Question

Indian economy is a ______.

Options

• socialist economy

• market economy

• traditional economy

• mixed economy

Answer 1

Indian economy is a mixed economy.

Explanation:

Indian economy has the coexistence of both public and private sectors, with the government regulating private industries through policies. It combines features of both capitalist and socialist systems, where both planning and market mechanisms operate simultaneously. The industrial policies of 1948 and 1956 formalized this model for India, ensuring some key industries remain public while allowing significant private sector activity.