Indian Economy 1950-1990 — Economics STD 12 Humanities & Commerce — Question

Mixed economy is an economic system in which economic decisions are taken by the Central Government authority, as well as, are left to free play of the market. It is the basic framework of planning in India. In this economy, the market will provide whatever goods and services it can produce economically and the government will provide essential goods and services which the market fails to provide.
The following features of Indian economy prove that mixed economy is the basic framework of planning in India:

1. In India, agriculture and most of the industrial and service sectors are in the private hands.
2. Market forces of demand and supply have free role in determining prices in various markets, i.e. goods having higher demand will be highly priced and vice-versa.
3. Over the period of time, many big business houses have come into being and have been growing, such as Reliance, Infosys, Bajaj, etc.
4. After Independence, the government recognised the need to provide infrastructure for the growth of the private sector. So, public sector was developed on a large scale.