Rapid industrialisation of a developing country like India depends upon the presence and creation of more basic infrastructure such as power, transportation, communication, irrigation, education, technical training etc. Most of the public sector enterprises were set-up in these industries. The growth of the public sector in the field of iron and steel, petroleum and natural gas, coal, heavy engineering, heavy electrical machinery etc has created a strongindustrial base. Some public enterprises like STC and MMTC have contributed to export products from India substantially.
To reduce regional disparities in industrial development, public sector industries have been set-up in undeveloped and underdeveloped regions of the country. All these activities contribute to the economic development of India.