Final answer:
India's economic reforms in the 1980s led the country away from a planned or command economy towards a market-oriented economy, focusing on privatization and reducing government control.
Step-by-step explanation:
By the 1980s, economic reforms in India that encouraged private investment have led India away from a planned economy or command economy. Initially, India adopted a mixed-economy approach with significant government intervention and control. However, starting in the 1990s, India began economic liberalization, moving towards a more market-oriented economy by reducing state control and privatizing sectors such as telecommunications and heavy industry.
Economic reforms have resulted in increased productivity and efficiency but also in challenges such as higher prices and potential loss of access to services. The transition to a market economy involves complex trade-offs between efficiency and equity, such as those seen in China's market-oriented reforms beginning in 1978. However, despite such difficulties, the benefits of a more interconnected global economy compel nations like India to continue on the path of liberalization.