A centrally planned economy is one in which the central government of a state maintains control over the economy through regulation and, often, state ownership of the means of production. Those in the government who are responsible for economic planning decide what should be produced and in what quantities and then develop plans to achieve the desired levels of production. The state also controls the distribution of revenues and other major economic activities.
Prominent examples of planned economies include the Soviet Union, the People’s Republic of China before its capitalist reforms in the early 1980s, and India before its economic reforms in 1991