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Questions and Answers
What was the growth rate of India's aggregate real output during the first half of the twentieth century as per most estimates?
What was the growth rate of India's aggregate real output during the first half of the twentieth century as per most estimates?
In 1947-48, what was the per capita income in India?
In 1947-48, what was the per capita income in India?
What percentage of the working population in India was engaged in agriculture?
What percentage of the working population in India was engaged in agriculture?
What was a major factor contributing to poverty in India before independence?
What was a major factor contributing to poverty in India before independence?
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What percentage of the Indian population lived in urban areas at the time of independence?
What percentage of the Indian population lived in urban areas at the time of independence?
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Why was the Indian economy described as a semi-feudal economy on the eve of independence?
Why was the Indian economy described as a semi-feudal economy on the eve of independence?
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What impact did the British rule have on the Indian economy?
What impact did the British rule have on the Indian economy?
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What was the primary focus of the British in exploiting the Indian economy's agricultural sector?
What was the primary focus of the British in exploiting the Indian economy's agricultural sector?
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How did the British rule affect India's industrial sector?
How did the British rule affect India's industrial sector?
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What strategy did the British employ to promote supplies to their industry?
What strategy did the British employ to promote supplies to their industry?
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Who were some notable individuals mentioned in the text who tried to estimate India's national and per capita income?
Who were some notable individuals mentioned in the text who tried to estimate India's national and per capita income?
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On the eve of independence, how would you describe the Indian economy based on the information provided?
On the eve of independence, how would you describe the Indian economy based on the information provided?
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Study Notes
Impact of British Rule on Indian Economy
- The British rule marked the beginning of systematic exploitation of the Indian economy.
- The agricultural sector was exploited as a source of revenue.
- The industrial sector was destroyed by exploiting the domestic market for British products.
Features of Indian Economy on the Eve of Independence
- Stagnant Economy: The Indian economy showed little or no growth in income, with a growth rate of less than 2% and per capita output per year of 0.5%.
- The standard of living was miserably low, with epidemics and famines recurring.
- The British government never attempted to estimate India's national and per capita income.
Backward Economy
- Low Per Capita Income: In 1947-48, the per capita income in India was just 230.
- The bulk of the population was very poor, without sufficient food, clothing, and shelter.
- Widespread unemployment, caused by the destruction of handicraft industries, contributed to poverty.
Dominance of Agriculture
- Agricultural Sector: Nearly 72% of the country's working population was engaged in agriculture.
- The contribution of agriculture to GDP was only 50%, indicating the backwardness of this sector.
- The sector suffered from low productivity, leading to low contribution to GDP.
Industrialisation
- Destruction of Handicrafts: Prior to the British rule, India's industrial sector was well-known for handicrafts, but it was systematically destroyed by discriminatory British policies.
- By the time of independence, small-scale and cottage industries were almost ruined.
- Heavy industry showed a bleak growth, and the country relied heavily on imports from Britain for capital goods requirements.
Dependence on Imports
- Heavy Dependence: The country was heavily dependent on imports, particularly for machinery and related equipment of production.
- The armed forces also depended heavily on foreign imports for most of the defence equipment.
- Several consumer goods, such as sewing machines, medicines, kerosene oil, bicycles, etc., were imported from abroad.
Urbanisation
- Limited Urbanisation: At the time of independence, the bulk of the population lived in villages.
- In 1948, only 14% of the population lived in urban areas, while 86% lived in rural areas.
- Rural population lacked opportunities outside agriculture, compounding their poverty.
Semi-feudal Economy
- Mixed Economy: On the eve of independence, the Indian economy was a mixed economy or a semi-feudal economy, with a mixture of feudalistic and capitalist modes of production.
- Feudalistic mode of production leads to low productivity, contributing to backwardness.
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Description
Test your knowledge on the systematic exploitation of the Indian economy under the British rule, including the impact on the agricultural and industrial sectors. Learn about the policies that encouraged exports of raw materials and imports of British goods.
