Explain how public sector contributes to the economic development of a nation.
The public sector contributes to the economic development of a nation in the way explained below:
(i) Public sector raises money through taxes and other ways to meet expenses on the services like construction of roads, bridges, railways etc. for all people of India.
(ii) Goverment runs railways, shipping, aeroplanes, metro and local trains. The government undertakes heavy spending and ensure that such facilities are available for everyone.
(iii)The Government in India buys wheat and rice from farmers at a ‘fair price’. This it stores in its godowns and sells at a lower price to consumers through ration shops. The government has to bear some of the cost. In this way, the government supports both farmers and consumers
