Sectors with a Need for Public Investment
- Defense: The defense sector is the only sector in which investments are made by the government only, any private investor can invest in this sector but not directly. Any individual investor can invest in the defense sector in India by providing any kind of service with the permission of the GOI. The public investment in the defense sector is been increased several times but, still, there is a need for more public investment in this sector, as itâs a matter of national security.
- Education: Public education in India needs a huge investment as its present condition is not so well, even after many educational reforms. Public investment in education is a long-term investment, that brings fruitful results for the nation in the future. India contributes only 3% of its GDP to its education sector, and itâs been constant for more than 10 years, thus there is a need for more public investment in this sector.
- Service: The service sector is the most highly contributing sector to the GDP of India and the GOI invests a huge sum of money in this sector. But in recent years the unemployment rate in India increased from 5.44% in 2014 to 7.8% in June 2022. Thus to reduce the unemployment rate and boost the Indian economy, public investment is quite important.
Importance of Public Investment for Indiaâs Economic Growth
If you take a closer look at the economic growth of any nation, youâll find that it is mainly driven by the investments made in development works. However making huge investments in any economy is as not easy as it sounds, as huge investment canât be done by a single person, it usually involves a group of people (investors). However still any private organization of an individual canât invest much, thus in such a case, public investment becomes quite important. The public investment not only benefits the netizens by providing them better services at a cheaper rate but also boosts the economic growth of a nation.
For the financial year 2022-23, the Government of India has decided to increase the share of public investment by 35%.
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