Bazaarre-The Market Review

We may enumerate below the various arguments put forth in support of the public sector in India. 1. Maximizing the rate of economic growth : Originally, the activity of the public sector enterprises was to be limited to a definite field of basic and key industries of strategic importance. There were certain fields where the private enterprise was shy to operate as they involved huge investment or risk. It was the public sector alone which could build the economic overheads such as power, transport, etc. Since then the ideological objective of capturing the “commanding heights” by the public-vector bas been duly fulfilled, it succeeded in creating the necessary infrastructural base for sustained industrial growth. It has tremendously boosted the technological capabilities. The public enterprises have firmly established the foundation for the construction of a self-generating, industrial economy. During the planned era, the public sector has-diversified its activities to cover a wide