Public Sector : Those industries come in the public sector, which are under the government system, such as Indian Railways, iron-steel industry, shipbuilding etc. Such goods or services are manufactured in the public sector which is welfare for the people. Their aim is not to earn personal interest or profit, but their aim is public benefit. The price of goods and services in this sector is determined by the government.

Private Sector : Private sector are those industries, which are owned by private individuals. In this come those industries which meet the needs of the general public, such as television, air condition, fridge etc. These activities are carried out with the aim of earning personal profit. The private sector is not bound to do welfare work. Even if he does any such work, he charges more for it like private schools charge more fees than government schools. In private sector industries, the prices of goods are determined by market forces.