Public Versus Private Participation | General Economics

Public Sector and Private Sector

Public Sector is controlled by government to manufacture Power, Steel, Aluminium, copper, mining etc to provide employment to common man and control the country’s economy.

The Public Sector Unit tends to overstaff resulting in the increase in cost production.

Due to the lack of modernisation, they do not use their surpluses in the form of Capital.

PSU provides employment to the millions of people around the country.

They monopolise the market.

The PSUs could not survive due to so many controls and overruns.

  • Navratnas in PSU
  • IOC
  • Petrochemical Corp. (IPCL)
  • ONGC
  • BP Corporation. Ltd
  • HPCL
  • NTPC
  • SAIL
  • BHEL
  • Mahanagar Tele. Nigam Ltd (MTNL)

Private Sector

Privatisation will help:

  • Promote efficiency
  • Reduce political influence
  • High quality product
  • Better services
  • Reduces wastage and optimises resources.

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