Why did india opt for mixed …

Mixed economy is an economic system in which economic decisions are taken by the Central Government authority, as well as, are left to free play of the market. It is the basic framework of planning in India. In this economy, the market will provide whatever goods and services it can produce economically and the government will provide essential goods and services which the market fails to provide.

The following features of the Indian economy prove that a mixed economy is a basic framework of planning in India:

1. Agriculture and most of the industrial and service sectors are in the private hands in India.
2. Over the period of time, many big business houses have come into being and have been growing, such as Reliance, Infosys, Bajaj, etc.
3. Market forces of demand and supply have a free role in determining prices in various markets i.e., goods having higher demand will be highly priced and vice-versa.
4. The government recognised the need to provide infrastructure for the growth of the private sector after Independence. So, the public sector was developed on a large scale.