Though public sector is very essential for industries, many public sector undertaking incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector undertakings in the light of this fact.


Though many Public sector undertakings (psu) face huge losses and a drain to the country’s resources but they are very useful because of the following reasons:

  1. They create a strong industrial base. 

  2. They help in the development of backward areas.  

  3. They seek to develop infrastructure. 

  4. They provide employment. 

  5. They promote import substitution. 

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