Some economic models within the framework of Socialism are:
Public-enterprise centrally planned economy
Public-enterprise state managed market economy
Public enterprise employee managed market economies
Public enterprise participatory planning
Of the models mentioned above, the public enterprise state managed market economy or a form of social market economy and the model of mixed economy are the most popular in contemporary times.
The “social market economy” or “market socialism” has the state owning the means of production but there is a market directed and guided by socialist planners.
The market is given the free hand to allocate and distribute the country’s resources based on the forces of supply and demand. It thus retains the essential feature of efficiency, growth and production of surplus value generally associated with capitalist economies.
This model was effectively launched in China after reform, Hungary, Yugoslavia and Czechoslovakia in the 1970’s and 80’s and is presently adopted in Germany.
Government ownership is retained in key sectors such as heavy industry, energy and infrastructure while private ownership or entrepreneurship with public-private participation is followed along the lines of the mixed economy model.
India also follows a model of a mixed economy.
The greatest asset of this sort of economy is the decentralization of decision making and giving local managers more freedom to respond to market conditions.
This also sometimes called a mild version of state socialism and are called social democracies where the socialists do not overthrow the capitalist system altogether bit mould it to social purpose