Question

“Activities in the private sector are guided by the motive to earn profits.” Examine the statement with examples.

Answer 1

Private sector activities prioritize profit generation, focusing on customer satisfaction and innovation. Companies like Tata and Infosys invest in quality services to stay competitive. However, this profit motive often leads to cost-cutting measures, such as outsourcing, which affects job security. Despite this, private enterprises significantly contribute to GDP and employment. For instance, IT companies in India provide high-paying jobs and export earnings, driving economic growth.