History CH 4 - Economic Development — Social Studies STD 9 — Question

(i) In a capitalist system, the means of production are privately owned. In a socialist economy, the means of production are owned by the State in the name of the society.
(ii) A mixed economy works both in the private and the public sector.
(iii) In order to achieve economic development of modem India, we gave preference to a model of ‘mixed economy’. We can see three parts in this kind of economy:

(a) Public Sector: The industries in this sector are completely under the control and management of the government. For example, production of defence equipment.

(b) Private Sector: The industries in this sector are owned by private industrialists. Of course, the government supervises and controls them too. For example, consumer goods.

(c) Joint Sector: In this sector, some industries are owned by private industrialists, while some are run under government management.

(iv) For mixed economy to run smoothly there is a need for co-ordination between the private sector and the public sector.
(v) This system aims at maximisation of production and popular participation on a large scale.
(vi) An effort has been made in this system to bring together the good aspects of both the capitalist and the socialist systems.
(vii) A mixed economy cannot ignore the profit motive, entrepreneurship, discipline, time bound planning, etc.