Social Science — CBSE Class 10 board question

Activities in the private sector are guided by the motive to earn profits. This means private individuals and companies undertake economic activities primarily to maximise their earnings, not for social welfare.

Examples and Examination:

1. Private companies like TISCO and Reliance Industries Limited (RIL) operate to earn profits. Consumers must pay money to avail their services or products.

1. Private sector avoids low-profit activities — it will not construct roads, bridges, dams, or railways at reasonable cost, as these require huge investment with uncertain returns.

1. High pricing tendency — even if the private sector provides essential services, it charges high rates, making them unaffordable for the poor.

1. Government support needed — private electricity producers may sell at high costs, forcing small industries to shut down. Government intervenes to supply electricity at affordable rates.

Thus, the profit motive restricts private sector involvement in socially necessary but less profitable activities.

Source: Sectors of the Indian Economy, Chapter 2 — Public and Private Sectors

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• Examiners expect a clear statement of the profit motive, then examples from the textbook (TISCO, RIL, electricity, roads/bridges).
• Key contrast: private sector = profit motive; public sector = social welfare. Bring this out explicitly.
• Do not just define private sector — the question says "examine," so you must explain implications of the profit motive with examples.
• Always use textbook examples (TISCO, RIL) to stay accurate; avoid vague generalisations.