Question

Write a short note on Mixed Economy.

Answer 1

The economy in which some industries are owned by private industrialists and some are owned by the government is called a ‘mixed economy’. In this economy, the public and private sectors are run together e.g. India. In order to achieve economic development of modern India, we gave preference to a model of ‘mixed economy’. We can see three parts in this kind of economy:

1. Public Sector: The industries in this sector are completely under the control and management of the government. For example, production of defence equipment.
2. Private Sector: The industries in this sector are owned and operated by private industrialists. The government may regulate or supervise these industries through laws and policies.
3. Joint Sector: In this sector, some industries are owned by private industrialists, while some are run under government management.