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Advantages of Joint Sector
The concept of joint sector is very attractive and ideally suited to the country's mixed economy.


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It has the following merits:

1. The private enterprise has accumulated considerable amount of managerial, organisational and technological expertise but is lacking in sufficient financial resources. On the other hand, the public sector in spite of its vast financial resources has shown disappointing performance. Through the joint sector formula, the resources of the two sectors can be combines.

2. Joint sector enterprises would enjoy more operational autonomy and flexibility within the frame work of the socio-economic policies of the State.

3. Joint sector is a useful weapon to curb monopoly and concentration of economic power in the country. It is a via media between outright nationalisation and free enterprise. The idea of joint sector is appropriate to India's mixed economy wherein growth and social justice are to be aimed at simultaneously.

However, joint sector can succeed only when there is complete understanding, faith and co-operation between private and public sector partners. A suitable system of management for the joint sector must be evolved. The joint sector management should have freedom necessary to run the enterprises on business principles. At the same time public control must be maintained in the form of Government representatives on the board of directors. If properly managed, joint sector can be a viable alternative to both State capitalism and private capitalism.

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