Joint sector industries
Topic: Secondary Activities: Manufacturing and Industrial Location · NCERT: Class 12, Ch 5 "Secondary Activities"
Meaning
Joint sector industries are classified by ownership. They are set up and run together by the government (public sector) and private companies. They can also be run by joint-stock companies, which are firms owned by many shareholders. This model brings together government support and private money, skill and technology.
Example
Maruti Udyog began in India as a joint venture between the Government of India and Suzuki of Japan. It made small cars at Gurugram in Haryana. The government sold its last stake in 2007, so the company is no longer in the joint sector.
Don't confuse with
- Public sector industry: owned and managed by the government alone, for example SAIL.
- Mixed economy: this describes a whole economy where public and private firms exist side by side. A joint sector firm is a single company owned by both together.
Related concepts
- Basic industries
- Consumer goods industries
- Public sector industry
- Private sector industries
- Mixed economy