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.