Public Enterprises in India and their main Contribution

We know that Public Enterprises are established owned and controlled by Union Government or State Government or any Territorial government.There are many contribution of Public Enterprises for the development of India.These contributions are as below-

1.Capital Formation-The Public Enterprises play a very important role to formulate of capital.In the period of First five year plan they formulate more than 50 percent of total investment.

2.Employment generation-It is the second contribution of Public Enterprises for the development of India.They generate many thousands job every year.There are two thirds of total employment of organised sectors generated by Public Sectors.

3.Regional development-There are a number of regions like North India,Eastern India that do not possess much land,raw material,water,finance so Private Enterprises do not want to established their business in these region.Pubic Enterprises are established all these regions and make regional development of country.

4.To provide taxes-There are many type of Taxes Public Enterprises provide concern government like Corporate tax,GST,wealth tex etcThey provide million rupees every year that is used by government to develop basic infrastructue.

5.To earn Foreign currency-There are many public Enterprises that produce world class product and service and export to foreign countries.In this way they earn billion rupees foreign currency.

6.To save national currency-India is a developing country so they purchase many products,Equipments,Tools,Machines from foreign countries and expend billion ruoees.Public Enterprises produce all these things and save national currency.

7.Research and Development-Research and Development is also an important sector of economy.It consumes heavy amount of money and give profit is not fix so Private Enterprises do not want to operate business in these sectors.Public Enterprises work in these sectors and play an important role for the development of India.

8.To promote Export-There are many public Enterprises that produce world class product at minimum price so its demand is maximum in world' market.Public Enterprises sell all these products or service to world's market and promote export of India.

9.Produce capital Goods- We know that India get freedom in 1947.In this time India is undeveloping country so there is maximum scarcity of Capital Goods.Public Enterprises produce all these Capital Goods and make India developing country.

10.Self Reliant-Every undevelop and developing country wants to become a Self Reliants country.India also wants to become Self Reliant country.Public Enterprises performs many functions that help India to become Self Reliant country.

So we can say that Public Enterprises has been performing their function for more than 70 years to make India a develop country.Its contributions is praise worthy.