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  • Economics Notes PDF Class 12 Indian Economy On The Eve of Independence

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    The Indian economy was in poor shape on the eve of independence from British rule. Agriculture employed 85% of the population but productivity was low due to a lack of investment. Industry had declined significantly under British policies that destroyed Indian handicrafts and imposed tariffs. Infrastructure like roads, railways, and ports had been developed but not to benefit Indians. Overall, the economy was undeveloped with high poverty, illiteracy, and poor health outcomes as a result of the exploitative policies of British colonial rule over the past two centuries.

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    The Indian economy was in poor shape on the eve of independence from British rule. Agriculture employed 85% of the population but productivity was low due to a lack of investment. Industry had declined significantly under British policies that destroyed Indian handicrafts and imposed tariffs. Infrastructure like roads, railways, and ports had been developed but not to benefit Indians. Overall, the economy was undeveloped with high poverty, illiteracy, and poor health outcomes as a result of the exploitative policies of British colonial rule over the past two centuries.

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    © All Rights Reserved
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    Flag for inappropriate content
    Download as pdf or txt
    2K views3 pages

    Economics Notes PDF Class 12 Indian Economy On The Eve of Independence

    Uploaded by

    Man your voice is breaking kutty
    The Indian economy was in poor shape on the eve of independence from British rule. Agriculture employed 85% of the population but productivity was low due to a lack of investment. Industry had declined significantly under British policies that destroyed Indian handicrafts and imposed tariffs. Infrastructure like roads, railways, and ports had been developed but not to benefit Indians. Overall, the economy was undeveloped with high poverty, illiteracy, and poor health outcomes as a result of the exploitative policies of British colonial rule over the past two centuries.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Economics Notes PDF


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    Indian Economy on the Eve of Independence


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    (Class – 12)

    For More Notes PDF: CommerceLerning.com


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    INTRODUCTION
    The current nature of the Indian economy is not solely owing to its current creation; its roots are deeply rooted in
    our history, i.e. India's past, particularly during the period when India was under British dominion. The reign lasted
    around two centuries. The Indian economy was in disarray on the brink of independence. In order to have a
    brighter future for ourselves and future generations, we as a country have to start from scratch and all over again.
    Our desire to obtain information and understanding was also stifled by 200 years of British control. We were
    denied an education because we were held as slaves by our oppressors. As a result of their acts, we were illiterate
    by the end of their rule. On the eve of independence, the Indian economy was brimming with people who had no
    idea how to serve the country.

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    LOW LEVEL OF ECONOMIC DEVELOPMENT

    ● The colonial govt., never made any sincere attempt to estimate India’s national and per capita income.

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    ● The estimates given by Dr. V.K.R.V. Rao suggested that the growth rate of GDP was about 2% per annum
    while the growth of per capita output was just 1/2 (0.5) percent per annum.
    ● Since high-quality materials were employed and a high standard of craftsmanship was evident in all Indian
    imports, Indian products had a global market.

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    ● The economic policies of the colonial government were highly influenced by the self-centered economic
    interests.

    AGRICULTURE SECTOR

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    Around 85% of the Indian population was dependent on agriculture during colonial rule.
    Agricultural productivity became low. The sector experienced some growth due to various systems of land
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    settlements which led to expansion of aggregate area under cultivation.
    ● High yield of cash crops in certain areas were observed due to commercialisation of agriculture.
    ● There was little progress in irrigation still the sector suffered due to lack of investment in terracing, flood
    control, drainage and desalination of soil.
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    INDUSTRIAL SECTOR
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    ● De-industrialization- Decline of Indian handicraft industry.


    ● Capital goods industries were lacking
    ● Limited operation of public sector
    ● Discriminatory tariff policy.
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    ● Competition from Machine made products


    ● Introduction of Railways in India
    ● Lack of Heavy and Basic Industries

    FOREIGN TRADE
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    ● The structure, composition and volume of India's foreign trade was adversely affected by the restrictive
    policies of the commodity production, trade and tariff of the colonial government.
    ● Primary products such as silk, cotton, wool, sugar jute, Indigo were exported from India.
    ● Foreign trade was largely restricted to Britain, with only a handful of countries such as China, Sri Lanka,
    and Persia (Iran) being permitted.

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    ● The Indian economy was gravely exploited by the British government which led to the drain of Indian
    wealth.

    DEMOGRAPHIC CONDITION
    ● High death and Birth rate-40 and 48 per thousand respectively.
    ● High infant mortality rate-218 per thousand.
    ● Mass Illiteracy-84% illiterate.
    ● Low life expectancy- 44 years
    ● Low standard of living- People used to spend 80% to 90% of their income on basic needs.

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    ● Lack of public health facilities
    ● Female Literacy level was about 7%.

    OCCUPATIONAL STRUCTURE

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    During the colonial period, the occupational structure of India exhibited its backwardness. The agricultural sector
    accounted for the largest share of the work force which remained at a high of 70-75% of the work force and the
    manufacturing and services sectors accounted for only 10 and 15-20% respectively.
    There existed a growing regional disparity with few states such as Orissa, Rajasthan and Punjab witnessing an

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    increase in agricultural workforce while the states which were the parts of Madras presidency. Bombay and Bengal
    witnessed a decline in the percentage of the work force dependent on agriculture.

    INFRASTRUCTURE
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    Absence of good roads, electricity generation, health, education and communication. However, some efforts have
    been made to develop basic infra-structure like roads, railways, ports, water transport, post & telegraph by the
    British rulers. The main motive was not to provide basic amenities to the Indian people but for their colonial
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    interest.

    CONCLUSION
    By the time India won its independence, the impact of the two-century long British colonial rule was already
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    showing on all aspects of the Indian economy. The agricultural sector was already saddled with surplus labour and
    extremely low productivity. By the time India won its independence, the impact of the two-century long British
    colonial rule was already showing on all aspects of the Indian economy. The agricultural sector was already
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    saddled with surplus labour and extremely low productivity.


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