Sectors of indian economy-5 Flashcards
what are public and privatesectors? give some examples.
In the public sector, the government
owns most of the assets and provides
all the services. In the private sector,
ownership of assets and delivery of
services is in the hands of private
individuals or companies. Railways or
post office is an example of the public
sector whereas companies like Tata
Iron and Steel Company Limited
(TISCO) or Reliance Industries
Limited (RIL) are privately owned.
whats the main diff between private and public sector
Activities in the private sector are
guided by the motive to earn profits.
To get such services we have to pay
money to these individuals and
companies. The purpose of the public
sector is not just to earn profits.
Governments raise money through
taxes and other ways to meet expenses
on the services rendered by it. Modern
day governments spend on a whole
range of activities.
why are the things needed by a society not provided by private setcor
There are several things needed by
the society as a whole but which the
private sector will not provide at
a reasonable cost.
why arent society-needed things catered by the private sector
Some of
these need spending large sums of
money, which is beyond the capacity of the private sector. Also, collecting
money from thousands of people who
use these facilities is not easy. Even if
they do provide these things they
would charge a high rate for their
use. Examples are construction of
roads, bridges, railways, harbours,
generating electricity, providing
irrigation through dams etc. Thus,
governments have to undertake such
heavy spending and ensure that
these facilities are available for
everyone
what are certain activites that the private sector cannot provide
There are some activities, which
the government has to support. The
private sector may not continue their
production or business unless
government encourages it. For
example, selling electricity at the cost
of generation may push up the costs
of production of goods in many
industries. Many units, especially
small-scale units, might have to shut
down. Government here steps in by
producing and supplying electricity
at rates which these industries can
afford. Government has to bear part
of the cost.
how does govt support the farmers
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.
what are services that only govt can give
There are a large number of
activities which are the primary
responsibility of the government. The
government must spend on these.
Providing health and education
facilities for all is one example. Running proper schools
and providing quality education,
particularly elementary education, is
the duty of the government. India’s size
of illiterate population is one of the
largest in the world
what are other things the govt needs to take care of
Similarly, we know that nearly half
of India’s children are malnourished
and a quarter of them are critically ill.
The infant mortality rate of
Odisha (40) or Madhya Pradesh (48)
is higher than some of the poorest
regions of the world. Government
also needs to pay attention to aspects
of human development such as
availability of safe drinking water,
housing facilities for the poor and food
and nutrition. It is also the duty of
the government to take care of the
poorest and most ignored regions of
the country through increased
spending in such areas.
