GENERAL KNOWLEDGE

Detailed explanation-1: -In 1991, India began to loosen its economic restrictions and an increased level of liberalization led to growth in the country’s private sector. Today, India is considered a mixed economy: the private and public sectors co-exist and the country leverages international trade.

Detailed explanation-2: -Best Allocation of Resources: The resources are utilized in the best possible manner in the Mixed Economic System. The Central Government makes economic planning for optimum use of the resources. Thus shortage is avoided; productive efficiency increases and cyclical fluctuations are eliminated.

Detailed explanation-3: -2 At the outset, under the influence of the first Prime Minister of India – Jawaharlal Nehru – the nation adopted the model of mixed economy, non-alignment in foreign policy, and secularism in state building as its guiding principles.

Detailed explanation-4: -The mixed economic system is defined as an economic system that combines the elements of a market economy and the elements of a planned economy. It is a synthesis of socialism and capitalism, which contains both private enterprises and public enterprises. Most modern economies implement a mixed economic system.