To define the private sector, the companies which are run by individuals and for profit, simply. For-profit business. In most free-market economies, the private sector is the sector where most jobs are held.
Public sector :- The public sector is usually composed of organizations that are owned and managed by the Government. This includes, federal, provincial, state, or municipal governments, depending on where you live. Privacy legislation usually calls organizations in the public sector a public body or a public authority. Educational bodies, health care bodies, police and prison services, and local and central government bodies, and other departments includes the public sector.
Private sector :- The private sector is usually composed of organizations that are privately owned and not part of the government. These usually includes corporations ( both profit and non-profit ), partnerships and charities. An easier way to think of the private sector is by thinking organizations that are not owned or operated by the Government. Like, retail stores, local businesses, IT sectors, factories, credit unions, etc. The private sector will differ from the public sector by its privacy rights.
Public sector unions has its importance in the Indian economy. They account for over 22% of the country’s GDP, around 6% of the total employment in the organized sector and over 20% of direct and indirect tax collections. The public sector serves the critical functions of the nation. Profitable public sectors are running in the country. Over the years, Public sector operations have extended to a wide range of activities including manufacturing, engineering, steel, heavy machinery, machine tools, fertilizers, drugs, textiles, pharmaceuticals and services such as telecommunication, trading and tourism and consultancy services too.
Indian government, has made plans to grow the private sector companies , to create more job opportunities in the Indian economy. There were lot of private sector finance institutions, to provide loans for the needs of the houses, equipments, education and for infrastructural development also. To say in practical words, the public sector works for the basic needs of the people, whereas the private sector works on the other needs of the people.
The investment in the private sector increased from 56% to 71% in the ten years. This and all give a success stone to the development of the nation. The small and medium scale private sector companies are suffer from the lack of finances. Some private sector don’t have proper regulatory structure to guide them and grow.
The involvement of the foreign markets, are also plays a vital role in the private sector improvement. Because of the private sector, the standard of living of the people has been gone to another level. Yes, the private sector institutions, are responsible for the change in the cultural deployment.
The private sector institutions, have given lot of job opportunities to the women. It has played a very important role in the women empowerment of the Nation.
Both the public sector and the private sector institutions, build our nation towards the height of developed nation. That is sure !!!