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.

Solution

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.

Some More Questions From Indian Economy 1950-1990 Chapter

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Indian Economy 1950-1990

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.

Some More Questions From Indian Economy 1950-1990 Chapter

In India who is the chair person of Planning Commission?

Who formulate plans in India?

Who floated the idea of planning in India first of all?

How many plans have been completed in India so far?

Define capitalist economy.

What is a socialist economy?

What is mixed economy?

What is meant by economic growth?

What structural change undergoes with development of the economy?

Name the sectors from which the GDP of a country is derived.

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