RAS question
The concept of 'Mixed Economy' in India means:
Correct answer: (B) Coexistence of public and private sectors.
In India, a mixed economy means the coexistence of the public sector and the private sector.
Explanation
India adopted a mixed-economy model after Independence, which means that both government-owned and privately owned business enterprises operate within the same economy. NCERT explains this through the distinction between the public sector and the private sector: private-sector businesses are owned by individuals or groups of individuals, while public-sector organisations are owned and managed by the government, either wholly or partly. The 1956 Industrial Policy Resolution gave importance to the public sector while also emphasising the mutual dependence of public and private sectors. That is why the core idea in the question is not a sectoral split between agriculture and industry, or a geographic split between rural and urban areas, but the institutional coexistence of public and private enterprise.
Why the other options are wrong
- (A) Agriculture and industry can coexist in many types of economies, but that does not define the mixed-economy model described for India.
- (C) Domestic and foreign trade describe the scope of trade activity, whereas mixed economy is about the simultaneous operation of public and private enterprise.
- (D) Rural and urban economies are geographic categories, not the public-private ownership structure that defines a mixed economy.
Concept
This tests the basic Indian Economy concept of economic systems and sectoral ownership. It recurs in RAS because questions on planning, industrial policy and public-sector reforms often begin with India’s mixed-economy framework.