Growth of Public Enterprises in India.
The following are some of the reasons which are responsible for the growth of public enterprises in India:
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- It secures balanced growth of industries in every region.
- It facilitates for the economic development of the country because the surplus of state enterprises are utilized for financing various schemes for economic development.
- It promotes greater public welfare because the basic objective of state enterprises is render service or assist in the national economy as a whole.
- There is greater economy in the working of public enterprises because of unified control and large scale operations.
- The state can fill up gaps in the industrial structure of the country through public enterprises.
- The consumers are benefited in many ways through the establishment of public enterprises.
- Public enterprises have a better deal with the labourers.
- These are essential for establishment of big, heavy and strategic industries.
- It reduces inequalities of income and wealth.