India follows a mixed economy policy, 'Mixed Economy' policy refers to :

(1) The industrial sectors are reserved by government

(2) The industries are divided between the govt. and private individuals

(3) The primary sectors are reserved by the private individuals

(4) Some economic sectors are reserved for govt, while others are open to the private sector

4

The correct answer is Option 4: 4

A mixed economy is one in which both the public sector (government) and the private sector (individuals and businesses) play significant roles in economic decision-making and production.

In India:

• Certain key sectors (like defense, railways, atomic energy) are primarily managed by the government.

• Other sectors (like consumer goods, agriculture, services, etc.) are open to private enterprise.

• The government also regulates private industry to ensure social welfare and prevent market failures.

Note: Option 2 also reflect an important aspect of a mixed economy — the coexistence of both government and private participation in industries. However, Option 4 is more appropriate and accurate because it clearly explains how this division works. In a mixed economy like India’s, certain sectors are specifically reserved for the government (such as defense, railways, atomic energy), while others are open to private individuals and enterprises. Option 4 captures this structured division more precisely, which is why it is considered the most suitable answer. Further, this is the answer as per NTA answer sheet.