Role of public and private sector

Role of public and private sector

1. Topic: Role of Public sector and Private sector IN BUSINESS ENVIRONMENT CENTRE FOR MANAGEMENT STUDIES 1 BUSINESS ENVIRONMENT

2. What is Public Sector? What is Private Sector? Role of Public Sector Role of Private Sector Advantages and Disadvantages of Public Sector Advantages and Disadvantages of Private Sector Performance of Private Sector in Indian economy Performance of Public Sector in Indian economy Conclusion Contents 2 BUSINESS ENVIRONMENT

3. The public sector is that portion of an economic system that is controlled by national , state or local governments. The composition in most countries it includes defence, public health ,public education etc. The main intention of the public sector is to provide quality services and product to the citizens. Examples : SAIL, Indian Oil Corporation, Coal India What is Public sector? 3 BUSINESS ENVIRONMENT

4. The private sector is part of a country’s economic system that is run by individual or group of individuals. The most private sector organizations are run with the intention of making profit. The capital are arranged by the owners. It is managed without any government participation. Examples : Tata Consultancy Services,ICICI Bank Limited What is Private sector? 4 BUSINESS ENVIRONMENT

5. 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. Role of Public sector 5 BUSINESS ENVIRONMENT

6. 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. Role of Private sector 6 BUSINESS ENVIRONMENT

7. Advantages and disadvantages of public and private sector 7 BUSINESS ENVIRONMENT

8. Increase in employment. Government earnings Rural development. National income Social order. Infrastructure development. Advantages of Public sector 8 BUSINESS ENVIRONMENT

9. Political interference. Inefficient management. High degree of corruption. Slow decision making. Disadvantages of public sector 9 BUSINESS ENVIRONMENT

10. Employment generation. Helpful for development. Faster decision makings. Less interference in internal affairs by politicians or government. Highly skilled labours and management. Advantages of private sector 10 BUSINESS ENVIRONMENT

11. Smaller resources . Less emphasis on social welfare. Possibilities of conflicts among owners. Lack of public confidence. Disadvantages of private sector 11 BUSINESS ENVIRONMENT

12. 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. Performance of public sector in Indian economy 12 BUSINESS ENVIRONMENT

13. Financial reforms lead to more investment of foreign companies in India. Usage of more advanced technology. People are now getting more quality products and services. Increasing the demand of people by introduction of new products and services. Performance of private sector in Indian economy 13 BUSINESS ENVIRONMENT

14. 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. CONCLUSION 14 BUSINESS ENVIRONMENT

15. http://en.m.wikipedia.org www.yourarticlelibrary.com www.indiastudychannel.com www.economicsdiscussion.com Bibliography 15 BUSINESS ENVIRONMENT

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