Question

The public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy's resources. What is the usefulness of public sector undertakings in light of this fact?

विकल्प

• Enhancing Nation's Welfare

• Long Gestation Projects

• Basic Framework

• All of the above

Answer 1

All of the above

Explanation:

Although, in PSUs, mismanagement and poor planning can result in Usallocation and, As a result, there is a waste of scarce resources. PSUs, on the other hand, have certain good aspects. advantageous and features.

1. Enhancing Nation's Welfare:
   The primary goal of the PSU was to provide commodities and services that would benefit the entire country. For instance, schools, hospitals, and power. These services not only improve the well-being of the country's citizens but also improve the country's economic growth and development prospects.
2. Long Gestation Projects:
   Private sector investment in large-scale infrastructures such as basic industries and power, trains, and roads was neither practicable or economically viable. This is due to the fact that major initiatives require a large initial expenditure and a long gestation time. As a result, PSU is the best option for investing in these projects.
3. Basic Framework:
   In the early five-year plans, a key philosophy was that the public sector should establish the basic framework for industrialization, which would attract the private sector to participate in the latter stages of industrialisation.