Indian Economy

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The Public Sector in India

Introduction

The role of the public sector in accelerating the growth of the developing countries cannot be overemphasized. In almost all developing economies including India the private sector is primarily engaged in the production of consumer goods and in plantation and mines. The principal motive of the private sector is to earn profit and not to render services to the society as is the avowed policy of the government-owned public sector. Moreover, the private sector is very reluctant to invest in industries that require huge investments, have long gestation periods and wherein the return on capital is uncertain. Therefore, planners who want to achieve fast-track growth for a developing economy cannot depend ...