GOVERNMENT SECTOR IS BETTER THAN PRIVATE SECTOR:

There is nobody in this country who got rich on their own. Nobody. You built a factory out there - good for
you. But I want to be clear. You moved your goods to market on roads the rest of us paid for. You hired
workers the rest of us paid to educate. You were safe in your factory because of police forces and fire
forces that the rest of us paid for. You didn't have to worry that marauding bands would come and seize
everything at your factory-Elizabeth Warren-Elizabeth Warren (born 1949) is an American academic and
politician, and the current senior U.S. Senator from Massachusetts and a Democrat
Good morning friends.We the people of Mahalanobis group are here to present our views in favour of
Government sector in the debate Government sector is better than the Private sector.
Imagine a country where only private sector thrives, where every individual lives for their own. No one
cares about the common good. Where profit making is the whole soul aim and motivation. Where the rich
gets richer and the poor gets poorer. Where money rules the country and plutocracy prevails in the
society. Do you think such a state would be desirable?
No my dear friends, such a state will be a havoc for the society at large. For instance if we talk about
Indus valley Civilisation which existed about 5000 years back, it was deduced by the historians that the
society was ruled by a small group of business class people and the common good was neglected. As a
result, the civilization slowly declined after the city suffered negligences like encroachment of houses on
roads, poor drainage system, insufficient defense mechanism to protect from foreign forces etc.
Since 1948, when for the first time the importance of the public sector in the Indian economy was
recognized, the public sector has experienced a phenomenal growth both in terms of number and volume
of investment. The Government has made sustained efforts to break the vicious circle of poverty and
underdevelopment by setting up public sector enterprises or by nationalizing certain key industries. The
most recent instances are the nationalization of the bigger commercial banks and that of coal mines.
1. EDUCATION & MEDICAL SECTOR:
A) Its a well known fact that the main aim of the Government sector is public interest and
welfare.
B) It provides services to the people at affordable prices or subsidized rates. Be it education, or
medical facilities Government sector has tried to make these services available to the poorest of
the poor section of the society.
EXAMPLES & IN SUPPORT FACTS:
C) According to current estimates, 80% of all schools are government schools making the
government the major provider of education. only 27% of Indian children are privately
educated. According to some research, private schools fail to provide education to the poorest
families. According to the latest DISE survey, the percentage of untrained teachers
(parateachers) is 54.91% in private, compared to 44.88% in government schools and only
2.32% teachers in unaided schools receive inservice training compared to 43.44% for government
schools.
D)

A significant feature of India's secondary school system is the emphasis on inclusion of

the disadvantaged sections of the society.

E) Professionals from established institutes are often called to support in vocational training.
Another feature of India's secondary school system is its emphasis on profession based vocational
training to help students attain skills for finding a vocation of his/her choosing. A significant new
feature has been the extension of SSA to secondary education in the form of the Rashtriya
Madhyamik Shiksha Abhiyan.
A special Integrated Education for Disabled Children (IEDC) programme was started in 1974 with a focus
on primary education but which was converted into Inclusive Education at Secondary Stage . Another
notable special programme, the Kendriya Vidyalaya project, was started for the employees of the central
government of India, who are distributed throughout the country. The government started the Kendriya
Vidyalaya project in 1965 to provide uniform education in institutions following the same syllabus at the
same pace regardless of the location to which the employee's family has been transferred.
F)

As of 2012, India has 468 Government universities, and 191 private universities. The
Government has launched Rashtriya Uchchattar Shiksha Abhiyan to provide strategic
funding to State higher and technical institutions. A total of 316 state public universities and
13,024 colleges will be covered under it.

Some institutions of India, such as the Indian Institutes of Technology (IITs), Indian Institute of Science
and University of Mumbai have been globally acclaimed for their standard of undergraduate education in
engineering.
Many private colleges and universities do not fulfill the required criterion by the Government and central
bodies (UGC, AICTE, MCI, BCI etc.) and take students for a ride.
2.

CONSTRUCTION OF INFRASTRUCTURE:
A)

Originally, the activity of the public sector enterprises was to be limited to a definite
field of basic and key industries of strategic importance. There were certain fields where the
private enterprise was shy to operate as they involved huge investment or risk.

B) Moreover these were the investments which would not have fetched handsome and
immediate profits for the private sector. It was the public sector alone which could build
the economic overheads such as power, transport, etc.
C)

It succeeded in creating the necessary infrastructural base for sustained industrial

growth. It has tremendously boosted the technological capabilities.

D) The public enterprises have firmly established the foundation for the construction of a
self-generating, industrial economy.
EXAMPLES & IN SUPPORT FACTS:
E) The State has successfully implemented various schemes of multi-purpose river
projects,, hydroelectric projects, transport and communication, atomic power,, steel,

etc. It has vastly contributed in the fields such as nuclear or steel technology,
aeronautics, defense materials, ship-building and so on. It has laid down a good network
of transport and communications.
3.

DEVELOPMENT OF AGRICULTURE:
A) The public sector has an important role in the field of agriculture as well.
B) The public sector assists in the manufacture of fertilizers, pesticides, insecticides and
C)

mechanical implements used in agriculture.

Through the various research institutes the public sector has augmented agricultural
productivity by introducing new high-yielding variety of seeds, preventing crop

diseases
D) and innovating new agricultural practices.
Because this sector do not have much higher returns to the investors and contributes only
15.7% to the GDP of the country, but this sector employs around 58% of Indias population
till now India being an agrarian country.

