enterprises have been set up in transportation, communication, energy, petro- chemicals, and other key and basic industries. 3. Development of backward Areas: Several public enterprises were established in backward areas to reduce regional imbalances in development. Balanced development of different parts of the country is necessary for social as well as strategic reasons. 4. Employment generation: Unemployment has become a serious problem in India. Public enterprises seek to offer gainful employment to millions. In order to protect jobs, several sick units in the private sector have been nationalised. 5. Economic surplus: Public enterprises seek to generate and mobilise surplus for reinvestment. These enterprises earn money and mobilise public savings for industrial development. 6. Egalitarian society: An important objective of public enterprises is to prevent concentration of economic power and growth of private monopolies. Public sector helps the Government to enforce social control on trade and industry for ensuring equitable distribution of goods and services. Public enterprises protect and promote small scale industries. 7. Consumer welfare: Public enterprises seek to protect consumers from exploitation and profiteering by ensuring supply of essential commodities at cheaper prices. They aim at stabilising prices. 8. Public utilities: Private sector is guided by profit motive. Therefore, it is reluctant to invest money in public utility services like water supply, gas, electricity, public transport. Therefore, the Government has to assume responsibility for providing such services. 9. Defence: Government has to set up public enterprises for production of defence equipment. Supply of such equipment cannot be entrusted for private sector due to the need for utmost secrecy. 10. Labour welfare: Public enterprises serve as model employers. They ensure welfare and social security of employees. Many public enterprises have developed townships, schools, college and hospitals for their workers. Problems of Public Sector In India
Lack of Importance to Profit Motive
Inappropriate Location Underutilization of Installed Capacity Not Making Proper Technical Feasibility Studies Delay in Project Completion Absence of Professional Management Overstaffing , Defective Recruitment and Promotion Policy Lack Of Rational Pricing Policy Political Interference
