INDIAN ECONOMY

INDIAN ECONOMY

• 1.
  State of IndianEconomy on the Eve of Independence Class- XII
• 2.
  Synopsis 1. Before theBritish Rule 2. During the British Rule 3. Components of Indian Economy 4. Agricultural Sector in India During Colonial Rule 5. Industrial Sector in India During Colonial Rule 6. Foreign Trade in India During Colonial Rule 7. Demography in India During Colonial Rule 8. Occupational Structure in India During Colonial Rule 9. Infrastructure in India During Colonial Rule 10. Positive Impacts of British Rule in India
• 3.
  Before the BritishRule • India had an independent, self-reliant and prosperous economy. • Colonial rule over India started from 1857 and lasted for nearly 200 years till India gained independence on August 15,1947. • During 18th century India was an agrarian economy. • India was also known for its developed handicraft industries, like cotton and silk textiles, metal industries, precious stone works, gold and silver jewellery. • These industries had fine quality and high standards.
• 4.
  During The BritishRule • Colonial Government followed policies of protection & promotion. • This transformed India as a supplier of raw materials as well as consumer of finished products from Britain. • Colonial Government never estimated India’s national and per capita income. • Estimates by V.K.R.V. Rao were considered to be significant.
• 5.
  Components of IndianEconomy 1. Agricultural Sector 2. Industrial sector 3. Foreign Trade 4. Demography 5. Occupational Structure 6. Infrastructure
• 6.
  Agricultural Sector inIndia During Colonial Rule • Agrarian: 85% of the population lived in villages. • Agricultural Productivity: Remained very low. • Stagnation: Various land settlement system led to no investment in agriculture and all profits went to Zamindars. • Revenue Settlement Terms: If Zamindars failed to deposit fixed revenue on the specific date, then they would loose land rights. • Lack of modernisation: No irrigational facilities were available, farmers depended on monsoon for crops. • Commercialisation of Agriculture: Britishers forced farmers to grow cash crops particularly Indigo, which spoiled their lands.
• 7.
  Industrial Sector inIndia During Colonial Rule • Deindustrialisation: Britishers reduced India’s status as raw material supplier and turned it into a sprawling market for British industries finished products. • Decay of indigenous handicraft industries. • Slow progress of modern industries like TISCO in 1907. • Lack of capital goods industry for producing machine tools. • Growth rate of the new industrial sector and its GDP contribution remained small. • Limited public sector operations which remained confined to railways, communication, power, ports, etc.
• 8.
  Foreign Trade inIndia During Colonial Rule Image By: Byju
• 9.
  Foreign Trade inIndia During Colonial Rule • Restrictive policies of production, trade and tariff by Colonial Government adversely affected India’s Foreign trade. • Reduced status of India as an exporter of raw material and importer of finished goods. • Monopoly control by Britain over India’s exports and imports. • Suez Canal intensified British control over India’s Foreign trade. • Misuse of large export surplus (exports were more then imports) by Britishers even when India had limited food grains for self consumption, which led to the drain of Indian wealth.
• 10.
  Demography in IndiaDuring Colonial Rule • First population census of British India was conducted in 1881. • 1921 is the year of Great Divide, as low death rate was noticed after that year. • Literacy rate was less than 16%. • Inadequate public health facilities. • Infant Mortality rate was high. • Life expectancy was low at 32 years. • Extreme poverty existed.
• 11.
  Occupational Structure inIndia During Colonial Rule • Occupational structure means the distribution of working persons across different economic sectors. • Economic sectors comprises of Primary Sector, Secondary Sector and Tertiary Sector. • Madras Presidency, Bombay and Bengal witnessed a decline in agricultural sector and increase in manufacturing and service sector. Image by: Byju
• 12.
  Infrastructure in IndiaDuring Colonial Rule • Infrastructure is the basic physical and organizational facilities, which includes buildings, roads, power supplies, etc. • Roads constructed was primarily to use the army and raw materials within India to send them in England via railway or port. • British introduced the railways in India in 1850 to enable people to undertake long distance travel. • Railways also increased commercialisation of Indian agriculture. • Some measures were taken to develop Inland trade and sea lanes but inland waterways proved to be costlier. • The introduction of the expensive system of electric telegraph in India, served the purpose of maintaining law and order.
• 13.
  Positive Impact ofBritish Rule in India • Development of railways which brought unity to the originally disconnected areas and helped developed a modern economy. • Development of transport and communication which helped in the regulation of food supply and medical facilities during famines. • Monetary system of exchange which helped India to overcome the problem of double coincidence of wants under barter system. • Effective administration by Britishers left a legacy of effective work culture for the people of India. • Commercialisation of agriculture.