Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy's resources

d.eandeconomicreform
cbse

#1

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


#2

Although, the inefficiency and low productivity in Public Sector Undertakings (PSUs) may lead to wastage of the scarce resources and result in huge losses forming a constraint on economic resources of the country, they do have some advantages, which are as follows :
(i) The basic objective of the PSU was to provide goods and services that add to the welfare of the society without looking for profits. Public welfare facilities such as schools, hospitals, railways, elctricity, etc are necessary to be provided at resonable cost to the people of the country.