Mixed economy means an economy where

A mixed economy is defined as an economic system that integrates elements of both market (capitalism) and planned (socialism) economies [t8][t9]. The core characteristic of this system is the co-existence of the public sector and the private sector [c1][t4]. In India, this concept was formally introduced through the Industrial Policy Resolution of 1948, which demarcated specific fields for state and private enterprises to co-exist and co-prosper [c1]. In such a system, the government (public sector) typically owns assets and provides essential services like railways or defense, while private individuals or companies (private sector) operate businesses guided by profit motives [c2][t3]. This dual structure allows for private economic freedom and property rights while maintaining government oversight to provide public goods, regulate monopolies, and ensure social welfare [t4][t7].

Sources

1. [1] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > EVOLUTION OF INDUSTRIES > p. 2
2. [2] Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 2: SECTORS OF THE INDIAN ECONOMY > SECTORS IN TERMS OF OWNERSHIP: PUBLIC AND PRIVATE SECTORS > p. 32
3. [3] https://www.investopedia.com/terms/m/mixed-economic-system.asp