Which of the following was a defining feature of India’s mixed economy model during the Five Year Plan period?
Coexistence of public sector with regulated private sector
After Independence, India adopted a mixed economy under the Five Year Plans (from 1951), following the Industrial Policy Resolutions of 1948 and 1956.
The public sector was given the 'commanding heights' (heavy and strategic industries), while the private sector was allowed to operate but was regulated through industrial licensing under the Industries (Development and Regulation) Act, 1951, MRTP controls and similar measures.
So private enterprise was not abolished, farming was not limited to cooperatives, and the economy was not a free-market liberal one (liberalisation came only in 1991).
Hence, the defining feature was the coexistence of the public sector with a regulated private sector.
Similar Questions
The second five-year plan was primarily based on which economic model?
Read the following Assertion (A) and Reason (R) carefully and choose the correct option.
Assertion (A): The Third Five Year Plan failed to meet its targets.
Reason (R): The failure was mainly due to external shocks like war and drought.
Read the following Assertion (A) and Reason (R) carefully and choose the correct option.
Assertion (A): The Fourth Five Year Plan aimed at growth with stability and self-reliance.
Reason (R): It was launched after the shocks of war and droughts during the previous plan period.
Important Questions from Fundamentals of Economy
- Which of the following statements is NOT correct regarding India after its adoption of new economic reforms in 1991?
- India initiated structural reforms in 1991 to address a severe balance of payments crisis. Which global institution played a key role in supporting India's 1991 reforms?
The problem of choice arises on account of the pressure of three interrelated facts, viz, human wants are unlimited, means required to satisfy these wants are limited and ____.
"What to produce?" is a basic problem faced by an economy under which of the following central problems?
In which type of economy social justice is accorded higher priority than profit maximization?
