WHY DID INDIA OPT FOR MIXED ECONOMY
Dear student,
Regards
Mixed economy is an economic system where decisions are taken by both public as well as private sectors.
Initially India was a socialist economy where decisions were taken by the Government and all industries of utmost importance were reserved for public sector only. When the public sector became unable to provide sufficient services to economy and it lacked funds to finance heavy industries the Government needed to remove all licences etc to let the private sector enter these fields. To meet the heavy need of growth, industrialisation, private sectors were also given chance to enter these areas of core importance. Hence, India opted for Mixed economy.
Initially India was a socialist economy where decisions were taken by the Government and all industries of utmost importance were reserved for public sector only. When the public sector became unable to provide sufficient services to economy and it lacked funds to finance heavy industries the Government needed to remove all licences etc to let the private sector enter these fields. To meet the heavy need of growth, industrialisation, private sectors were also given chance to enter these areas of core importance. Hence, India opted for Mixed economy.
Regards