The 21st-century private sector has now been coded as the engine for developmental growth. TheService sector is an aid for the social-economic growth and development of a country. It is today thelargest and fastest growing sector globally employing more people and contributing a large share tothe output than any other sector. At the dawn of India’s independence, the private sector started toassume an increasing role and responsibility in rendering services. After 1991, with theliberalisation of economic policies, India has been able to achieve higher services and betterinvestment from private sector and the entire community and personal services like health,education, job creation, communication, transport etc contributed nearly 11.1% of GDP in 1994-95with greater share of services from the private sector than the public sector. There are many reasons for the efficiency of services provided by the private sector over thepublic.

Private sector organisations work in competition between individuals and ideas. Theirmotives are concentrated primarily in profit making. They market their goods and render theirservices in order to attract customers. These organisations are free from both legal and politicalconstraints unlike the public sector. They are free to manage and are capable to take risks. Privatesector organisations are driven by distinct goals and responsibilities to their clients.

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They are freefrom financial constraints and are flexible in making decisions according to the situation. Thoughthe motives of profit-oriented private sector differ from that of the welfare motive public sector, it iscrystal clear that the services rendered by the private sector are better than those of the public sector.The key dimensions of Indian economy i.e. health, education and job creation also have a greatercontribution to services from the private sector.

Health: India trains more doctors, provides the largest number of emigrant doctors, andtertiary health care system than almost any other country. It is evident that more than 70% of thehospitals in India are run by the private sector. In recent times, the private sector has been playing amajor role in medical education, medical technology and diagnostics, manufacture and sale ofpharmaceuticals, hospital construction and provision of medical services. Though the cost of theprivate healthcare system is about 4 times greater than that of the public healthcare, 72% ofresidents in rural areas and 79% of residents in urban areas are still using private services becauseof their better quality services. Private healthcare in India has quick access to treatment, betterinstitutional deliveries and provide intricate specialist services than government health system.Many non-residents from the Middle East, Africa, Pakistan, and Bangladesh are flying to India for aliver transplant or complex paediatric cardiac surgery – procedures that are not done in their homecountries.

Others from the United Kingdom, Europe, and North America are opting for Indianprivate hospitals for efficient, quick and cheap orthopaedic procedures or coronary bypasses.Despite high sophisticated medical education, training and services from the private sector, there aremany bottlenecks in rendering health care to people of India. A large section of the populationdoesn’t have an affordable access to good quality healthcare. Firstly, though profit-motive privatesector provides better services, many of them are indulged in malpractices by selling substandardand even counterfeit medicines, receiving commissions for referrals, prescribing unnecessary drugsand tests, needless hospital admissions and cases of manipulating the length of stay are alsodetected. Secondly, it is because of the loopholes in the services of the public sector. At present,India is one of the fastest growing economies in the world. It spends only 1.

3% of GDP on publichealth which is portrayed the lowest among the BRICS nations. The main reason for this is a highlyinadequate spending on infrastructure and an acute scarcity of trained manpower. There is an urgent need to revamp the health system design and make it transparent andaccountable to people at reasonable cost. It is also essential to regulate the private health system.The first design priority must be to increase public expenditure on health with the active participation of state governments. An incursion of funds to meet the various technological,infrastructural and trained personnel deficiencies is urgently needed. The majority of the populationin India lives in the rural areas and there is a dire need to strengthen rural public health care systemsimmediately.

Countries like Japan and China saw a rapid explosive growth since the second decadeof the 20th century because of higher investment in health and education. In the second designprinciple, the government can either work on taxation levels to fund health services or by providingmandatory health insurance to people at large. Various countries have worked on different healthsystem models. Britain’s National Health service is an example of a largely tax-financed healthsystem while Germany’s sickness fund is largely reliant on mandatory health insurance, andTaiwan’s medical smart card are hugely successful models.

The third most crucial design principleis that the government should play an active role in designing and supervising the entire healthsystem, instead of focusing only on the management of a health system owned by itself. Thegovernment has to provide incentives to insurance for health. Apart from this, the private sector alsohas an equal role in developing health system. Despite the varied motives of the private sector fromthe public sector, there is a huge responsibility in making private services genuine to people.

Abetter solution might be to impose greater social accountability on private providers, making acertain proportion of private services available to the poor. This can be made efficient through thePPP model. Education: India has more than 1.5 million schools with about 250 million students enrolledaccounting to one of the largest numbers of enrolments in the world. The most striking feature is therole of the private sector, which operates 25% of the 1.5 million schools but accounts for more than50% of the total enrolments. Though Government of India has been increasing provisions ofelementary education through RTE, Sarva Sikhsha Abhiyan, more than quarter enrolments in ruralIndia are in private schools.

