This document discusses economic planning and the transition from a mixed to a market economy. It defines economic planning as directing economic activity outside of market mechanisms. A mixed economy has characteristics of both market and planned economies, with a role for both the public and private sectors. A market economy relies solely on supply and demand to determine prices and allocate resources. The document notes that India has practiced economic planning since independence to promote growth, self-reliance, and development. It explains that a mixed economy permits some private industry but also public ownership, while a market economy is controlled solely by supply and demand. The transition involves reducing regulations to allow market forces to drive the economy more effectively.

1. PRANAV DHANANIWALA

2. Contents
 Introduction of Economic Planning
 Essential Objectives of Planning
 Definitions of Mixed and Market Economies
 Transition from Mixed to Market Economy

3. Introduction of Economic
Planning
 Planning is an economic mechanism for resource
allocation and decision-making.
 Economic planning refers to any directing or
planning of economic activity outside the mechanisms
of the market.
 The Economic Planning has been going on great since
independence.
 This has played a major role in the development of the
country and led India become self sufficient.

4. Essential Objectives of Planning
 High Rate of Growth
 Economic Self-Reliance
 Social Justice
 Modernization of the Economy
 Economic stability

5. Definitions Of Mixed And
Market Economies
 Mixed economy is an economic systems in which
both the state and private sector direct the economy,
reflecting characteristics of both market economies
and planned economies.
 A market economy is an economy in which decisions
regarding investment, production and distribution are
based on supply and demand and the prices of goods
and services are determined in a free price system.

6. Transition From Mixed to
Market Economy
 A mixed economy permits private participation in
manufacturing and production.
 It also contributes to public ownership in fabrication
and manufacturing which can take full advantage of
social welfare.
 In a mixed market economy this system is governed by
licensing and regulation policies.

7. Transition From Mixed
Economy
to Market Economy(contd…)
 A market economy is known as a "free market
economy".
 It is controlled by the law of supply and demand which
in return will determine the price of services and
goods.
 In a market economy the exchange of goods, services,
and information take place freely according to the
supplier and the buyer.

8. Transition From Mixed to
Market Economy(contd…)
 Mixed economy’s regulations may paralyze features of
production.
 Lack of price control management can cause shortages
in goods and can result in recession.
 The market economy is merely driven by the sellers
and the buyers with very few government regulations.
 This in turn leads to effective marketing.