Why is government of india not closing all public enterprises???

Dear student,

The Government of India is not closing all public sector enterprises due to following reasons:
* If the government closes all public sector enterprises, then they will lose their main source of revenue.
* If all public sectors will get closed down, then the private sector will adopt monopolistic practices which will lead to high prices and low level of employment. 
* Private sectors are set up with main motive of earning profit, in aim of earning profits, private sectors will exploit consumers and society. It will create regional imbalances
* There are certain industries which are very vital for our economy like defence, railways, water, electricity, infrastructure, etc. government cannot give these industries in private hands.


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Because if they would close the public sector then how would the government earn money and secondly if piblic companies get closed then the private sector would be established fully and if it happens then the government wont get any way to earn money
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see leena, there r some areas were public sector has to be there. for eg - defence atomic energy and railways. as private co. are collaberate with public co. the govt. is earning revenue. as u know that the shares bought by private co. r in the ratio of 51:49. there public co. is earning some revenue
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sry leeann
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What are you looking for?