1. Development of infrastructure:

It is the responsibility of the Government to provide infrastructural facilities to the core sector which requires huge capital investment, complex and upgraded technology etc.

2. Regional balance: 

The government is responsible for developing all regions and states in a balanced way and removing regional disparities.

3. Economies of scale: 

Public sector enterprises are large in size and are, able to avail the advantages of large scale operations.

4. Check over concentration of economic power: 

The development of public enterprises prevents concentration of economic power and wealth in the hands of private sector.

5. Employment opportunities: 

Public sector enterprises helps to generate a large number of employment opportunities.

6. Import substitution: 

It is also necessary for the economic progress of the country that industries which can decrease imports and increase exports are only promoted. Public enterprises also ensure promotion of such industries.