Explain the difference between public and private sector of Indian economy

Sectors of Indian Economy (10)

Explain the difference between public and private sector of Indian economy with example

  • Answer:
    1. In the public sector the government owns most of the assets andprovides all the services while in the private sector the ownership of assets and delivery of services is in the hands of private individuals and companies.
    2. Railways, Post office are examples of public sector whereascompanies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited are examples of private sector.
    3. The motive of the public sector is not just to earn profits whereasactivities in the private sector are guided by the motive to earn profit.
    4. Government raises money through taxes to meet expenseswhereas private sector organizes its own funds.
    5. Public sector charges less for their services whereas private sectorcharges much more.

     

  • Exam Year: 2025