4.

REMOVAL OF REGIONAL DISPARITIES:

A) In the pre-independence period a major problem was regional economic disparities.
B) There were certain areas where there was a heavy concentration of industrial activity.
C) On the other hand, there were certain backward areas which went without industries.
Industrial development was highly lopsided. Thus Maharashtra, West Bengal, Gujarat and
Tamil Nadu, etc., were highly developed industrially. States like Orissa, Assam, Bihar, Madhya
Pradesh etc. were highly backward. Besides, industries used to be gravitated towards the
metropolitan areas, rather than the smaller towns.
D) But imbalanced economic development is as bad as underdevelopment.
Through the extension of public sector enterprises the Government desired to remove such
regional imbalances.
E) The State, consequently, participated in the industrial growth of the less developed
areas by setting up public enterprises. Normally the private sector cannot be induced to
start industries in the backward areas. White locating new public enterprises the claims of
the relatively backward areas are given due consideration. The policy of dispersal of
Industries aims at removing regional disparities.
F)

A conscious attempt has been made-in the successive five-year plans to accelerate the
development of relatively backward areas.

5.

EMPLOYMENT OPPORTUNITY:

1.

The growth of the public sector has led to the expression of gainful employment
opportunities.

2.

The development of industries in particular regions especially backward regions of the

country like Bihar, Jharkhand, Odisha etc created a number of indirect jobs in addition
to direct jobs in the factories and offices.In addition to the primary effect of the public
sector in creating employment opportunities.

6.

MODEL EMPLOYER
1.

The public sector has been the pacesetter in the field of labour welfare and social
security. The State aims at establishing an industrial democracy which will provide a fair
deal to the workers.

2.

The public enterprises have been investing liberally on matters pertaining to labour
welfare and social security. Not only the wages have been substantially increased,
conditions of service have vastly improved. For instance, wages in the coal industry have
nearly trebled since nationalization and many other amenities also are being provided.
EXAMPLES & IN SUPPORT FACTS:

For instance, wages in the coal industry have nearly trebled since nationalization and many other
amenities also are being provided.
7.

PREVENTING CONCENTRATION OF POWER:

1.

Preventing private monopolies and concentration of economic power is the avowed

objective of our economic policy.

2.

Nationalization is considered as an antidote for the concentration of economic power in

private hands.
Today, the public sector not only occupies the commanding heights in the economy, it has
also penetrated into the production of essential consumer goods. The share of the public
sector in the overall industrial production, has substantially gone up. This has effectively
curbed the concentration of economic power. It has created a countervailing force against the
growth of larger industrial houses.

8.

EXPORT PROMOTION:
1.

The public sector enterprises are substantially contributing to the country's export
earnings. The public sector has-built up a reputation abroad in selling plants, heavy

equipment's, machine-tools and other industrial products. She has created a good will in
the third world countries-for her consultancy services and technical know-how.
9.

IMPORT SUBSTITUTION:
1.

The public sector enterprises have also-succeeded in their efforts in import

substitution. Today many commodities starting from basic drugs to highly advanced
equipments are manufactured in the public sector, which previously used to be
imported from abroad. In certain fields public enterprises were specially started to reduce
imports from abroad, and achieve self-sufficiency.

2.

Public enterprises like Hindustan Antibiotics Ltd. or Bharat Electronics Ltd. or

Hindustan Machine Tools etc., have done a remarkable job in import substitution. This
has resulted in saving of precious foreign exchange.

3.

Today there is a special drive in the public enterprises to utilize indigenous materials
and domestic skill.

10. PRODUCTION & SALES:

1.

While taking up the production of any goods or services, the private entrepreneur is
guided solely by the profit motive.

2.

To maximize profit, he even does not hesitate to exploit the consumers and can even
compromise with the quality of the product. Very often maximization of profit is achieved
at the cost of public welfare. It is only the public sector which can produce according to
special needs. Sometimes it may even sell at a price lower than its cost.

11. RESEARCH & DEVELOPMENT:

1.

Today no country can industrially prosper without research and development.

2.

Such research is highly essential for the introduction of new goods and new technologies of
production, lowering the cost of production and improving the quality of the product.

3.

In this respect the public sector is playing a crucial role. A lot of research activities are
being carried on in the laboratories of the public sector undertakings.

12. ESTABLISHMENT OF A SOCIALIST PATTERN:

1.

In India the public sector was desired to be extended rapidly so as to establish a socialist
pattern of economy.

2.

There was abject misery and poverty all round prior to the adoption of planning.

3.

Through our planned effort we not only wanted rapid economic growth but also social
justice.

4.

The public enterprises aim at achieving equality of opportunity and reduction of economic
inequalities.

Mix of private and public sector

BOT

A type of arrangement in which the private sector builds an infrastructure project, operates it and
eventually transfers ownership of the project to the government. In many instances, the
government becomes the firm's only customer and promises to purchase at least a predetermined
amount of the project's output. This ensures that the firm recoups its initial investment in a
reasonable time span.

PPP

In some types of PPP, the cost of using the service is borne exclusively by the users of the service
and not by the taxpayer. In other types (notably the private finance initiative), capital investment
is made by the private sector on the strength of a contract with government to provide agreed
services and the cost of providing the service is borne wholly or in part by the government.
Government contributions to a PPP may also be in kind (notably the transfer of existing assets.PPP
is predominantly used in infrastructure projects.

Conclusion

There should be good balance between public sector and private sector in the economy of any
country.