Public And Private Sectors Online Test 8th Social Science Lesson 23 Questions in English

India was basically an Agrarian economy with a weak industrial base at the time of independence. India experienced very poor economic and social over heads with high level of poverty, Literacy and Unemployment in the country.

The Economic Growth of India may be sustained at a maximum rate, if private sector and public sector joins together. Mixed Economic system which consists of both private and public enterprises was followed by India for its economic growth.

The Government of India has opted for a mixed economy where it is mainly classified into Public sector and Private sectors.

Public sector Industries are under the ownership of the Government and it enables the full growth in an economy. Private sectors are under the ownership of private people which is on profit motive.

The Sector which is involved in the activities of providing the Government goods and services to the general public is called as Government Sectors. These sectors are controlled owned and run by Central Government, State Government or a Local Government.

When India achieved Independence in 1947, it was primarily an agricultural country with a weak industrial base. There were only 18 Indian ordinance factories which were established by the British for their own profit and to rule the subcontinent. The National consensus was in favour of rapid Industrialisation of the economy as it was the key to the economic development.

The First Industrial Policy Resolution was announced in 1948 laid down broad contours of the strategy of Industrial development.

The Prime objective of the Bombay Plan 1940 was to achieve a balanced economy to raise the standard of living of the population masses. The important people associated with this plan were J.R.D.Tata, G.D.Birla, P.Thakurdas, Kasturbhai Lalbhai, Sir Shri Ram, A.D. Shroff, Dr.John Matthai

The Planning commission of India was created by March 1950 Resolution. The Finance minister John Mathai announced the setting up of the Planning Commission in his 1950 Budget.

The Industrial Act was enacted in 1951 with the objective of empowering the Government to take necessary steps to regulate Industrial development.

The Former Prime Minister Jawaharlal Nehru promoted an economy based on import substitution industrialisation and advocated a mixed economic system. He believed that the establishment of basic and heavy industry was fundamental to the development and modernisation of Indian Economy.

India’s second five year plan (1956-60) and the Industrial Policy Resolution of 1956 emphasized the development of Public sectors to meet Nehru’s National Industrial Policies.

Jawaharlal Nehru vision of developing of Industries in Modernisation of the Indian Economy idea was carried forward by Dr V. Krishnamurthy who is known as the Father of Public Sector Undertakings in India.

The 1991 industrial policy allowed greater freedom to the private sector. It also invited foreign direct investments from business houses outside India. Thus multi-national corporations operated in more than one country entered into the Indian economy.

There are two types of Public sector organisations. Either the government fully finances them or it holds more than 51% of the total share capital of the company which comes under the various ministries.

Public sector is the largest sector in India with service motive. It works for the upliftment of the people by providing the following services to the people: Postal Services, Railway services, providing security, Education and Health facilities at low cost and generation of employment Opportunities etc.

There are three main organs of the public sector in which the administration by a government departments are common in almost all of the countries.

The joint sector companies are governed by a company law and controlled by the government as principal major shareholders.

Public corporations are the establishment of public corporation by the state of the parliament of legislature. Some of the examples of this kind of organisations are LIC, Air India, and The Reserve bank of India

The Public sector of India owes its origin in the 1956 Industrial policy Resolution of the Government of India. This resolution classified Industries into three categories.

The 1956 resolution of India classified Industries into three categories Schedule-A: Public sector owned by Government Schedule-B: The Industries in which private sector could supplement the efforts of the state sector and the state taking the sole responsibility for starting new units. Schedule-C: The Remaining Industries which belongs to private sector.

Public sectors are divided into nine categories. These enterprises which are exclusively meant for High technology industries are Atomic Energy.

Public sectors plays an entrepreneurial role in capital intensive industries like iron ore, Petroleum, Chemicals, Fertilizers, Mining, Ship Building and Heavy Engineering.

The Public enterprises also to have high control of the "Commanding Heights of the Economy". For example Defence, Banks, Coalmines, Oil, Steel etc.

