Growth of Private Sector

As of the figures of the last decade, India has had a remarkable growth in private sector investment. The liberal trade and investment policies and the country's infrastructure have provided the environment for higher investment and growth in private sector.

Recent Trends in Private Participation



Growth in Telecom Sector

As of the figures of 2001-06, there has been an incredible increase in the investment in the telecommunication sector in India and as a result there has been immense growth in the telecom industry. 64% of the investment in this sector in South Asia has been in this sector. Various private telecom companies as Airtel, Reliance Communications, Tata Indicom etc have been the major investors in this field. The subscriber base has increased as a result which is reflected in their figures:

  • Bharti Airtel -3,280,658
  • Reliance Communications 1,232,060
  • Tata Teleservices 1, 289, 17

Growth in Energy and Water Sectors

This sector also has attracted a large investment from the private industries. Figures as of 2001-06 registered 17% investment in the sector. However in the water sector there has not been any major investment due to political issues, weak authority etc. In India, the power distribution has been privatized in several cities as Delhi and states like Orissa. The western state of Maharashtra is also keen on having larger investment from the private sector in the power division.

Growth in Transport Sector

This sector has also become an important area of investment by the private enterprises. As of figures of the year 2006, there has been an investment of 34% alone in the transport sector. The driving force behind this success has been India's initiatives and policies encouraging partnerships of the private and the public sectors in transport.

Private Sector and Public Sector in India



As of the last decade, the growth and investment in the private sector has well surpassed the growth in the public sector. Figures suggest that the share of the private sector in the net sales of manufacturing and services industry augmented from 48.83% in 2001-01 to 68.55% in 2009-10. Subsequently the share of the public sector reached to 31.45% from a higher percentage of 51.17%.The shares of private sector in the net profit in the non-agricultural economy rose to 63.86% from 39.17%. The share of the public sector subsequently declined to 36.14% from 60.83%.

This increase in the private sector's share is largely due to the higher foreign direct investment over the last decade. Over the last decade or so, with the liberalisation of the economic policies, India has been able to achieve higher investment from the private sector. For instance due to modifications and changes in the economic policies the transport and telecommunication industry witnesses a higher percentage of growth and investment in the private sector.

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