Question
Which demerits are associated with private sector?

Answer

  1. The sole object of the private sector is to earn profits and not welfare of the people.
  2. There are several services needed by the people which is beyond the capacity of the private sector, e.g., irrigation through dams, construction of roads, bridges, railways, etc. Private sector will charge high for the use of these services.
  3. Also it is very difficult for the private sector to collect money from thousands of people who use these services.
  4. Sometimes private sector ignores regional balanced development, equal distribution of income and development of basic industries.

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