- a.both agriculture and industry are equally promoted by the State.
- b.there is co-existence of public sector and private sector.
- c.there is co-existence of foreign firms and domestic firms.
- d.economy is under joint control of elected government and military.
Answer: (B) there is co-existence of public sector and private sector.
A mixed economy is one in which the public sector (state-owned enterprises and planning) and the private sector (privately owned firms working through the market) exist side by side. India adopted this model after Independence through the Industrial Policy Resolutions of 1948 and 1956, which reserved the 'commanding heights' for the public sector, and has moved towards a larger role for the private sector since the reforms of 1991. It stands between capitalism (private ownership, market decisions) and socialism (state ownership, central planning). Options A, C and D describe sectoral balance, foreign investment and a form of government, none of which defines a mixed economy.