Business Environment

11

MIXED ECONOMY

In this chapter, we study the basic details of a mixed economy, its characteristics, merits and demerits with particular reference to the Indian economy. After reading this chapter, you will be able to understand the framework, the policy perspectives and the extent to which the mixed economy system has served the interests of the economy and the people of this country.

When India attained independence, our political leaders had to arrive at a consensus on the kind of economic system to be adopted to achieve rapid economic growth and reduce the disparity in the income of the rich and the poor. The per capita income of an Indian then was abysmally low at less than USD 5 while there was tremendous inequality of income and wealth. ...