1.

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


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