Explain the concept of public sector and private sector.

Indian Economy consists of mixed economy. A mixed economy refers to an Economic system where both private and government enterprises co-exist. The economy is therefore classified into two sectors i.e., the private sector and public sector. The private sector consists of business enterprises owned by individuals or a group of individuals. The various forms of organisation are sole proprietorship, partnership, joint Hindu family, co-operative and company. The public sector consists of business enterprises owned and managed by the government. These organisations may either be partly or wholly owned by the Central or State Government with an equity stake of at least 51% with the government. They may also be a part of the ministry or might have come into existence by a Special Act of the Parliament. The government participates in the economic activities of the country through the public sector. Industrial policy resolutions announced by the government from time-to-time define the area of activities in which the private sector and public sector are allowed to operate.