Question

Explain the following statement with reason.

Independent India opted for mixed economy.

Answer 1

1. Our Prime Minister Pandit Nehru adopted the middle path rather than taking recourse to any extremes. A mixed economy also naturally tends to give priority to the national interest.
2. Long-term development is stressed with priority. Thus, India adopted the mixed economy model.
3. Priority was given in this policy to control the influence of heavy industries, industrial families and foreign industries and remove the imbalance in regional development.
4. In this economy, the public, private and joint sectors are working together.