Give reason :Independent India opted for mixed economy.

1.	Give reason :Independent India opted for mixed economy.
Answer» (i) Our Prime Minister Pandit Nehru adopted the middle path rather than taking recourse to any extremes. Some countries had adopted Capitalism, while some had adopted Socialism. Each type of economy had its own advantages. (ii) 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. (iii) A mixed economy works both in the private and the public sector. In order to achieve economic development of modem India, we gave preference to a model of ‘mixed economy’.

Answer»

(i) Our Prime Minister Pandit Nehru adopted the middle path rather than taking recourse to any extremes. Some countries had adopted Capitalism, while some had adopted Socialism. Each type of economy had its own advantages.

(ii) 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.

(iii) A mixed economy works both in the private and the public sector. In order to achieve economic development of modem India, we gave preference to a model of ‘mixed economy’.

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