Question

Which two models of modern development were there before India on the eve of independence? Which model did India decide to choose and why?

Answer 1

Answer:

There were two models of development in India at the time of independence:

1- The Liberal- Capitalist Model

2- Socialist Model

India did not completely opt for one model of development. It adopted a model that was a combination of both the models as it was more suitable for the people of India and for the economy of the country.

Answer 2

The two models of modern development India adopted on the eve of independence are  

a) Capitalist or Liberal Model   b) Socialist Model

India decided to take the core essence from both models to combine to form a ‘Mixed economy’ approach.

Explanation:

• In the ‘Mixed economy’ model the idea of governmental elements is combined with elements of the market in organizing the practice of production and consumption.
• This helps both sectors (capitalistic sector and socialistic sector) to practice together existing independently. Economic control is made to distribute equally.