Q. Which of the following is main characterstics of Indian Economy?
(a) Capitalist economy
(b) Socialist economy
(c) Mixed economy
(d) None of the above
Answer: c
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Indian economy is a prominent example of mixed economy. Amixed economic system is a system that combines aspects ofboth capitalism and socialism. A mixed economic systemprotects private property and allows a level of economicfreedom in the use of capital, but also allows for governmentsto interfere in economic activities in order to achieve socialaims. Mixed economies typically maintain private ownershipand control of most of the means of production, but oftenunder government regulation and socialize selected industriesthat are deemed essential or that produce public goods. Gandhian socialist economy is based on decentralisation andequal distribution of resources without any exploitation andviolence. Self-employment and self-reliance are key featuresof Gandhian self-sufficient economy.