Organs of Public Sector:
i) Administration by a Government Department
ii) The Joint Sector Companies
iii) Public Corporation
i) Administration by a Government Department:
It is very common almost in all countries.
Example - Post and Telegraph, Railways, Port Trust, Irrigation Projects on India etc..
ii) The Joint Sector Companies:
It is governed by a company law and controlled by the Government as principal major share holders. .
Example :-
Indian Oil Petronas Pvt Ltd
Indian Oil Sky Tanking Limited
Ratnagiri Gas and Power Pvt., Limited
Indian Synthetic Rubber Limited
iii) Public Corporation :
This type of organization is the establishment of Public Corporation by the state of the Parliament of legislature.
Example :-
LIC, Air India, The Reserve Bank of India, Electricity Board.

i) When India achieved independence in 1947, it was primarily an agricultural country with a weak industrial base.
ii) There were only eighteen Indian Ordnance Factories in the country which the British had established.
iii) Building upon the Bombay Plan (1940), which noted the requirement of government intervention and regulation, the first Industrial Policy Resolution announced in 1948 laid down broad contours of the strategy of industrial development.
iv) Subsequently, the Planning Commission was formed by a cabinet resolution in March 1950 and the Industrial Act was enacted in 1951.
v) Prime Minister Jawaharlal Nehru promoted an economic policy based on import substitution industrialisation and advocated a mixed economic system.
vi) He believed that the establishment of basic and heavy industry was fundamental to the development and modernisation of the Indian economy.
vii) India's second five year plan (1956 - 60) and the Industrial Policy Resolution of 1956 emphasised the development of Public Sector enterprises.
viii) Nehru's vision was carried forward by Dr. V. Krishnamurthy.
ix) Indian Statistician Prof. P.C. Mahalanobis was instrumental to its formulation, which was subsequently termed the Friedman Mahalanobis model.

(i) Gross Domestic Product (GDP):
1. GDP supports in developing Socio-Economic Development.
2. The proportion of GDP by the Industrial Sector both private and public sector has been increased.
3. It results increasing government funds and increase public spending.
(ii) Life Expectancy:
According to 2011 Census of India, Life expectancy in India is 65.80 years for men and 68.33 years for women.
(iii) Literacy:
1. Educational skill plays a vital role in the Socio-Economic Development
2. Sarva Siksha Abhiyan (SSA) is government of India's flagship programme.
3. It is implemented for making free and compulsory Education to the children of 6 - 14 years with life skills.
4. The Government also introduced RMSA, Smart class, e-learning, free computer skill classes and eco-friendly studying environment. Digital India for increasing the level of quality in education.
(iv) Employment:
1. There is a clear shift in employment to secondary and tertiary sector from the Primary Sector
2. A growing number of people moved urban areas in search of employment.
3. It incrased urban population, hence government started the "Smart City' scheme which provides the city with many facilities like hospitals, schools, housing facilities and shopping centers.
4. To promote rural and backward area in terms of employment the government encourages private sectors to start an industry in backward areas.
(v) Provision of House, Clean Drinking Water and Sanitation:
1. Government sector provides housing facilities, clean drinking water facilities and sanitary facilities under clean India planning,
2. Providing clean water and sanitary facilities overcome diseases and malnutrition
3. By providing these facilities the Life Cycle of the people increases.

Public sector plays a major role in the development of any economy. It has following importance
(i) Public Sector and Capital Formation:
The role of public sector in collecting saving and investing them during the planning period has been very important.
(ii) Economic Development :
Economic development mainly depends upon industrial development,
Heavy & basic industries like iron & steel, shipping, mining, etc are required for supplying raw materials to small industries.
(iii) Balanced Regional Developmemt:
Public Sector undertakings have located their plants in backward parts of the country.
These areas lacked basic industrial and civic facilities like electricity, water supply township and manpower.
Public enterprises have developed these facilities thereby bringing about complete transformation in the socio-economic life of the people in these regions.
(iv) Employment Generation :
Public sector has created millions of jobs to tackle the unemployment problem in the country.
The number of persons employed during the year 2011 was 150 lakh.
(v) Export Promotion and Foreign Exchange Earnings:
Some public enterprises have done much to promote India's export.
The State Trading Corporation like other organisations have done very well in export promotion
(vi) Protection to sick Industries :
Public Sector, to prevent sick unit closing down, takes over their responsibility & prevent many people from getting unemployed not only this but it prevents unnecessary looking of capital, land, building, machinery, etc.
(vii) Import Substitution :
Some public sector enterprises were started specifically to produce goods which were formerly imported and thus to save foreign exchange.
The Oil and Natural Gas Commission like other organisations have saved foreign exchange by way of import substitution.

i) The main function of private sector is to create innovation and modernization.
ii) The profit motive drives them to invent, innovate new techniques of production and manage the productive activities in a scientific manner.
iii) Develop and maintain infrastructure and services.
iv) Promote and expand existing businesses.
v) Promote human capital development, to help vulnerable groups especially to participate in the labour market and encourage community development by promoting community business and co-operatives, local exchange system and informal credit etc.
vi) Promote small, micro and medium enterprises (SMME) through supply side measures and demand side measures and attract investment in the city.
vii) The most dominant sector of India, ie, agriculture and other allied activities like dairying, animal hunbandry, poultry etc. is totally under the control of the private sector.
viii) Thus private sector is playing an important role in managing the entire agricultural sector and thereby providing the entire food supply to the millions
ix) Producing various consumer goods organisation is also under the control of the private sector.