Sectors In Terms Of Ownership: The economic activities can also be classified on the basis of ownership which means who owns the assets, and who is responsible for delivery of services. On the basis of ownership there are two sectors of the economy i.e. Public sector and Private sector.
Public and Private Sectors : In the public sector, government owns most of the assets and provides all the services therefore it is also called state sector or government sector. In the private sector, ownership of assets and delivery of services lie in the hands of individuals or private companies.
Both these sectors are involved in major activities of the economy, except some activities. All spheres of activities are open to either of them.
However, the public sector predominates in certain areas like mining, power generation, transport, healthcare, education etc, which belong to the infrastructure development or core activities.
The private sector predominates in agricultural and allied activities, manufacturing industries, manufacturing of goods, trade, hotel etc. Both sectors are seen in almost all fields.
Examples of private sector entities are Hindustan Unilever, Bajaj Auto, Tata Iron and Steel Company Limited (TISCO), Indian Hotels Company Limited etc.
Examples of public sector organisations are Indian Railways, Fertiliser Corporation of India Limited, Bharat Heavy Electricals Limited etc.
Profit Motives of Various Sectors: Private sector activities are centered around profit motives and service is of secondary importance. Public sector activities are determined by consideration of social welfare and providing basic amenities for the people. Here, profit motives are of secondary importance.
Role of Government's Investment :-Infrastructure comprises development of transport, power, communication etc. Expenditure on development of infrastructure is known as social overhead cost. Developing infrastructure require huge money that private sector cannot do. So government have to undertake heavy spending.
Following are the work done by government sector
Other activities which are primary responsibility of the government include:-
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