This is primarily because of its better services. Private schools havebetter infrastructure and most of them have their classrooms integrated with White board, projectorsthat act as audio and video teaching aids which are essential for the physical and mentaldevelopment of the child. They accord for more trained staff as per the contemporary needs ineducation. Private schools use different hiring standards which have strict guidelines for specialeducation teachers. Recent developments of private institutes is their approach towardspsychological development of the children.

Many incentives like providing counselling for a rangeof issues affecting children and adolescents, conducting assessments in learning, social, emotionaland behavioural domains and are providing assessment for overall development. Private schoolscover the entire curriculum and offer extra-curricular activities like science fairs, general knowledgesessions, sports, music and drama for holistic development. Besides “chalk and talk” methodology,private educational institutes are using ICT for effective learning support, self-learning,instructional teaching, and assessment services. With the increasing emphasis on communicationskills and personality development assessment for selection into various occupations, thecurriculum followed by the private sector is more ahead than that of the government institutions.According to NCAER report 65% of private school students are able to meet class tow-levelreading criteria when compared to 45% for government school students.

Most of the private schoolshave smaller class sizes. One of the key points of private institutes is individual attention. On theother hand, public schools are characterised by larger class sizes minimising individual care andattention. Private schools maintain better hygiene, sanitation and environment than governmentschools which could safeguard the health of the students. Most of the government schools in Indialack basic requirements like toilets and drinking water. In this case, if a student wants to go towashroom he/she has to walk back home or take to another means.

The channel cited is one of themajor reasons for high drop-out rate of girl students. Many government schools have not beenrenovated since a long time. Most of the government schools in rural areas are not proper schools but confined to one room. Private schools are also providing certain accommodations like extratime on tests and assistive technology which is a supportive aid for students developement. PranabMukherjee, former President of India praised the role of private sectarian education and economicgrowth of the country. Inspite of the fact that the private sector provides a greater share of educationservices, it does not eliminate the demand for the government to play a stewardship role to ensurequality education. Job creation: Private sector is contributing lions share in job creation in India.

It is enablingjobs for young people on a sustainable basis. According to World Bank, 9 of every 10 new jobs arecreated by the private sector. According to 2001-02 statistics, as far as employment is concerned,the share of the private sector was 51.

2% against 44.3% of the public sector. The private sector iscreating more jobs through IT which has led to the massive employment generation in India. ITsector creates employment directly to 2.8 million and indirectly to 8.9 million people. NASSCOMportrays the Indian IT workforce will touch 30 million by 2020.

Nitin Gadkari (minister for road,transport and highways) says that driverless cars would lead to loss of employment and that thecountry has a shortage of 2.2 million drivers so these driving skills could generate employment. Buttechnology has created more jobs according to 140 years of data. This new inclusion of jobs wouldcreate more jobs for people at large than destroy it. Apart from this, the private sector is alsoproviding jobs in the telecommunication sector to a large section of the population. With theemergence of electronic media, the telecom industry has become one of the fast-growing sectorswith wide employment opportunities.

India, trying to create the biggest digital market in the world,a cashless society. For this private banks are increasing setting open employment opportunities.Private sector with global transportation technology has been an emerging sector in the recenttimes. Likely, Uber and its Indian counterpart Ola have created a million jobs as now in India wehave 650 million mobile phones, which allowed people to get service on demand. E-commercebusiness giants in India like Amazon and Flipkart are providing employment to more lakhs of thepopulation every year. In recent times, India has made a niche for itself in the outsourcing world.India renewed for its technical talent. It is producing more English-speaking IT graduates everyyear and is a destination for many jobs from low-end work like data entering into high-end researchengineering.

USA, UK, Australia, have a major share of job outsourcing in India. This is not onlyproviding employment but also India is reaching global markets and improving its economic status.Thus, technology is a huge job multiplier. Thus, the private sector made a striking move in contributing a herculean amount to the threemain economic dimensions i.e health, education and job creation.

It is also marking its boundary ofbetter services in various fields like communication, transport, insurance, social and communityservices. It stood as a boon to the Indian economy and its people directly or indirectly. The entry ofprivate sector post Independence laid a basis for a realistic recognition of the needs and interests ofthe population.

It directly impacted the country and life of people in many ways. It increased thequality of life, improved social life of the middle-class Indians, major effort in increasing innovativetechniques to meet the varied ends, effected increase in research and development, higher educationfacilities, better health outcomes, etc. Despite better outcomes of services from the private sector, itis not free from stains. There are loopholes in corruption, malpractices in health and an over-ridingcost for certain services. These slight cracks can be filled with gold through the PPP model whichwould regulate the services of the private sector and at the same time the collaboration wouldprovide better services. In spite of limitations, private sector undoubtedly has an upper hand inrendering best services to the people at large.

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