Mixed economy is the basic framework of planning in India. Justify the above statement?
Mixed economy is an economic system in which major 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 well and the government will provide essential goods and services which the market fails to provide.
Merits of Mixed Economy
(i) It gives proper scope for full play of private initiative and profit motive.
(ii) Planned economy development ensures stability and balanced development.
(iii) Competition between the private sector and public sector industries is generated to maximise productivity.