Joint Sector &

Cooperative Sector

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Meaning Joint Sector

Joint

sector industries are owned jointly by the

government and private individuals who have
contributed to the capital.
In joint sector, both public sector and private
sector join hands to establish new enterprise. It
combines merits of both public and private
sector. The concept of joint sector matches with
the concept of mixed economy.
As mixed economy is the combination of both
capitalism and socialism, joint sector is
combination of both public sector and private
sector.
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Features
In joint sector financial participation is 26 % from
the government, 25% from private enterprise and
49% from public and financial institutions.
In case of a foreign collaboration or participation
with domestic partner, the share of government
will be 25% ,Indian business concern 20%, foreign
investor 20% and public 35% in the paid up
capital.
No single party can hold more than 25% of the
shares without the sanction of central government.

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Merits of Joint Sector

Social

control over industries

Failures of Private and Public sector
Compromise and solution of both sector
Instrument of industrial growth and regional
development
Strategy of state sponsored industrialization
Removal of the contradictions involved in
the concept of mixed economy
Mobilization of financial, Technical and
managerial Resources
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Demerits of Joint Sector

Corruption
Quality of services
Evaluation
Wealth creation
Monopoly
Drawbacks
Limitations

of Public sector
of private sector.

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Cooperative Sector
It

refers to the sector which is

voluntary association of persons
owned and managed for their or
sometimes the communities benefit.
A cooperative is a legal entity with
several Corporate features, such as
limited liability, an unlimited life
span, an elected board of directors.
Members or Owners pay annual fees
to the cooperative and share profits.
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Definition
A

cooperative organization is an association of

persons, usually of limited means, who have
voluntarily joined to achieve a common economic and
through the formation of a democratically controlled
organization , making equitable contributions to the
capital required and accepting a fair share of risks and
benefits of the undertaking.
Co-operatives are autonomous associations formed
and democratically directed by people who come
together to meet common economic, social, and
cultural needs. Founded on the principle of
participatory governance, co-ops are governed by
those who use their services: their members.
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Features
Voluntary

association
Open membership
Legal entity
Equal voting right
Service Motive
Co-operation among Co-operatives
Concern for community

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Types of Cooperatives
Consumers

Cooperative Societies
Producers Cooperative Societies
Marketing Cooperative Societies
Housing Cooperative Societies
Credit Cooperative Societies
Cooperative Framing Societies

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Merits Of Cooperatives
Easy

Formation
Open membership
Democratic Control
Limited liability
Elimination of Middlemens profit
State Assistance
Stable Life

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Demerits of
Cooperatives
Limited

Capital
Problems in management
Lack of motivation
Lack of Cooperation
Dependence on government

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Example
Amul

(Anand Milk Union Limited),

formed in 1946, is a Dairy cooperative movement in India. Which
today is jointly owned by some 2.6
million milk producers in Gujarat ,
India.
Indian Coffee House
Adrash Co-operative Bank
Shri Mahila Griha Udyog Lijjat Papad
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 References
Business

Environment by Veera

karoli
Business Environment by Rosy Joshi
& Sangam kapoor

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Thank you

Ruby Sharma

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