Indian Economy Development Policies (1947-90)
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Questions and Answers

The state of the Indian economy was analyzed from the eve of independence till after four decades of planned ______.

development

The establishment of the ______ Commission was one of the steps taken by the Government of India after independence.

Planning

Victor Alexander Vruce was the ______ of British India in 1894.

Viceroy

The two chapters in this unit provide an overview of the Indian economy from 1947 to ______.

<p>1990</p> Signup and view all the answers

An understanding of the ______ nature of the relationship between India and British colonial powers is vital for assessing economic development.

<p>exploitative</p> Signup and view all the answers

Before the advent of British rule, India had an independent ______.

<p>economy</p> Signup and view all the answers

The primary objective of the book is to familiarize readers with the basic features of the Indian economy and its ______ post-independence.

<p>development</p> Signup and view all the answers

The critical appraisal in this unit includes both the merits and ______ of planned development.

<p>limitations</p> Signup and view all the answers

The agricultural sector in India prior to independence experienced significant ______.

<p>stagnation</p> Signup and view all the answers

The interest of the zamindars was primarily to collect ______.

<p>rent</p> Signup and view all the answers

Low levels of technology and lack of ______ facilities contributed to agricultural productivity issues.

<p>irrigation</p> Signup and view all the answers

The zamindari system was particularly implemented in the then ______ Presidency.

<p>Bengal</p> Signup and view all the answers

The profit from agriculture typically went to the ______ instead of the cultivators.

<p>zamindars</p> Signup and view all the answers

Many zamindars did little to improve the condition of ______.

<p>agriculture</p> Signup and view all the answers

Revenue settlements introduced by the colonial government often had severe ______ on cultivators.

<p>effects</p> Signup and view all the answers

There was some evidence of a higher yield of cash crops due to the ______ of agriculture.

<p>commercialisation</p> Signup and view all the answers

The primary motive of the colonial government was to reduce India to the status of a mere exporter of important ______ materials.

<p>raw</p> Signup and view all the answers

The Tata Iron and Steel Company (TISCO) was incorporated in ______.

<p>1907</p> Signup and view all the answers

The jute mills dominated by foreigners were mainly concentrated in ______.

<p>Bengal</p> Signup and view all the answers

The cotton textile mills were mainly located in the western parts of ______.

<p>India</p> Signup and view all the answers

After the Second World War, a few other industries in fields such as sugar, cement, and ______ came up.

<p>paper</p> Signup and view all the answers

The capital goods industry means industries which can produce ______ tools.

<p>machine</p> Signup and view all the answers

The establishment of a capital goods industry in India was intended to promote further ______ in India.

<p>industrialization</p> Signup and view all the answers

The iron and steel industries began coming up in the beginning of the ______ century.

<p>twentieth</p> Signup and view all the answers

Consequently, the occupational structure of India, i.e., water and air-borne diseases were ______ distribution of working persons

<p>rampant</p> Signup and view all the answers

The overall mortality rate was very high and in that, the ______ sector accounted for

<p>agricultural</p> Signup and view all the answers

Telegraphs did develop. However, the real motive behind this development was not to provide ______ to the people

<p>basic amenities</p> Signup and view all the answers

Roads constructed in India prior to the advent of British rule were not fit for ______.

<p>modern transport</p> Signup and view all the answers

People mostly living in these areas suffered grievously during ______ and famines.

<p>natural calamities</p> Signup and view all the answers

Another striking aspect was the growing regional ______.

<p>variation</p> Signup and view all the answers

The largest share of workforce usually remained at a high of ______ per cent.

<p>70-75</p> Signup and view all the answers

The manufacturing and services sectors accounted for only ______ and 15-20 per cent respectively.

<p>10</p> Signup and view all the answers

These measures were far from ______ debate.

<p>satisfactory</p> Signup and view all the answers

The inland waterways, at times, also proved ______.

<p>uneconomical</p> Signup and view all the answers

The introduction of the expensive system of electric ______ in India served the purpose of maintaining law and order.

<p>telegraph</p> Signup and view all the answers

The postal services, despite serving a useful public purpose, remained all through ______.

<p>inadequate</p> Signup and view all the answers

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 ______.

<p>economy</p> Signup and view all the answers

The agricultural sector was already saddled with surplus ______ and extremely low productivity.

<p>labour</p> Signup and view all the answers

Foreign trade was oriented to feed the ______ Revolution in Britain.

<p>Industrial</p> Signup and view all the answers

Infrastructure facilities, including the famed railway network, needed ______, expansion and public orientation.

<p>upgradation</p> Signup and view all the answers

The required welfare orientation of public industrial sector was crying for _____ economic policy.

<p>active</p> Signup and view all the answers

Under the colonial dispensation, the economic policies were more concerned with British _____ interests.

<p>economic</p> Signup and view all the answers

The agricultural sector continued to experience stagnation and deterioration despite the fact that the largest section of Indian population depended on it for _____

<p>sustenance</p> Signup and view all the answers

The rule of the British government led to the collapse of India’s world-famous _____ industries.

<p>handicraft</p> Signup and view all the answers

Lack of adequate public health facilities resulted in engendering high _____ rates.

