The correct option is (c) 2 and 3 only.
Explanation
The Indian Constitution establishes a "Welfare State" rather than a mere "Police State." Under the Directive Principles of State Policy (DPSP), particularly the socialist principles, the State is mandated to secure a social order for the promotion of the welfare of the people, which includes active participation and regulation of the economy.- Statement 1 is Incorrect: The government is not prohibited from operating commercial services. On the contrary, in India's mixed economy model, the public sector has historically played a dominant role in strategic sectors. The Indian Railways, for instance, is a departmental undertaking of the Government of India. While the government may choose to privatize or disinvest, there is no constitutional or legal prohibition against the state running commercial enterprises.
- Statement 2 is Correct: The government actively intervenes in the market to control the prices of essential goods to ensure affordability for the general public. Legislative tools such as the Essential Commodities Act, 1955 empower the government to regulate the production, supply, and distribution of commodities like food grains, drugs, and fuel to prevent hoarding and price spikes.
- Statement 3 is Correct: The State enforces regulations to ensure fair competition and prevent malpractices in the private sector. Bodies such as the Competition Commission of India (CCI) and regulations under the Consumer Protection Act are established to prevent the concentration of economic power (Article 39(c) of DPSP) and ensure fair trade practices.
Key Takeaway: In a mixed economy like India, the government acts as a regulator, facilitator, and entrepreneur. It is empowered to run public sector undertakings, control prices of essential goods, and regulate private businesses to serve the broader public interest.