GENERAL KNOWLEDGE

Detailed explanation-1: -Mixed Economy economic system has been followed by India.

Detailed explanation-2: -India allows market forces to decide the price and also in some areas government interferes like in necessary goods and decides the prices to protect the interest of poor people. That’s why, India’s economy is called a mixed economy.

Detailed explanation-3: -What Type of Economy is India? India has a mixed economy; therefore, public, as well as private entities, co-exist. This is as a result of adapting the industrial policies in 1948 and later in 1956.

Detailed explanation-4: -A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.