The concept of a mixed economy was central to India’s early planning strategies. In the context of India’s Five-Year Plans, what does the term 'mixed economy' refer to?​

Correct option is D

The correct answer is (D) Coexistence of public and private sectors.

Explanation:

• The concept of a mixed economy combines elements from both capitalist and socialist economic systems. In a mixed economy, both the public (government-owned) and private (privately-owned) sectors coexist and operate together.
• The government controls key industries such as infrastructure, defense, and essential services, while the private sector is allowed to operate freely in areas like manufacturing and services.

Information Booster:

• A mixed economy ensures a balance between market forces (where goods and services are distributed based on demand and supply) and government control (which aims to address social welfare needs and reduce inequalities).
• India's Five-Year Plans followed the mixed economy model, promoting both industrial growth through the private sector and large-scale public sector investments in essential areas.

Additional Information:

• (A) Balanced growth of rural and urban areas: This refers to a development goal rather than the core concept of a mixed economy.
• (C) Mix of socialism and communism: While socialism is part of a mixed economy, communism involves total state control, which is not a feature of mixed economies.