Solution

Public sector was given a leading role due to following reasons:

1. As the development project for a country which has recently gained independence was tough, there was no foreign investment and no fund support, so the government had decided to take the initiative and as the projects were high risk along with long turnaround time, it was the public sector that had to step in to provide the framework of the future industries.

2. Indian economy was at a very nascent stage, the level of income was very less for majority of the people of nation. As a result of that, the demand was less and for such a market no one was willing to invest. Public sector was the only option by which the demands can be raised.