Question

Write briefly explain the history of public sector.

Answer 1

History of Public Sector:

1. When India achieved independence in 1947, it was primarily an agricultural country with a weak industrial base. It is established for their own economic interest and rule the subcontinent with brute force.
2. The first Industrial Policy Resolution announced in 1948 laid down broad contours of the strategy of industrial development.
3. The Planning Commission was formed in March 1950 and the Industrial Act was enacted in 1951.
4. Pandit Jawaharlal Nehru believed that the establishment of basic and heavy industry was fundamental to the development and modernization of the Indian economy.
5. His vision was carried forward by Dr. V. Krishnamurthy and the Indian statistician Mahalanobis.
6. The 1991 industrial policy allowed greater freedom to the private sector and foreign direct investment was invited from business houses outside India.
7. Thus, multinational corporations gained entry into the Indian economy.
8. Thus, we have public sector units, private sector enterprises, and multinational Coexisting in the Indian economy.