Joint Sector refers to a business model where both the government and private enterprises collaborate to establish and operate a company. In this arrangement, ownership, management, and control are shared between public and private partners, typically with the government holding a minority or majority stake depending on the policy objectives. The goal of joint sector enterprises is to combine the efficiency and innovation of the private sector with the social responsibility and stability of the public sector.

These enterprises are often established in industries that require large-scale investments or have strategic importance for national development, such as steel, energy, infrastructure, and heavy engineering. By forming joint ventures, the government encourages private participation while retaining oversight to ensure alignment with public interest. This model also helps mobilize additional capital, technical expertise, and managerial efficiency from private entities, reducing the financial burden on the government.

In India, the concept of the joint sector gained prominence after the Industrial Policy Resolutions of 1956 and 1977, which aimed to balance socialist ideals with market-driven growth. Examples include entities like Cochin Refineries and Gujarat State Fertilizers, which were set up with joint participation from public and private partners. Over time, the role of joint sector enterprises has evolved to promote economic liberalization, attract foreign investment, and strengthen public-private partnerships (PPPs).

For investors, understanding the joint sector structure is essential, as it impacts corporate governance, decision-making, and profit distribution. Such collaborations contribute to industrial growth, employment generation, and sustainable development, while maintaining a balance between commercial interests and social welfare.