Private investment model

  • When there exists certain shortfall of earnings in the public sector, Government invites private players to invest in some of its ventures
  • The private investment can be domestic or foreign in nature
  • A foreign direct investment (FDI) can improve the current infrastructure and generate employment in the process.
    • This model is one of the most sought after when it comes to external investment
  • Also, Private investment can generate more efficiency by creating more competition, realization of economies of scale and greater flexibility than is available to the public sector