Changing Role of Public Sector
At the time of Independence, public sector enterprises were formed to play an important role in achieving certain objectives of the economy either by direct participation in the business or as a catalyst. At that time, the private sector was unwilling to invest in projects which required heavy investment and had a long gestation period. In the post 90’s period, after going through a lot of transition, the New Economic Policy emphasized liberalization, privatization, and globalization. The role of the public sector was redefined. It was not supposed to play a passive role but to actively participate and compete in the market with other private sector companies in the same industry. The role of the public sector is definitely not what was envisaged in the early 60s or 70s.
1. Development of Infrastructure.
2. Regional Balance.
3. Economies of Scale.
4. Check Over Concentration of Economic Power.
5. Import Substitutions.
6. Government Policy Towards the Public Sector Since 1991.
Private, Public, and Global Enterprises
We have all come across different types of organizations in our daily life. There are shops owned by Sole Proprietor or big retail organizations run by a Company. Then there are people providing services like legal services, medical services, is owned by one or more person i.e. Partnership Firms. These are all privately-owned organizations. Similarly, there are other offices and places of business that may be owned by the government. There are businesses that operate in more than one country known as Global Enterprise. There are all kinds of business organizations small or large, industrial or trading, privately owned or government owned existing in our country. Since the Indian economy consists of privately owned and government-owned business enterprises, it is known as a mixed economy.
The Private Sector consists of businesses owned by individuals or a group of individuals. Whereas the Public Sector consists of various organizations owned and managed by Government.
Table of Content
- Forms of Organizing Public Sector Enterprises
- Changing Role of Public Sector
- What are Global Enterprises?
- What are Joint Venture?