Q.Mixed economy means .....

A mixed economy is an economic system in which both the private sector, operating through free markets, and the public sector, owned and directed by the state, coexist and together decide what is produced, how it is produced, and for whom. Unlike pure capitalism, where markets alone allocate resources, or pure socialism, where a central planning authority owns and directs virtually all production, a mixed economy blends the two: the government typically retains ownership or control of core, strategic industries (historically, in India's case, heavy industry, railways, banking and key utilities) and uses planning and regulation to guide overall economic direction, while leaving most consumer-goods production, agriculture, trade and a large part of services to private enterprise operating through the price mechanism. The reasoning behind adopting a mixed economy is to capture the efficiency and innovation that markets tend to generate while using government intervention to correct market failures, provide public goods, build infrastructure, and reduce the inequality and instability that an unregulated market can produce. India adopted this framework at …