The Role of Private Sector in Economic Development of India

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The Role of Private Sector in Economic Development of India

Though the Private Sector businesses are actuated by motives of private gain, it would be unkind to minimize the value of their contribution to the growth of our industrial life.

Private sector businesses play an important role in manufacturing industries and the export and import trade of the country. Transport and power generation also owed much to private enterprise. They are destined to play a more important role in our national economy.

India has adopted ‘mixed economy’ as the pattern of her industrial life. It involves the coexistence of both the public and the private sector. However, the respective fields of their operation will be determined from time to time by the needs of the country and the economic progress to be attained.

It will be unjust and wrong to say that private enterprise is not playing its part honestly in the industrial development of the country. The success gained by it in the development of industries like textiles, tea, sugar, jute, cement, steel, infrastructure, real-estate, information technology, etc., leaves no room for doubt that it can do as much and even more in other fields of industrial activities.

Private sector companies have earned world-wide reputation in service industry as well. The prominent Information Technology companies of India are Infosys, HCL Technologies, Tata Consultancy Services (TCS), Tech Mahindra, etc.

The question of resources is a vital factor in the growth of industries.

In a scheme for planned economic development, the public sector must, of course, play the dominant role. The two sectors – private sector and public sector – must exist side by side, each contributing its due share to the development of our industrial life.

In fact, there can be no real antagonism between the two sectors. A view is expressed and quite rightly, that even for the proper functioning of the public sector, it is desirable to have a competitive private sector.

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