Question

Two charcterics of indian economy on basis you can say indian economy is mixed economy

Answer 1

Mixed Economy is neither pure capitalism nor pure socialism but a mixture of the two system. In this system we find characteristics of both capitalism and socialism. Mixed economy is operated by both, private enterprise and public enterprise.

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That is private enterprise is not permitted to function freely and controlled through price mechanism. On the other side, the government intervenes to control and regulate private enterprise in several ways. It has been realised that a free functioning of private enterprise results in several types of problems.

According to J. W Grove, “One of the presuppositions of a mixed economy is that private firms are less free to control major decisions about production and consumption than they would be under capitalist- free enterprise, and that public industry is free from government restrains than it would be under centrally directed socialist enterprise.”