India, then led by Pt. Nehru was appealed by neither capital nor socialist model. In the capital model, the poor were being left in their condition and their status would never be improved, whereas in the socialist model the country would be busy fulfilling the needs of the society and would not be led to development.

India went for a mixed economy, In this model, the market will provide whatever goods and services it can provide well and the government will produce the basic goods and services which the market will not produce.

a. The basic needs like food, shelter were provided by the government.

b. The private players started investing in the market that led to the development of the economy.