With reference to the "Private Sector", consider the following statements: 1. Reliance Industries Limited is a public sector enterprise. 2. Delivery of services is in the hands of private individuals or companies. 3. It operates primarily for profit. Which of the statements given above is/are correct?

The correct option is 2 and 3 only. Explanation In an economy, sectors are classified based on ownership into the public sector and the private sector. The distinction lies in who owns the assets and who is responsible for the delivery of services. Statement-wise Analysis: - Statement 1 is Incorrect. Reliance Industries Limited (RIL) is a private limited company owned by private promoters and shareholders. It is not a Public Sector Enterprise (PSE). Public Sector Enterprises are companies owned and managed by the government (e.g., SAIL, ONGC). - Statement 2 is Correct. The defining characteristic of the private sector is that the ownership of assets and the delivery of services are in the hands of private individuals or private companies, rather than the state. - Statement 3 is Correct. The primary driving force behind the private sector is the motive of profit maximization. In contrast, the public sector is primarily guided by the objective of social welfare and providing essential services to the public. Key Takeaway: The private sector is defined by private ownership of assets and a profit motive, whereas the public sector is characterized by government ownership and a social welfare objective.

NCERT Class 10 Economics — Chapter 2: Sectors of the Indian Economy

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With reference to the "Private Sector", consider the following statements:

Reliance Industries Limited is a public sector enterprise.
Delivery of services is in the hands of private individuals or companies.
It operates primarily for profit.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A2 and 3 only
B1 and 2 only
C2 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is 2 and 3 only.

Explanation

In an economy, sectors are classified based on ownership into the public sector and the private sector. The distinction lies in who owns the assets and who is responsible for the delivery of services.

Statement-wise Analysis:

Statement 1 is Incorrect. Reliance Industries Limited (RIL) is a private limited company owned by private promoters and shareholders. It is not a Public Sector Enterprise (PSE). Public Sector Enterprises are companies owned and managed by the government (e.g., SAIL, ONGC).
Statement 2 is Correct. The defining characteristic of the private sector is that the ownership of assets and the delivery of services are in the hands of private individuals or private companies, rather than the state.
Statement 3 is Correct. The primary driving force behind the private sector is the motive of profit maximization. In contrast, the public sector is primarily guided by the objective of social welfare and providing essential services to the public.

Key Takeaway:

The private sector is defined by private ownership of assets and a profit motive, whereas the public sector is characterized by government ownership and a social welfare objective.

Your note

More from Chapter 2: Sectors of the Indian Economy

Consider the following statements regarding the "Service Sector" growth: 1. New services based on information and communication technology have become important. 2. The entire service sector is growing rapidly, providing high incomes to all workers. 3. All workers in the service sector earn high incomes and enjoy job security. Which of the statements given above is/are correct?

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Consider the following statements regarding the "GDP" of India: 1. It shows how big the economy is. 2. It is the sum of the value of intermediate goods produced in the three sectors. 3. It excludes the value of goods and services produced by Indians outside the country. Which of the statements given above is/are correct?

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Consider the following statements regarding "Disguised Unemployment": 1. It happens when people are visibly unemployed. 2. It is common in the agricultural sector. 3. Removing a few workers from the sector does not affect total production. Which of the statements given above is/are correct?

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Consider the following statements regarding the "Unorganised Sector" workers in urban areas: 1. Workers in small-scale industry are always covered under the organised sector. 2. They include casual workers in construction, trade, and transport. 3. Street vendors are considered part of the formal service sector. Which of the statements given above is/are correct?

easy

Consider the following statements regarding the "Primary Sector": 1. It forms the base for all other products. 2. It is unrelated to agriculture and allied activities. 3. It includes activities like mining and forestry. Which of the statements given above is/are correct?

easy

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The correct option is 2 and 3 only.

Explanation

Statement-wise Analysis:

Statement 1 is Incorrect. Reliance Industries Limited (RIL) is a private limited company owned by private promoters and shareholders. It is not a Public Sector Enterprise (PSE). Public Sector Enterprises are companies owned and managed by the government (e.g., SAIL, ONGC).
Statement 2 is Correct. The defining characteristic of the private sector is that the ownership of assets and the delivery of services are in the hands of private individuals or private companies, rather than the state.
Statement 3 is Correct. The primary driving force behind the private sector is the motive of profit maximization. In contrast, the public sector is primarily guided by the objective of social welfare and providing essential services to the public.

Key Takeaway:

The private sector is defined by private ownership of assets and a profit motive, whereas the public sector is characterized by government ownership and a social welfare objective.