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Which Economic System was chosen by India after Independence and Why?
India Chose Mixed Economic System after Independence
It is because it couldn’t choose either capitalist or Socialist system
Reason India didn’t choose Capitalist System
In a Capitalist Economy, goods were distributed on basis of Purchasing Power
In India, most of people were poor and had low purchasing Power
So if India chose Capitalist System, many people will be deprived of goods and chance to improve their quality of life
Reason India didn’t choose Socialist System
In a socialist Economy, all factories and farm are owned by government
In India, before Independence these were with Private Sector
So it was not possible for govt to change ownership pattern of land and farm after independence
Why India Choose Mixed Economy?
India wanted to combine benefits of socialist economy and capitalist economy without the drawbacks
It wanted to be a strong socialist society with Private Sector and Democracy
MCQ Other Books
Question 1
India adopted the _____ economic system.
- Capitalist
- Mixed
- Socialist
- None of these
B. Mixed
Explanation
India Chose Mixed Economic System after Independence
It is because it couldn’t choose either capitalist or Socialist system
Reason India didn’t choose Capitalist System
In a Capitalist Economy, goods were distributed on basis of Purchasing Power
In India, most of people were poor and had low purchasing Power
So if India chose Capitalist System, many people will be deprived of goods and chance to improve their quality of life
Reason India didn’t choose Socialist System
In a socialist Economy, all factories and farm are owned by government
In India, before Independence these were with Private Sector
So it was not possible for govt to change ownership pattern of land and farm after independence
Why India Choose Mixed Economy?
India wanted to combine benefits of socialist economy and capitalist economy without the drawbacks
It wanted to be a strong socialist society with Private Sector and Democracy
