A capitalist economy is an economic system in which the means of production is owned and controlled by private individuals with the aim of making profit. A socialist economy is an economic system in which the means of production is owned and controlled by public institutions. A mixed economy is an economic system which combins capitalist and socialist economy, it is the economy in which the means of production is controlled by both private individuals and public institutions. Therefore, India followed the principle of a mixed economy which allowed some aspect of society to be controlled by the government, while others were not.