Explain how public sector contributes to the economic development of nation:
Answer»
Creation of infrastructure: Public sector promotes the economic development since it brings about creation and expansion of infrastructure and the infrastructure plays an important role in economic development.
Generates financial resources: Public Sector provides for various employment opportunities since major part of public sector depends on manpower and higher employment opportunities implies higher generation of financial resources for economic development.
Contributes to HDI: Public sector majorly contributes to the Human Development Index since health and education industries come under the purview of public sector.
Availability of goods: Public sector helps in availability of goods at moderate rates, which helps in maintaining financial security and thus helps in economic development.
Provides encouragement: It provides encouragement to small, medium and cottage production units. It also strives for the creation of welfare state