Four Sectors of Economy.

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    Four Sectors of Economy

From the economic point of view, a mixed economy is divided into four sectors.

 

    1. Private Sector:
All the enterprises owned by the private individuals or group of individuals belong to the private sector. The private sector consists of companies/firms/enterprises in India which are not owned by the governmet.
                       2. Government Sector:
This sector includes public administration, police, defence, framing of laws and enforcing them. Apart from imposing taxes and spending money on various infrastructure and healthcare services and education etc., government also undertakes production activity through its companies like Coal India Ltd. (CIL), National Thermal Power Corporation (NTPC) etc.
 So, all the companies owned by the Central or State Governments i.e. Public Sector Undertakings (PSUs) also belong to the government sector.
               3. Household Sector:
A group of persons who normally live together and take food from a common kitchen constitutes a household. The size of a household is the total number of persons in the household. We should always remember that households consist of people. These people work in firms as workers and earn wages. They are the ones who work in the government departments and earn salaries and they are the owners of firms and earn profits. So, all the human beings (population)belong to household sector.
the 
        


  • 4. External Sector
This sector consists oftheexports and imports ofgoodsandservicesflowing into the country or out of the country.
 It also includesthe financial flows from and into the domestic country 



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