Public Enterprises
What are the Objectives of Public Enterprises?
SOUMYA SINGH
In India, public enterprises have been assigned the task of realising the objectives laid down in the Directive Principles of State Policy.
Public sector as a whole seeks: (a) to gain control of the commanding heights of the economy, (b) to promote critical development in terms of social gain or strategic value rather than on consideration of profit, and (c) to provide commercial surplus with which to finance further economic development.
The main objectives of public enterprises in India are as follows:
1. Economic development:
Public enterprises were set up to accelerate the rate of economic growth in a planned manner. These enterprises have created a sound industrial base for rapid industrialisation of the country.
They are expected to provide infrastructure facilities for promoting balanced and diversified economic structure of development.
2. Self-reliance:
Another aim of public enterprises is to promote self-reliance in strategic sectors of the national economy. For this purpose, public enterprises have been set up in transportation, communication, energy, petro-chemicals, and other key and basic industries.
3. Development of backward Areas:
Several public enterprises were established in backward areas to reduce regional imbalances in development. Balanced development of different parts of the country is necessary for social as well as strategic reasons.
4. Employment generation:
Unemployment has become a serious problem in India. Public enterprises seek to offer gainful employment to millions. In order to protect jobs, several sick units in the private sector have been nationalised.
5. Economic surplus:
Public enterprises seek to generate and mobilise surplus for reinvestment. These enterprises earn money and mobilise public savings for industrial development.
6. Egalitarian society:
An important objective of public enterprises is to prevent concentration of economic power and
SOUMYA SINGH
In India, public enterprises have been assigned the task of realising the objectives laid down in the Directive Principles of State Policy.
Public sector as a whole seeks: (a) to gain control of the commanding heights of the economy, (b) to promote critical development in terms of social gain or strategic value rather than on consideration of profit, and (c) to provide commercial surplus with which to finance further economic development.
The main objectives of public enterprises in India are as follows:
1. Economic development:
Public enterprises were set up to accelerate the rate of economic growth in a planned manner. These enterprises have created a sound industrial base for rapid industrialisation of the country.
They are expected to provide infrastructure facilities for promoting balanced and diversified economic structure of development.
2. Self-reliance:
Another aim of public enterprises is to promote self-reliance in strategic sectors of the national economy. For this purpose, public enterprises have been set up in transportation, communication, energy, petro-chemicals, and other key and basic industries.
3. Development of backward Areas:
Several public enterprises were established in backward areas to reduce regional imbalances in development. Balanced development of different parts of the country is necessary for social as well as strategic reasons.
4. Employment generation:
Unemployment has become a serious problem in India. Public enterprises seek to offer gainful employment to millions. In order to protect jobs, several sick units in the private sector have been nationalised.
5. Economic surplus:
Public enterprises seek to generate and mobilise surplus for reinvestment. These enterprises earn money and mobilise public savings for industrial development.
6. Egalitarian society:
An important objective of public enterprises is to prevent concentration of economic power and