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CBSE Class 10 Economics Question 17 of 27

Sectors of the Indian Economy — Question 21

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Question 18

Using examples from your area compare and contrast that activities and functions of private and public sectors.

Answer

Public Sector: Public sector organizations are owned, controlled, and managed by the government or other state-run bodies. Examples include government agencies, state-owned enterprises, and local government authorities.

  • The primary motive of public sector organizations is to engage in activities that serve the general public.
  • Funding for public sector undertakings comes from government.
  • Public sector units provide benefits like job security, housing facilities, allowances, and retirement benefits etc.

Private Sector: Private sector enterprises are owned, controlled, and managed by individuals, groups, or business entities. They aim to earn profits from their business operations.

  • Private sector units raise capital through owners, loans, shares, and debentures.
  • Private sector units offer benefits like higher salaries, promotion opportunities, competitive environments, and incentives.
  • Examples: ICICI Bank, HDFC Bank, and Kotak Mahindra Bank are private sector banks.