A.1. Introduction of mixed economy
- Mixed Economy refers to a system that blends both market-driven and planned economic approaches. In such a model, the government plays a key role by delivering public goods, enforcing regulations, and ensuring redistribution of resources, while the private sector operates independently in designated sectors.
- In India, this approach was adopted post-independence as part of a broader strategy to drive modernization and economic development. The government initiated various efforts, including substantial investments in infrastructure, industrial growth, and education.
- Simultaneously, it introduced regulatory frameworks to safeguard consumer rights, labor welfare, and the environment, along with launching social welfare initiatives to combat poverty and reduce inequality.
- The mixed economy has played a significant role in India’s economic development and has helped to raise living standards for many people in the country.