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The objective was to achieve efficiency along with the social objective of growth with equitable distribution by setting some of the “core” economic activity in the Public Sector. Public sector was to take the lead in investing in utility or infrastructure sector, which was otherwise an unattractive option for private companies in a resource-scarce developing economy. Similar reasons also guided investment in the capital-goods industries and other segments of the economy. The Public Sector was also intended to be a model employer whose employment and wage policies were to have a moderating influence on the corresponding policies in the private sector...
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