Question

Economic planning by which both the state and the private sector played a role in development was called a _____________ model.

Answer 1

The Mixed Economy Model is the model of economic planning by which both the state and the private sector play a role in development.

• The Planning Commission was established in 1950 by the Government of India.
• One of the major objectives was to build a modern industrial and technical base for the nation.
• To generate more jobs and to increase production, both the private sector and the Government would play complementary and important roles, hence there was a broad agreement for a mixed economy.
• The Planning Commission had to define how to achieve a balance between different states and regions, which industries must be initiated by the market, and which industries should be initiated by the states.
• The Planning Commission was assigned the task of designing and executing suitable policies for the development of the economy.