SSC GD 2026 PYQ — Question 37

Correct Answer:

They prioritize wider socio-economic developmental objectives

Explanation:

Public sector industries in India are primarily oriented toward achieving broader socio-economic developmental objectives, such as building basic infrastructure, reducing regional disparities, generating employment, preventing the concentration of economic power, and ensuring equitable growth, rather than focusing exclusively on profit maximization.

Key Points:

Public sector undertakings (PSUs) form the backbone of India's state-led industrialization strategy, particularly emphasized since the Second Five-Year Plan.

While modern public enterprises aim for operational efficiency and profitability, their foundational mandate includes social welfare and national development.

Unlike private enterprises driven solely by market-driven profits, public sector entities shoulder developmental responsibilities in core and strategic sectors.

Important Questions and Answers:

Question: Which Five-Year Plan marked a major thrust towards the development of public sector industries in India?

Answer: The Second Five-Year Plan (Mahalanobis Model).

Question: What is a primary distinction between public sector and private sector enterprises regarding their core goals?

Answer: Public sector enterprises prioritize socio-economic welfare and national growth, whereas private enterprises primarily focus on profit maximization.