<p>mortality</p> Signup and view all the answers

Some efforts were made by the colonial regime to improve infrastructure facilities, but these efforts were spiced with _____ motives.

<p>selfish</p> Signup and view all the answers

The independent Indian government had to build on this base through _____

<p>planning</p> Signup and view all the answers

The economic policies of the colonial government were not focused on developing the economic condition of the colonised _____ and its people.

<p>country</p> Signup and view all the answers

Flashcards

Colonial Rule Impact

British rule negatively affected India's economic development. It was exploited for benefits of the British empire.

Indian Economy Pre-Independence

The state of India's economy before gaining independence in 1947. This economy was underdeveloped and stagnant.

Five Year Plans

Planned development strategies utilized by the Indian government after independence to boost the economy.

Planning Commission

An institution set up by the Indian government to plan and implement national economic development.

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Economic Development Goals

Objectives for the Indian economy established in five-year development plans.

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Underdevelopment Causes

Factors leading to India's economic backwardness before independence. Primarily stemming from colonial exploitation by the Brits.

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Pre-Independence Economy

The Indian economy before 1947. Characterized by underdevelopment and stagnation.

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Colonial Exploitation

The British Empire's use of India's resources and labor for its own benefit, hindering India's economic growth.

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Agricultural stagnation

A period of little or no growth in agricultural output.

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Zamindari system

A land settlement system where profits from agriculture went to the zamindars (landlords).

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Revenue settlement

Systems established by the British to collect land revenue from farmers.

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Low agricultural productivity

Farmers, due to factors like land settlement and technology, produced little agricultural output.

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Colonial government's role in agriculture

The British government's land policies and actions had a negative impact on Indian agriculture, favoring landlords over farmers.

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Economic condition of cultivators

The state of well-being of the farmers during British rule.

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Cash crops

Crops grown for sale, rather than for personal consumption.

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Technological limitations

Lack of advanced tools and techniques in farming, a factor for low output

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Colonial Industrial Policy

The colonial government's policy of preventing India's industrial growth, hindering the development of a sound industrial base.

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Indian Textile Mills

Textile mills, primarily owned by Indians, were located in western India (Maharashtra and Gujarat).

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Jute Mills

Jute mills, primarily owned by foreigners, were mainly centered in Bengal.

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TISCO (Tata Iron and Steel Company)

India's early iron and steel company, incorporated in 1907 at Jamshedpur.

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Post-WWII Industries

Sugar, cement, and paper industries emerged after World War II.

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Capital Goods Industry

Industries producing machinery for other industries crucial for further development.

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Industrialization Obstacle

Lack of a capital goods industry hindered India's industrial growth.

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Reasons for Tata Steel's Location

Questions about factors that influenced the location of TISCO (reasons for establishing the plant at Jamshedpur, Jharkhand).

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Occupational Structure

The distribution of working people across different industries and sectors in a country. For example, how many people work in agriculture versus manufacturing.

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India's Occupational Structure (Pre-Independence)

Before independence, India's workforce was heavily concentrated in agriculture (70-75%). Manufacturing and services sectors were much smaller.

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Why did famines occur frequently in pre-independence India?

Poor infrastructure (limited roads) and lack of all-weather transport made it difficult to reach rural areas during natural disasters or famines, leading to widespread suffering.

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What was the motive behind developing telegraphs in pre-independence India?

Telegraphs were primarily developed to serve colonial interests, not to provide basic amenities to the people.

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Roads in pre-independence India

Roads built during colonial rule were inadequate. They focused on moving soldiers and exporting raw materials, rather than connecting rural areas.

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Regional variation

Differences in economic development and occupational structures between different regions of a country. For example, some regions may have more industrial activity while others are predominantly agricultural.

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Impact of limited infrastructure

Lack of proper infrastructure can lead to difficulties in delivering essential goods and services, especially during emergencies like floods or famines. This can worsen hardship and suffering.

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Why did India's occupational structure change slowly?

The colonial system focused on extracting resources and serving its own interests, rather than promoting industrial and service sector growth, leading to limited change in the workforce distribution.

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Colonial Economic Focus

The British government in India prioritized its own economic interests over the development of the Indian economy and people.

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Impact of Colonial Policies

British policies resulted in a stagnating agricultural sector, the collapse of traditional industries, and a lack of modern industrial development.

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De-industrialisation

The British systematically destroyed India's traditional handicraft industries without replacing them with modern industry.

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Infrastructure Development

While the British improved some infrastructure, they often did so with self-serving motives, not for the benefit of India.

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Public Health

The lack of healthcare facilities and frequent famines led to widespread poverty and high death rates among Indians.

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Economy Before Independence

The Indian economy was characterized by underdevelopment, poverty, and economic stagnation due to British colonial policies.

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Independent India's Challenge

The newly independent Indian government faced the immense task of rebuilding and developing its economy.

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Inland Waterways

Water transportation routes within a country, used for cargo and passenger transport.

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Coast Canal

A canal built along the coastline for transportation, connecting different coastal areas.

