The following booklet titled, “Limits Of Public Sector In India”, was published in 1979. In this text, the author, Prof. Gangadhar Gadgil calls attention to the ineffective and underperforming areas of the Public Sector enterprises, as well as the other blind spots in their workings. The author addresses the statements made by the Union Industry Minister, Mr. George Fernandes, claiming that the public sector should not be judged by their profits or productivity, but rather should be commended for creating social welfare, rescuing sick units and decentralising economic growth. And through his use of coherent arguments and factual data points out the high cost being incurred by the country due to the inefficiency of the public sector and concentration of economic power in their hands. This text is based on a public lecture delivered in Bombay on March 20, 1979, under the auspices of the Forum of Free Enterprise.