Explain the difference between public and private sector of Indian economy with example.

(i) In the public sector the government owns most of the assets and provides all the services while in the private sector the ownership of assets and delivery of services is in the hands of private individuals and companies.

(ii) Railways, Post office are examples of public sector whereas companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited are examples of private sector.

(iii) The motive of the public sector is not just to earn profits whereas activities in the private sector are guided by the motive to earn profit.

(iv) Government raises money through taxes to meet expenses whereas private sector organizes its own funds.

(v) Public sector charges less for their services whereas private sector charges much more.