Mixed economy
Topic: Secondary Activities: Manufacturing and Industrial Location · NCERT: Class 12, Ch 5 "Secondary Activities"
Meaning
A mixed economy is one in which public sector firms (owned by the government) and private sector firms (owned by individuals or companies) work side by side. It sits between two other models. In a capitalist economy, individuals own the factors of production and private firms dominate. In a socialist economy, the state owns most industry. A mixed economy lets the government run key industries while private businesses grow in other areas.
Example
India is a mixed economy. Government-owned SAIL runs the Bhilai steel plant in Chhattisgarh. Not far away, privately owned Tata Steel runs its plant at Jamshedpur in Jharkhand. Both make steel in the same country.
Don't confuse with
- Joint sector industries: a joint sector firm is one company that the government and private investors own together. A mixed economy is a country where many separate public firms and private firms exist alongside each other.
Related concepts
- Basic industries
- Consumer goods industries
- Public sector industry
- Private sector industries
- Joint sector industries