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Compare the economic activities of the private sector with that of the public sector. 

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Sectors in terms of ownership:

Public and Private sectors Industries can better be classified on the basis of their ownership under the following categories.:

(i) Public Sector Industries:  Industries owned by the state or its agencies are called public sector industries. As for example, the Indian Railways, the Iron and Steel Industry at Bhilai and Durgapur etc., Oil India Ltd. are some such industries.

(ii) Private Sector Industries:  Industries owned by individuals or firms formed by individuals are called private sector industries. For example, Tata Iron and Steel Company Limited or Reliance Industries Limited are private industries.

(a)  Contribution of Public Sector to the Economic Development of a Nation:  It is quite necessary to have a public sector because of the following reasons:

(i) Reasonable Cost :  The public sector provides many essential things at quite a reasonable cost which the private sector can not provide.

(ii) Set up Heavy Industries :

The public sector can set up heavy industries which require a lot of money, but private sector cannot do so.

(iii)  Benefit of the people :  The public sector has the benefit of the people above everything because its purpose is not to earn money but to benefit the people at all costs.

(iv) Benefit of the public especially :  The public sector is mainly held by the government which so often bears some of the cost for the benefit of the public especially for the poor people. People are given wheat, kerosene oil etc. at the lower prices than they buy from the market.

(v) Controlled by the government :  The public sector, mainly held and controlled by the government provides health and educational facilities free of cost or at the very nominal price.

(vi) Examples : Railways, Post Offices, Steel Plants, Oil India are some examples of the public sector activities. From the above account it becomes quite clear that the public sector contributes to the economic development of a nations and that is why it is necessary to have the public sector. All public sector enterprises greatly contribute to the economic development of a nation.

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