Study the following passage carefully and answer the questions that follow :
“India did not follow any of the two known paths to development – it did not accept the capitalist model of development, nor did it follow the socialist model. Elements from both these models were taken and mixed together in India. That is why it was described as ‘mixed economy’. Much of the agriculture, trade, and industry were left in private hands. The state controlled key heavy industries, provided industrial infrastructure, regulated trade and made some crucial interventions in agriculture.”
i. Explain the concept of the capitalist model of development
ii. Highlight the main feature of the socialist model.
iii. Explain any three points of criticism against the mixed model adopted by India.
The capitalist model of development is characterised by provision of private ownership of property and means of production, minimum state control on economic enterprises, and a free economy regulated by competition.
ii. The main features of socialist model are:
a) Public Ownership
b) Planned Economy
c) Classes of Society
d) State is responsible for basic necessities of life
e) Equal Opportunity to all
f) Non-existence of competition and limited choice of consumer products
g) Pricing Mechanism
iii. a) It brings about the fear of nationalization.
b) It can lead to higher taxes.
c) It could risk the government to go too far.
Couldn't generate an explanation.
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