India’s economy is of mixed type.

Question

India’s economy is of mixed type.

Answer 1

• Mixed economy is a combination of Capitalism and Socialism.
• India is said to be a Mixed economy because there is a co-existence of both public and the private sectors.
• The private sector undertakes production for the profit motive, whereas the state tries to achieve social welfare.
• India, therefore, tries to achieve a balance between maximum social welfare for its citizens on one hand and profit on the other. Therefore, India’s economy is of Mixed type.