Mixed economy

A mixed economy incorporates the merits of both socialism and capitalism while eliminating the
pitfalls found in both of them. In such an economy, both public and private sectors coexist.
Features of the Indian mixed economy
1. Co-existence of private and public sectors (225 public sector companies own and manage
by central government)
2. Nationalization of basic industries
3. Reduction of inequalities of income
4. Provision of social welfare measures
5. Promotion of economic development through planned efforts
6. Resource allocation through the price system and government directions
7. Government control and regulation of the private sector
8. Consumer sovereignty is protected but government controls production, consumption and
distribution
9. Government is committed to the promotion of public welfare and protection of labour,
the poor and the marginalized
10. Control of monopoly
11. Prices are determined by market forces but products of public sector are governed by
administered prices
Advantages of indias mixed economy
1. Achievement of faster economic growth
2. Best allocation of resources
3. Balance between the private and public sectors
4. The establishment of a welfare state
5. Heavy capital investment through planned efforts
Disadvantages of indias mixed economy
1. Undue emphasis on the growth of the public sector
2. Inefficiency of both the sectors
3. Ineffective control of the private sectors
4. Economic fluctuations
5. Failure to solve unemployment and inflation
6. Extensive and corrupt bureaucracy