What Is a Private Sector?

The private sector, the dominant economic component of the Indian economy. India's modern private capitalist industry has developed rapidly. It has been in existence for nearly 200 years since the first cotton spinning mill was established in Kolkata in 1818. By the beginning of the 20th century, there were 300 factories of various types. After independence, the government encouraged the private sector to develop with the public sector. The public sector concentrated financial and material resources to develop infrastructure, creating conditions for the further development of the private sector. On March 31, 1951, there were 28,496 private companies (not limited to manufacturing) and paid-in capital was Rs. 749 crore; by March 31, 1989, it had increased to 176,104 and paid-in capital increased. To Rs 5,135,400 crore. With the development of private capital, asset concentration has become more serious. In 1989, of the 1,664 private companies, 184 had assets of more than 1 billion rupees, accounting for 11.06% of the total number of companies, but 61.1% of the total assets of 85,32 billion rupees. ^[1]