Role of public sector in the economy from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
The public sector plays a crucial role in the economy by providing essential goods and services to the citizens. It includes government-owned or controlled enterprises that operate in various sectors such as transportation, communication, energy, and banking. These enterprises are established with the aim of promoting public welfare and economic development. One of the primary functions of the public sector is to ensure the equitable distribution of resources and opportunities in the economy. By providing goods and services at affordable prices, the public sector helps in reducing income inequality and improving the standard of living for the less privileged sections of society. This, in turn, contributes to social stability and cohesion. Moreover, the public sector plays a key role in promoting economic growth and development. It invests in infrastructure projects such as roads, bridges, and ports, which are essential for the smooth functioning of the economy. Additionally, public sector enterprises contribute to industrialization and technological advancement by investing in research and development activities. Furthermore, the public sector acts as a regulator in the economy by setting standards, monitoring compliance, and enforcing regulations. It ensures fair competition in the market and protects consumers from exploitation by private enterprises. By regulating key sectors such as healthcare, education, and utilities, the public sector ensures that these essential services are accessible to all citizens.- The public sector is an indispensable part of the economy that plays a crucial role in promoting social welfare, economic development, and regulatory oversight. Its presence is essential for ensuring a balanced and inclusive growth trajectory for the nation.
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