In 1991, India adopted the policy of liberalization, privatization and globalization. As a part of these policies due importance was given to the private sector. Also, foreign countries were allowed to enter into Indian market.

• Private sector expanded in all the areas in which they were allowed to operate. They invested huge capital in all the possible industries that too in all the parts of the country. As a result Indian economy grew drastically. Millions of people got employment and their living standards improved.
• Though public sector was given an opportunity due to weaknesses of public sector, they took Indian economy to great heights and left public sector far behind.
• Today, private sector boasts of a very high economic contribution in India’s growth. It holds a lion’s share in Indian economy. Although private sector can be considered as old as mankind but its role and importance has been evergrowing. Realizing the contribution and overall development that the private sector has made, the government makes continuous efforts to motivate and strengthen this sector.