Explain the concept of the public sector and the private sector.

India is a mixed economy. It is the type of economy which has both the public sector and the private sector.

The private sector consists of those business enterprises which are owned by a single individual or a group of individuals. For example, sole proprietorship, partnership, Joint Hindu Family Business, cooperative and a company.

The public sector consists of those business enterprises which are owned and managed by the government. It can be either wholly owned by the government or wholly-owned by one or more State Governments, or partially by both the governments. It must be having a paid-up capital of at least 51%. For example, departmental undertakings, statutory corporations.