Public Sector Units: The enterprises which are completely owned, controlled and regulated by the Government are known as public sector units or PSUs. Public sector units made a commendable contribution to the Indian economy.
Four contributions of PSUs to the Indian economy are as follows:
1. Share in National Income—About one fourth of India’s National Income is generated in the public sector.
2. Share in Capital formation—The share of the Public Sector in total capital formation reached a peak of 63.7 during the Third five Year Plan. Presently, it has been around 30 per cent.
3. Public Sector Enterprises and Employment—The expansion of the public sector has witnessed a considerable increase in employment. Of the total employment in the organized segment, the public sector accounts for about 70 per cent and the private sector only 30 per cent.
4. Command heights of the economy—The public sector is in command in almost all the strategic sectors of the economy like coal, oil refining, electricity, iron and steel, paper and newsprint etc. In all, it holds a dominating position in the production of 50 types of industrial commodities and services which are of decisive significance for the economic development of the country.
