BUSINESS STUDIES UNIT-3 CBSE|PART 2|PRIVATE, PUBLIC AND GLOBAL ENTERPRIS...

PRIVATE SECTOR AND PUBLIC

SECTOR

There are all kinds of business

organisations — small or large,

industrial or trading, privately owned

or government owned existing in our

country. These organisations affect our

daily economic life and therefore

become part of the Indian economy.

Since the Indian economy consists of

both privately owned and government

owned business enterprises, it is

known as a mixed economy. The

Government of India has opted for a

mixed economy where both private and

government enterprises are allowed to

operate. The economy, therefore, may

be classified into two sectors viz.,

private sector and public sector.

The private sector consists of

business owned by individuals or a

group of individuals, as you have

learnt in the previous chapter. The

various forms of organisation are

sole proprietorship, partnership,

joint Hindu family, cooperative

and company.

The public sector consists of

various organisations owned and

managed by the government. These

organisations may either be partly or

wholly owned by the central or state

government. They may also be a part

of the ministry or come into existence

by a Special Act of the Parliament. The

government, through these enterprises

participates in the economic activities

of the country.

The government in its industrial

policy resolutions, from time-to-time,

defines the area of activities in which

the private sector and public sector are

allowed to operate. In the Industrial

Policy Resolution 1948, the

Government of India had specified the

approach towards development of the

industrial sector. The roles of the