ntrod    tion       1.9
     organising the economy was solved for all times       market mix also changed. The redefined mixed
     to come. The document pin-pointed good things         economy for India had a declared favour for the
     of both the systems and concluded that they don’t     market economy. Many economic roles which
     have the relationship of dichotomy, but that of       were under complete government monopolies
     complimentarity. The real issue is not whether to     were now opened for participation by the private
     have market or the state but having both of them      sector. Examples are many—telecommunication,
     together makes more sense. Market economy might       power, roads, oil and natural gas, etc. At the same
     suit one economy, while it might not suit another     time, the responsibilities which were till date
     due to the different socio-economic conditions        being shouldered by the state alone and which
     of the economies in reference. Similarly, the state   could be taken up by the state only were given
     economy model might serve one economy, but            extra emphasis. In this category comes the whole
     might not serve the other.                            social sector—education, healthcare, drinking
           The real answer seems going for neither the     water, sanitation, nutrition, social security, etc.
     market nor the state but a judicious mix of both.          The economic system of India was a mixed
     As the state-market mix depends upon the socio-       economy in the pre-1991 years as it is in the post-
     economic and political conditions of an economy,      1991 years, but the composition of state-market
     there can never be a mechanical prototype of the      mix has gone for a change. In future, as the socio-
     mixed economy, which could be applied upon            economic and political factors will be changing,
     every economy universally. Every economy needs
                                                           India will be redefining its mixed economy,
     to explore its own mixture of market and state.
     Again, the same state might need to redefine
     composition of the state-market mix in the                 The emergence and evolution of the mixed
     coming times according to its changed socio-eco-      economy was thus able to settle the long-standing
     political scenario.                                   debate as to what was the best way to organise
                                                           an economy. Starting in 1776 with the Wealth
           The process of economic reforms in India
                                                           of Nations of Adam Smith, it continued till we
     started in 1991. It was, in fact, the search for a
                                                           had the World Development Report of 1999 by
     new ‘state-market mix’, while India had been a
     mixed economy since Independence.                     WB.5 The dilemma continued for almost two
                                                           and a quarter centuries (1776–2000). Today,
           After Independence, India opted for a mixed
                                                           once the World Trade Organization (WTO) has
     economy when the state-market dilemma was at
                                                           taken over the world economy, the brand of the
     its peak globally . In the process of organising the
                                                           mixed economy it advocates, is more inclined
     economy, some basic and important infrastructural
                                                           towards the free market economy. However, it
     economic responsibilities were taken up by the
                                                           does not propagate to make the state an economic
     state/governments (centre and state) and rest of the
     economic activities were left to private enterprises, non-entity, i.e., it leaves scope for greater state
     i.e., the market. The kind of state-market mix for    intervention in required areas if needed.
     which India went was thought to be fit for the
     socio-economic and political conditions of the           rolE of thE statE in an Economy
     time. Once the country started the process of         The dilemma of searching the ideal way of
     economic reforms in early 1990s, the prevailing       organising an economy, as it evolved, was also
     state-market mix was redefined and a new form         going to solve another riddle. This riddle was the
     of mixed economy began to be practised. As the
     socio-economic conditions had changed, the state-        5.  World Bank, World Development Report, 1999.