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Economic Impact of Railways

Railways contributed to the development of trade and industry, but also created job opportunities and facilitated faster transportation of goods.

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British Raj's Legacy

India's economy was heavily reliant on agriculture, suffered from low productivity, and struggled with unemployment and poverty after British colonization.

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Foreign Trade Purpose

India's foreign trade during British rule was primarily geared towards supplying raw materials and agricultural goods to Britain's industries.

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Infrastructure Needs

Post-independence India faced a dire need to improve, expand, and modernize its infrastructure, including the railway network, to meet the growing needs of its economy.

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Pre-Independence Challenges

The Indian economy faced significant challenges, including widespread poverty, unemployment, and a lack of economic opportunities, due to centuries of British rule.

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Surplus Labor

More workers than available jobs, leading to low wages and unemployment.

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Study Notes

Unit I: Development Policies and Experience (1947-90)

  • This unit provides an overview of the Indian economy from independence (1947) to 1990, outlining the government's planned development policies and five-year plans.
  • The unit critically reviews the merits and limitations of planned development during this period.
  • The Indian economy's state before independence until four decades after planned development is reviewed.
  • The government's steps, such as establishing the Planning Commission, and announcing five-year plans, are examined.
  • The goals of these five-year plans and their effectiveness are evaluated.

Indian Economy on the Eve of Independence

  • The Indian economy in 1947 was significantly underdeveloped and stagnant.
  • Learners will become familiar with the state of the Indian economy in 1947.
  • The factors leading to underdevelopment and stagnation will be explored.
  • Colonial rule heavily influenced the economic structure.

Introduction (1.1)

  • India's economic development under British rule is discussed.
  • The primary objective is to familiarize students with the basic features of the Indian economy today and its development after independence.
  • The book also highlights the economic past to understand the present state.
  • India's pre-independence economic status and post-independence strategic considerations are analyzed.
  • The structure of the Indian economy was shaped fundamentally by colonial policies aimed at extracting raw materials for the British Empire, rather than fostering domestic development.

Low Level of Economic Development Under Colonial Rule (1.2)

  • Before British rule, India had its own independent economy, primarily based on agriculture.
  • Manufacturing activities—handicrafts like textiles, metalwork, and precious stone—were well-known.
  • These industries faced difficulties under British rule, reducing Indian products' competitiveness in the international market.
  • The main source of livelihood was agriculture and the economy was mostly characterized by various forms of manufacturing activities, such as textiles and traditional crafts
  • The colonial government's main objective was to extract raw materials and resources from India to support the British industrial base.

Agricultural Sector (1.3)

  • The agricultural sector played a dominant role in the pre-independence economy, employing a large portion of the population.
  • However, the sector faced stagnation under British rule, due to policies like zamindari system, low use of technology and lack of investment and irrigation.
  • Pre-independence India's agricultural prosperity is contrasted with the stagnation during the colonial period.
  • Colonial policies focussed mainly on raw materials, impacting India's productivity and farmers' well-being.

Industrial Sector (1.4)

  • During the colonial period, India's industrial sector didn't have a strong base.
  • Handicraft industries declined.
  • The country was reduced to a producer of raw materials for British industries.
  • The focus on raw materials and textiles as the initial forms of manufacturing in pre-independence India is highlighted.
  • Little industrial development occurred, and existing industries were often exploited for raw materials for the British Empire.

Foreign Trade (1.5)

  • India's foreign trade under British rule was characterized by a large export surplus of raw materials and essential commodities.
  • Primarily export of raw materials, India became heavily reliant on foreign imports for finished goods.
  • Britain had a restrictive policy on Indian commodities' export and import.
  • The British government's policies created a trade imbalance harming the Indian economy.

Demographic Condition (1.6)

  • India had a sizable rural population with a majority working in agriculture.
  • The pre-independence period was marked by low literacy rates, high infant mortality rates, and a low life expectancy compared to the present.
  • Limited public health facilities and frequent famines contributed to the high mortality and low life expectancy.
  • The data used had limitations but revealed how uneven India's population growth was.

Occupational Structure (1.7)

  • Approximately 85% of the population lived in villages.
  • The majority of the population relied on agriculture or related activities.
  • The agricultural sector dominated the pre-independence occupational structure.
  • Manufacturing contributed significantly less.

Infrastructure (1.8)

  • In pre-independence India infrastructure like railways, postal service, roads, ports were limited and not always helpful.
  • The introduction of railways had mixed results, benefiting transportation but not improving the economic situation overall.

Conclusion (1.9)

  • The impact of British colonial rule on India’s economy was significant, and the country faced considerable social and economic challenges during and after the British Raj.
  • The agricultural sector was significantly impacted, facing prolonged stagnation compared to pre-British eras
  • The agricultural sector faced stagnation, and the industrial sector was underdeveloped and limited
  • The period before independence exhibited considerable economic and social challenges for India.

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Description

This quiz explores the development policies of the Indian economy from independence in 1947 to 1990, highlighting the government's five-year plans and the outcomes of planned development. It also examines the pre-independence economic landscape and the impact of colonial rule on India's economic structure. Test your understanding of this critical period in India's economic history.

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