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How are the three sectors of the economy different from each other? Explain.
Answer:
Answer to be written in exam
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BASIS |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
Ownership of Assets |
Most of the assets of a public sector enterprise are owned by the government. |
Assets of a private sector enterprise are owned by individuals or a group of individuals. |
|
Service Provider |
Government is solely responsible for providing services in the public sector. |
The responsibility of provision of services falls on the indviduals or private owners. |
|
Funding |
The government raises money through various sources such as taxes, international loans etc. |
The owners of a private firms put in their own money and the money they raise by providing services. |
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Motive |
The motive of a public sector firm is to provide services to the public to help them. |
The motive of a private sector firm is to earn profits and make the owners rich. |
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Examples |
Railways (IRCTC, DMRC), Reserve Bank of India |
SpaceX, TATA steel |
