Tatsat Chronicle Magazine

Without trust between the government and the private sector, India cannot prosper

September 22, 2021
private sector

The Indian economy’s private sector has seen tremendous growth in terms of investment and its percentage of GDP over the last few years

Transportation, financial services, and other vital areas of the Indian economy’s private sector have exceeded the governmental sector. The Indian government is considering taking concrete steps to alleviate poverty by increasing job opportunities in the private sector of the Indian economy, increasing the number of financial institutions in the private sector, and providing loans for the purchase of houses, equipment, education, and infrastructural development.

The Indian economy’s private sector has recently demonstrated a desire to serve society by promoting women’s empowerment, assisting individuals afflicted by natural disasters, and providing assistance to street children, among other things. A variety of agencies are assisting the Indian government in identifying the areas that are preventing the private sector of the Indian economy from entering the arena of infrastructure development, such as regulatory rules and legal procedures.

The most interesting fact about the Indian economy’s private sector is that, despite the fact that it is developing at a slower rate than the public sector, private sector investment has increased significantly in recent years, from around 56 percent in the first quarter of 1990 to nearly 71 percent in the second quarter, representing a 15 percent increase. Certain initiatives done by the Indian government, such as industrial delicensing and earlier devaluation, are serving as stepping stones for the private sector’s continued growth.

The private sector of the Indian economy is also harmed by the large number of permits required and the long time it takes to process documents to start a business. However, the central government has decided to repeal the MRTP Act and establish a Competition Commission of India to bring the public and private sectors together. The Indian government wants the private sector to participate in infrastructural development, which includes specific areas such as power, highway construction, and so on.