There are various reasons of the government participating in business.

Question

22 Sep 2022

Answer :

Word Count : 292

1. Provision of Non-market Products and Indivisible Services

Certain products and services are necessary for the very existence of the society. They include nation’s defense and related services, price protection, flood control, protection of public monuments, buildings etc.

2. Provision of Basic Infrastructure

The provision of basic infrastructure like power, communication, port facilities, banking and other institutional facilities is sin qua non for the growth of the national economy. It involves a huge capital outlay.

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