NITI Aayog is a policy think tank and a truly advisory body formed on January 1, 2015.

Socio-Economic Development is the process of social and economic development in a society. This development is measured with indicators such as GDP, Life expectancy, Literacy, Levels Of employment etc.

GDP supports in developing Socio Economic development. The proportion of GDP by the Industrial sectors both private and Public sector has been increased results in increasing government funds and increase in public spending.

According to the 2011 census of India, Life expectancy in India is 65.80 for men and 68.33 for women. Government provides high degree of health measures through various programmes.

The Union Government of India announced National Health Production Scheme (NHPS) in the 2018-19 Budget. This serves poor and vulnerable families.

Sarva Siksha Abhiyan is government of India's flagship programme. It is implemented for making free and compulsory education to the children of 6 to 14 years with life skills.

Education skill plays a vital role in the socio economic development. The government also introduced RMSA, Smart class, E-learning, free Computer skill classes and eco-friendly environment for studying and Digital India for increasing the level of quality in education.

The increase in urban population because of employment search made the government to start the Smart City scheme. On 7 September 2019, Aurangabad Industrial City in Aurangabad, Maharashtra was inaugurated as the first Greenfield industrial smart city of India.

Government sector provides housing facilities, clean drinking water facilities and sanitary facilities under clean India planning. By providing these facilities the Life cycle of the people increases.

Public sector has created millions of jobs to tackle the unemployment problem in India. it has also contributed a lot towards the improvement of working and living conditions of workers by serving as a Model Employer.

Some public enterprises have done much to promote India's export. The STC, MMTC, Hindustan Steel Ltd, Bharat Electronics Ltd, The Hindustan Machine Tools etc. have done well in export promotion.

Some public sectors were started to produce goods which were formerly imported to save foreign exchange. ONGC, BHEL, IOCL have saved foreign exchange by way of import substitution.

A company must be first be a Miniratna and have four independent directors on its board before it can be made a Navratna

Based on six parameters which include net profit, net worth, total manpower cost, Total cost of production cost of services, PBDIT, Capital employment score of sixty out of 100 is needed for Navratna Industries.

The segment of a national economy that is owned controlled and managed by private individuals or enterprises are known as private sectors. These are divided on the basis of the sizes. They can be created in two ways.

Even the vast expansion of public sector, the contribution of private sector continued to be very large. This was due to the development of Medium, small and very small or Micro industries.

The contribution of private sectors towards national production is higher than the public sector. Private sector is dominated in Road, ship, and Airways transport and also in Consumer industries.

The main function of private sector is to create Innovations and modernization. The profit motive drives them to invent, innovate and manage the productive activities in a scientific manner.

Agriculture and other allied activities like dairying, Animal husbandry, poultry etc. are the most dominant sector of India. This is totally under the control of the Private sector.

India being a mixed economy has assigned a great importance on the private sector of the country. The major portion of the industrial sectors is engaged in non- strategic and light areas is under the control of private sector.

The Main functions Of private sector includes various factors like developing and maintaining infrastructure and services. Promote and expand existing business and human capital development. It also promotes small, micro and medium enterprises through supply side measures and demand side measures and attracts investment in the city.

The Public sector industries ensure the proper wages for the workers and it does not allow concentrating huge wealth in few people.

Protecting sick industries is done by some public sectors to prevent closing down. It prevents unnecessary locking of capital, land, Building, machinery etc.

There is a clear shift in employment in to secondary and tertiary sector. Urban population is increased by the people movement towards urban areas for employment. Lot of private sectors are encouraged to start industries in Rural and backward areas by providing tax benefits.

Public sectors have located their plants in backward parts of the country. These areas lacked industrial and civic facilities. Public enterprises have developed these facilities which bring complete transformation in the Socio-economic life of people in these regions.

NITI Aayog replaced 65 years of Planning commission. The Power of allocating funds to the States and ministries of planning commission are now transferred to the Finance Ministry.