In India, the idea of a planned economy after Independence was adopted on the basis of which underlying economic system?

Introduction / Context:
After Independence, India chose to follow a planned economic path, with Five Year Plans guiding development priorities. However, this planning did not mean that the country adopted a purely socialist or purely capitalist model. Instead, India chose a middle path that combined elements of both public and private ownership. This question asks you to identify the broad economic system on which India's planned economy was based, an important concept in both economics and polity sections of exams.

Given Data / Assumptions:

- The focus is on the economic system underlying India's planned development strategy.- The options include mixed, capitalist, Gandhian, socialist and feudal systems.- We assume basic knowledge of different economic system types.

Concept / Approach:
A mixed economy is one in which both the public sector and the private sector play important roles. The state owns and manages key industries, infrastructure and strategic sectors, while private individuals and firms operate in many other areas, especially in agriculture, small industry and services. India's planning model, especially during the early decades after Independence, reflected this mixed economy approach: large public sector undertakings coexisted with a vibrant private sector, all guided by national Five Year Plans. Therefore, India's planned economy is best described as being based on a mixed economy system.

Step-by-Step Solution:
1. Recall that India adopted planning through the Planning Commission and Five Year Plans, starting in the early 1950s.2. Observe that India did not abolish private property or private business; instead, it encouraged both public sector enterprises and private enterprises.3. Understand that a purely capitalist system would leave most decisions to market forces with minimal state ownership, which is not what India chose initially.4. Recognise that a fully socialist system, with almost all means of production in state hands, was also not adopted; private sector continued to exist and grow.5. Conclude that India's planned economy fits the definition of a mixed economy system and select that option.

Verification / Alternative check:
Standard Indian economy textbooks explicitly describe India as a mixed economy, especially in the context of planning. They explain that heavy industries, railways, power, steel and other strategic sectors were largely in the public sector, while agriculture remained largely in private hands and many consumer goods were produced by private firms. Government policies, licences and controls tried to coordinate both sectors under a common plan framework. This confirms that mixed economy is the correct description of India's planned system.

Why Other Options Are Wrong:
- Capitalist system: would imply minimal state intervention and ownership, unlike India's large public sector enterprises and elaborate planning machinery.- Gandhian village centric system: while Gandhian ideas influenced debates, the actual planning model did not fully follow his vision of self sufficient village republics.- Fully socialist system: India did not nationalise all means of production; a large private sector remained.- Feudal agrarian system: refers to pre modern land relations and is clearly not compatible with the post independence planning model.

Common Pitfalls:
Students may loosely refer to India as socialist because of the dominance of the public sector and state controls in the early decades. Others may focus on market reforms after 1991 and think of India as purely capitalist. Both views ignore the basic definition of a mixed economy, which combines features of both systems. To avoid confusion, remember the key phrase India as a mixed economy with planning, where both public and private sectors coexist under a plan framework. This makes it straightforward to pick the correct answer in the exam.

Final Answer:
India's planned economy after Independence was based on a mixed economy system.