Public sector industry
Topic: Secondary Activities: Manufacturing and Industrial Location · NCERT: Class 10, Ch 6 "Manufacturing Industries"; Class 12, Ch 5 "Secondary Activities"
Meaning
A public sector industry is owned and managed by the government. It is common in socialist countries, where the state controls most of the economy. In India, these firms are called public sector undertakings (PSUs). The government sets them up in key fields such as steel, heavy machinery and oil. These fields need huge investment or are important for the nation.
Example
The Steel Authority of India Limited (SAIL) is a PSU. It runs the Bhilai steel plant in Chhattisgarh. Other Indian PSUs are BHEL, which makes heavy electrical equipment, and ONGC, which explores for oil and gas.
Don't confuse with
- Joint sector industries: owned by the government and private investors together, not by the government alone.
- Mixed economy: a mixed economy is the whole system in which public sector and private sector firms exist side by side. A public sector industry is one part of it.
Related concepts
- Basic industries
- Consumer goods industries
- Private sector industries
- Joint sector industries
- Mixed economy