Is India moving towards being a mixed capitalist economy?

Right from the commence of industrial era our world has progressed in many ways. Our governments and economic systems have changed and modernized tremendously along the way. Human’s needs for society and government resulted in economics which answers the questions what, how, and how much should be produced. Varying economies are a reflection of different government’s approaches to these questions. Based on differing levels of government intervention, economies can generally be classified as one of three distinct systems i.e. A Capitalist Economy, A Socialist Economy and the Mixed Economy. Although each system has its own positives and negatives the mixed economy would seem to be the most effective in fulfilling the majority of the populations needs. But before getting started I would like to discuss something related to economy.
A strong economy builds a strong and great country. The economic growth depends on a stable economy and the people living in the country. The factors that contribute the economic growth of a country are: people, natural resources, education, health and values. People, are the main factor in the growth of an economy, as they are the one who develop, promotes, control and organize the trade, commerce and industry. The natural resources are the other support in the economy, oil and gas is one of the example. It provides a lot of revenue to a country, so if a country has a lot of natural resources, it increases the per capita of a country. Values, this also affects since a corrupt people in the government or in an industry will yields the future to wilderness, nothing will happen and health one of the primary issues which describes the well being of a country. If the people of the country are healthy then your country is healthy. Finally the Education which is the backbone of any country’s success should be strengthened.
Let’s brief ourselves with capitalism. A capitalist economy or the free market economy can be defined as an economic activity, where the means of production are privately owned. So, I assume that as long as humans are self serving by nature and as an individual can seek to fulfill her/his own self interest, the material needs of the whole society would be met. Thus, in a capitalist economy, most of the decisions are made by the citizens acting individually or more private participation.
Whereas, on the other hand, in a socialist economy or the planned economy most of the decisions are made by citizens acting through the state, which co-ordinates and implements these decisions through central planning and command. Thus, In case of a socialist economy, the means of production and distribution are made by the public authority or the Government.
But nowadays, most economies are moving towards an amalgamation of socialism & capitalism known as ‘mixed’ economies because, in reality, both market and state play a substantial role for the benefit of a country. Example:-The U.S. economic system is based more on capitalism, whereas the Chinese system is based more on socialism. Other countries, like India rely on both market and state and so are considered to have mixed economies. Now, let’s focus on the topic which is “Is India moving towards being a mixed capitalist economy?”
I will answer yes to this question but slowly and gradually. India the largest democracy is the best example of unity in diversity. India one of the strongest economies of the world and is also one of the largest economies of the world. Since the year 2000 India is going at a GDP rate of over 7% and on to sustain such high growth has moved into the more happening category Mixed economy as India holds a multitude of opportunities for the private companies to invest. The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, as over 60% of the Indian population earns its livelihood from this area and accounts for 17% of GDP.
Industry accounts for 28% of GDP and employs 17% of workforce. The last but not the least Service sector accounts for the rest 55% of GDP and employees nearly 23% of workforce. If we see at all these sectors we can see a private-public partnership in every field.
But especially in agriculture sector we don’t see much of interest from the private side but with the coming of Reliance and many private players in retail sector, farmers are now getting good returns for their agricultural outputs. Also timely initiatives by the government boost this sector as a large part of workforce is joined to agriculture like the recent Rs. 71,000 crore loan waiver for the farmers.
On the other hand if we see industry sector a lot of interest is shown by the private players. How can we deny the revenue generated by Reliance Industries? In Automobile sector companies like TATA, M&M, Maruti Suzuki, Ford etc are there which shows a lot of influence from private players. In steel industry though there is a monopoly of SAIL, but TATA steel too contributes a large part.
In Telecom sector there are private players like Airtel, Idea working along with Govt. run players like BSNL, MTNL. In power sector too we see a large share from govt. run NTPC but with the entrance of Reliance power the competition has got tough.
In oil & gas industry too we see a lot of public-private joint ventures both in upstream and downstream but the major stakes of oil and gas business lies in the hands of government owned companies like upstream giant ONGC, downstream players like IOC,HPC,BPCL etc. with the entrance of private companies like Reliance, Essar the competition has got tougher.
India’s backbone the service sector has majority stakes in the hands of private players. Companies like Wipro, Infosys has brought the IT revolution in India and helped sustain us a high growth rate. Another rising star in Indian economy is the real estate sector which too has seen an interest from private side like DLF India.
Another sector i.e. the banking sector too has a proper mix of private and public participation. Be it the largest bank of India SBI which is a government run bank or be it second largest bank of India ICICI which is in the hands of private players are working hand in hand to maintain liquidity in our country.
So, if we see at all these examples we can justify that public private partnership i.e. the concept of mixed economy has helped India sustain a high growth rate which has left a mark in the heart of the world. Though these things look good but there are many challenges before the Indian Economy like:-
1. Population explosion: This monster is eating up into the success of India. According to 2001 census of India, population of India in 2001 was 1,028,610,328, growing at a rate of 2.11% approx. Such a vast population puts lots of stress on economic infrastructure of the nation and miniscule natural resources. Thus, India has to control its burgeoning population.
2. Poverty: As per records of National Planning Commission, 40% of the Indian population was living Below Poverty Line in 2003-04. Though this figure has decreased in recent times but some major steps are needed to be taken to eliminate poverty from India.
3. Unemployment: The increasing population is pressing hard on economic resources as well as job opportunities. Though Indian youth constitutes nearly 50% of the population but what the world requires is skilled worker. For this our education system has to be transparent and bring in more and more short term courses which can make our youth fit for diverse jobs. Also a mandatory primary education is necessary to be applied nationwide.
4. Rural urban divide: 70% of the Indian population still lives in villages. There is a very stark difference in pace of rural and urban growth. Unless there isn't a balanced development Indian economy cannot grow.

These challenges can be overcome by emphasizing more on mixed economic reforms where along with government initiatives, the private companies work for society and welfare of the people. These can be done by generating awareness regarding curbing the population menace, generating more jobs by opening new industries, by creating more Special Economic Zones which not only create employment but marks India’s growth as an Infrastructure giant etc. Together, govt. and private companies can bring a change in India’s future.