Indian economy after independence need a good plan for economic development. It is the time after Independence that Leaders of the country has to manage the economy and give a boost to our economic development. With this Leaders are having three questions in their mind for the development of the economy. The three questions are-
- What goods and services to produce.
- How to produce these goods and services.
- How the goods and services to distribute.
Different Economic system are there present in the Economy at that time. Leaders has to choose the best one for their Economic development.
Different Economic system that prevail at that time are-
- SOCIALISM– It is a type of economic system in which government will take decision. The government will take decision which will give benefit to all. Jawaharlal Nehru also supported Socialism.
- CAPITALISM– It is a type of economic system in which market forces will decide what to produce. Demand and supply will take all decisions, as whatever is in demand that has to be produce. It will not produce the product that is essential, if it is not in demand.
- MIXED ECONOMY– It is mixture of both socialism and capitalism.