Prior to Independence, there were few ‘Public Sector’ Enterprises in the country.These included the Railways, the Posts and Telegraphs, the Port Trusts, theOrdinance Factories, All India Radio, few enterprises like the Government SaltFactories, Quinine Factories, etc. which were departmentally managed.The public sector is that portion of society controlled by national, state or provincial, and local governments. In the United States, the public sector encompasses universal, critical services such as national defense, homelandsecurity, police protection, fire fighting, urban planning, corrections, taxation, andvarious social programs.The public sector overlaps with the private sector in producing or providing certaingoods and services. The extent of this overlap varies from country to country, stateto state, province to province, and city to city. This overlap is most often seen inwaste management, water management, health care, security services, andshelters for homeless and abused people. Sometimes, service providers movefrom the public sector to the private. This is known as privatization, and has beentaking place in recent years on a large scale throughout the world. In other instances, a service may shift from the private sector to the public. This is lesscommon, but health care is one area where some governments are providing or experimenting with services previously furnished by private providers.Governments routinely hire private corporations to provide goods and services for the public sector, a practice known as outsourcing. Examples include themanufacture, construction, or maintenance of aircraft, military hardware, electronicand communications equipment, computers, roads, freeways, bridges, parks, andrecreation areas.
The phenomenal growth of private sector of India can be attributed to political will,financial reforms, usage of more advanced technology, young and large Englishspeaking working class. The 7-8 % of annual GDP growth rate India is the one of the highest growth rate in the world. The last 15 years witnessed a phenomenalrise of the growth of private sector in India. The opening up of Indian economy hasled to free inflow of foreign direct investment (FDI) along with modern cutting edgetechnology, which propelled India's economic growth.