Role of public and private

Role of public and private

1. Presented by: Wasim Saikia(56) Zafrid Sahid Hussain(58) Yeashmeen Rashid(57) Topic: Role of Public sector and and Private sector

2. What is Public sector? The public sector is that portion of an economic system that is controlled by national , state or local governments. The public sector sometimes overlaps with the private sector in producing or providing certain goods and services. The main intention of the public sector is to provide quality services and product to the common people. Examples : SAIL, Indian Oil Corporation, Coal India

3. What is private sector? The private sector is part of a country’s economic system that run in by individuals and companies. The most private sector organizations are run with the intention of making profit. They are not accountable to publish their annual report. Examples : ITC limited,ICICI Bank Limited

4. Role of Public sector Helps in rapid economic growth. To earn return on investment. For the development of infrastructure. To Act as effective competition to other private sector. For generating employment in government administration , defence etc.

5. Role of Private sector To provide adequate competition. To generate more employment opportunities. To reduce political interference. To increase the standard of living of the people. Increase the number of private industry in India .

6. Advantages and disadvantages of public and private sector

7. Advantages of Public sector Increase in employment. Government earnings Rural development. National income Social order. Infrastructure development .

8. Disadvantages of public sector Political interference. Inefficient management. High degree of corruption. Consumer interests ignored. Corruption prevails. Slow decision making.

9. Advantages of private sector Employment generation. Helpful for development. Faster decision makings. Less interference in interference in internal affairs by politicians or government. Highly skilled labours and management.

10. Disadvantages of private sector Smaller resources . Less emphasis on social welfare. Possibilities of conflicts among owners. Lack of public confidence.

11. Performance of public sector in Indian economy 1.Growth of public sector: There has been a tremendous growth and expansion over the decade. 2.Range of public sector activities: Massive investment have taken place such as thermal power, petroleum etc. 3.Economic contribution: It have helped in increasing our national income, improving distribution of wealth and income. 4.Foreign Exchange Earning: Foreign exchange savings has been possible due to import substitution efforts made by public sector.

12. Performance of private sector in Indian economy Financial reforms lead to more investment of foreign companies in India. Usage of more advanced technology. Opening up of foreign direct investment to other countries. Increasing the demand of people by introduction of new products and services.

13. CONCLUSION The private sector were started long back but it was not because policy makers found conclusive evidence for its superiority. The public sector inspite of its defects is a driving force for sector in India because it takes initiative to develop infrastructure. Public sector provide foundations to the private sector. Private sector is superior in terms of efficiency and cost. Greater competition leads to more improvement and more innovative products. The private and public sector have to work together to develop the economic conditions both are equally responsible for it.