Though public sector is very essential for many industries, many public sector undertakings incure huge losses and are a drain on the economy's resources. Discuss the usefulness of public sector undertakings in the light of this fact.

Usefulness of public sector undertakings : There is no doubt that many public sector undertakings are incurring huge losses and are a drain on the country's resources. Inspite of this, they are very useful due to following reasons:

1. They create a strong industrial base.

2. They prevent concentration of economic power.

3. They help in the development of backward areas.

4. They seek to develop infrastructure.

5. They provide employment.

6. They promote import substitution.

7. They promote equality of income and wealth distribution.

8. They seek to remove regional imbalance in growth.