After Independence, India has adopted mixed economy as economic developmental strategy. Both public and private sector co-exist side by side. In order to achieve rapid economic growth, planned development economy was introduced.
Economic Development Strategy after Independence:
(i) Both public and private sectors were allotted to carry business activities. Public sector was allotted activities like coal, mining, steel, power, roads etc. Private sector was allotted to establish industries subject to control and regulations in the form of law.
(ii) Public sector was given major push by the Government. Maximum revenues in this sector was invested which increased from Rs. 81.1 crore in First Five-Year Plan (1951-56) to Rs 34,206 crores in Ninth Five-Year Plan (1992-97)
(iii) Public sector was given importance in order to eliminate poverty, unemployment etc.
(iv) Public sector contributed to the industrialisation of the economy. It also helped Indian economy to achieve a considerable degree of self-sufficiency.