RAJIV ACADEMY
For Technology & Management
Approved by ACTE,NCTE,Ministry of HRD,Govt. of India
Affiliated to AKTU-Lucknow & Dr BR Ambedkar University Agra
PRESENTATION ON-:
PUBLIC SECTOR
PRESENTED BY-
SUBMITTED TO- Muskan Sanehi
Ms. Varsha Sharma BBA 2nd Sem.
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DEFINITION OF PUBLIC SECTOR
The Public Sector consists of businesses that are owned and controlled by
the government of a country. The ownership and control of the central or
state governments in these organisations are either complete or partial. But
it still holds a majority stake and makes every single decision regarding
running the entity.
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CHARACTERISTICS
The public sector in India is a significant component of the economy and has distinct characteristics that
shape its operations and impact:)
• Government Ownership and Control: The public sector in India primarily consists of organizations and enterprises
owned and controlled by the government at various levels (central, state, and local).
• Social Welfare Orientation: Unlike the private sector, which focuses on profit maximization, the public sector aims to
provide essential services and goods to the public, promoting social welfare and equitable distribution of resources.
• Large Scale Operations: Public sector enterprises (PSEs) in India often operate on a large scale, covering industries
such as energy, transportation, infrastructure, and telecommunications, which require substantial investment and
resources.
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• Regulated Environment: The public sector operates within a regulated framework,
adhering to policies and regulations set by the government to ensure transparency,
accountability, and alignment with national objectives.
• Focus on Infrastructure Development: A significant portion of public sector efforts
is directed towards developing critical infrastructure such as roads, railways, ports,
and power plants, which are essential for economic development and connectivity.
• Monopoly in Certain Sectors: In some sectors, the public sector holds a monopoly or
dominant position, such as in defense production, atomic energy, and certain public
utilities, ensuring control over strategic and essential services.
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IMPORTANCE OF PUBLIC SECTOR
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The public sector is important for the following reasons:
• It helps in providing essential services to the citizens
• It plays a key role in the economic development of a country
• It provides development opportunities
• It helps in the development of infrastructure
• It encourages private investment
• It promotes exports
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MAJOR PROBLEMS FACED BY INDIAN PUBLIC
SECTOR:
Managerial Problems: The public sector is plagued by red-tapism, bureaucracy, and
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corruption. These problems have led to inefficiency and poor quality of products and
services.
Financial Problems: Public sector enterprises are often dependent on the
2 government for their financial needs. This dependence has led to a lack of autonomy
and accountability.
Operational Problems: Public sector enterprises are often hampered by outdated
3 technology and processes. This has led to low productivity and high costs.
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ROLE OF PUBLIC SECTOR
The steps which need to be taken by the Public Sector
• The public sector needs to be more efficient and effective.
• There is a need for better planning and coordination between the various agencies of the
government.
There is a need for more transparency and accountability in the functioning of the public
sector.
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The public sector needs to The public sector needs to
adopt new technologies and be more customer-oriented
processes to improve its
in its approach.
efficiency.
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ADVANTAGES
Public sector organizations offer important services such as
healthcare, education, and transportation to all individuals,
regardless of income or social standing.
Organizations in the sector are frequently founded to
address social concerns such as poverty, inequality, and
prejudice.
Economic stability: By providing jobs, products, and services
to the public, such enterprises play a vital role in preserving
economic stability.
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DISADVANTAGES
Institutions such as the The sector is responsible
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military and intelligence
agencies must defend the
for constructing and
nation's national security. maintaining economic
growth-critical
infrastructure such as roads,
They are often criticized for
bridges, and public transit.
being bureaucratic and slow
to adapt to changing
demands.
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CONCLUSION
The Indian public sector has been facing several challenges in recent
years. These challenges have adversely affected the performance and
efficiency of the public sector. To overcome these challenges, the
public sector needs to undertake many reforms. These reforms will
help the public sector regain its lost glory and become an engine of
growth for the country once again.
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THANK YOU
Presented by : Muskan Sanehi
