Indian Economy On The Eve Of Independence
The main purpose of this Topic is to make you familiar with India’s economy in 1947 and present some important factors that leads to underdevelopment and stagnation of the India’s Economy.
The structure of India’s present day economy is not just of current making, It has it’s root steeped in the history specially British India.
It’s important for us to know country ‘s economic conditions before Independence to understand present economic condition.
Two most important purpose of Britishers are-
Overview of Indian economy during British rule
Cause for low productivity and stagnation of agriculture during British rule
Low productivity in agriculture during British period is due to land settlement system.
It is one of the reason for the more harsh attitude of zamindars towards cultivators .
However, the British officers hardly cared of these rules. This created widespread discontent among the Indians
Low levels of technology-There is negligible use of scientific techniques
Negligible use of fertilizers-fertilisers are rarely used
Lack of irrigation facility-irrigation facility and tools are not adequate .
Growth in Agriculture-commercialisation of agriculture results in high yield of cash crops in some areas but in no way help farmers because it was used by Britishers .
Partition-Highly irrigated and fertile land went to Pakistan this affects India’s output.
Reason behind failure of industrial sector during British rule
British India wants to make India only exporter of raw material to Britain and feeder of the finished products from Britain .
Results of failure of industrial sector during british rule
Unemployment, demand in the Indian consumer market this result in more imports of cheap manufactured goods from Britain.
Hardly any Capital goods industry (which produce machine tools)
Lack of this lower the rate of industrial development in India.
Small growth rate-Growth rate of new industrial sector and it’s contribution to the GDP remained very small .
Limited area of operation-new industrial sectors confined only to the railways, communications, ports, power generation and some other departmental undertaking.
Exports from India-raw silk,wool,sugar,jute, indigo etc
This export did not result in any gold or silver into India it is one way development and that is towards Britain
Imports to India-Finished goods like cotton, silk and woolen cloths and capital goods like machines.
Monopoly-Britain maintained monopoly control over India’s export and imports.
Neither the total population nor the rate of population growth rate was very high during colonial rule.
Agriculture sector accounted for the largest share of workforce,which is usually remained at a high of 70-75 percent while the manufacturing and the services sector accounted for only 10 and 10-15 percent respectively.
Under the British rule basic infrastructure develops such as railways, ports, water -transport, telegraphs and posts did develop, main motive behind it to serve various colonial interests instead of providing basic amenities to the people.
The British introduced the railway in India in 1850 most important contribution.
It helps the people to travel long distance within short time and help in the commercialisation of agriculture.
Conclusion-condition of economy during British rule is not very appreciating the agricultural output is very low due to wrong policies of colonial government ,Industrial sectors was crying for modernization, diversification, capacity building and increased public investment.
In nutshell , the social and economic challenges before the country were enormous.
Posted by Akash Pandey | Saturday, 1 August 2015 | 11:30:00 am