DIFFERENT PROBLEMS

FACED BY THE PRIVATE

SECTOR

BY- Dipanway Bhabuk

SECTORS ON THE BASIS OF

OWNERSHIP

PRIVATE SECTOR- Reliance Industries Limited, Wipro Limited

PUBLIC SECTOR- Bharat Heavy Electricals Ltd., Airports Authority of

India

JOINT SECTOR- Malwa Cotton Spinning Mills LTD – Punjab, Gujarat

State Fertilizers

PROBLEMS FACED BY OUR

ECONOMY AS A WHOLE

INFLATION

POOR EDUCATIONAL STANDARDS

BALANCE OF PAYMENT DEFICIT

POOR INFRASTRUCTURE

INCREASE IN INEQUALITY OF INCOME

RIGID LABOUR LAWS

PROBLEMS FACED BY PRIVATE

SECTOR The small and medium scale companies in the private sector of Indian

economy suffer from lack of finances to welcome the idea of extending their business to other states or diversify their product range

The private sector of Indian economy also suffer from the absence of appropriate regulatory structure, to guide the private sector and this speaks for its unorganized framework. The unorganized framework of the private sector is interrupting the proper management of this sector resulting in the slowdown of its development

The most important problem was delays due to regulatory structure. There have been too many regulations imposed by the government on the private sector which often resulted in procedural delays. It is estimated that on an average it takes seven years from the conceptual stage to the production stage for any significant investment project to materialize in India

PROBLEMS FACED BY PRIVATE

SECTOR

The private sector had not been given a significant role in the

economic development. The government has entrusted the

basic and capital goods industries to the public sector and

made it the prime mover of economic development. As a

consequence, the private sector has to be satisfied with the

secondary role assigned to it

Another major problem was the growing industrial sickness

due to continuous losses, which resulted in the failure to

meet liabilities

THANK

YOU