Public and Private Sectors in

India
Prof. Dhaval Bhatt
 Public Sector

Most of the public sector undertakings had been organized as

Companies. Principal characteristics:
1. Government would own 51% or over of the whole of the capital
stock.
2. All the directors were appointed by the Government.
3. It is a corporate body created under the Companies Act.
4. It is created by an executive decision of the Government without
Parliament’s specific approval.
5. Its funds are obtained from the Government and in some cases, from
private shareholders and from the revenue earned through the sale of
its goods and services.
 Objectives of Public Sector

The public sector enterprises had a multitude of objectives:

• To help in rapid economic growth and industrialization of the country and
create the necessary infrastructure for economic development.
• To earn return on investment and generate resources for development
• To promote redistribution of income and wealth
• To create employment opportunities.
• To promote balanced regional development
• To assist the development of small-scale industry and ancillary industries