MIXED ECONOMY IN THE CONTEXT OF INDIAN ECONOMY
The Industrial Policy Resolutions passed in 1948 and 1956 gave a concrete shape to the concept of mixed economy. According to the Industrial Policy Resolution of 1948, industries in India were broadly divided into four categories: (i) ExclUsive government monopoly (ii) Government-controlled sphere; (iii) Industries subject to State regulation and control and (iv) the rest of the industrial field which was to be the sphere of private enterprise under general control of the Stale. In other words, the whole industrial field was split up into two broad sectors public sec tor which was exclusively reserved for the government and the private sector in which private enterprise could operate freely. The Industrial (Development and Regulation) Act, 1951 was the main instrument by which the Government controlled and regulated private industrial enterprise i.e controlled the location, setting up and expansion of private industrial undertakings.
Mixed Economy in Dilemma
Many countries after the IInd world war either embraced socialism (some of them forced) or opted for mixed economy. Some economists arc of the opinion that there is no pure capitalism and pure socialism, but nearly all of them to a certain extent is mixed form. The Indian economy after independence opted for a mixed economy concept, it became a very strong economy during the late seventies and early eighties. The “Dunkel Draft Text” opened the gates of all developing countries for the entry of MNC and TNC which announced the slow death of mixed economy. The collapse of GATT and a more refined wro came into existence in 1995, which further wiped out the concept of mixed economy in the world. The mixed economy came into existence with the positive aspects of capitalism and socialism. with the rejection of negative aspects of both the system. Today mixed economy concept has remained only in the book as that of an academic interest, the rest is controlled by the capitalists economy. Mixed economy concept was very much responsible for the rapid development of the economies of the west. The British, The French,the Swedish economies to certain extent was dominated by the mixed economy. The infra structure. including transportation and other activities were controlled by the government. These facilities were owned and managed successfully by the respective governments. Even today in some countries including India, transportation, education, banking and some other facilities arc still owned by the governments, but it is in the process of privatisation .