India's Economic History Quiz

India's Economy Prior to Independence

• India was under British colonial rule for almost two centuries before gaining independence on 15 August 1947.
• The British colonial rule aimed to reduce India to a raw material supplier for Great Britain's rapidly expanding modern industrial base.

Economic Development under Colonial Rule

• India had an independent economy before British rule, with agriculture as the main source of livelihood and various manufacturing activities.
• The country was known for its handicraft industries in cotton, silk, metal, and precious stone works.
• The colonial rule led to a decline in India's economic development, with the public sector limited to railways, power generation, communications, and departmental undertakings.

Foreign Trade

• India was an important trading nation since ancient times, but the colonial government's restrictive policies affected the structure, composition, and volume of India's foreign trade.
• India became an exporter of primary products and an importer of finished consumer goods and capital goods, with Britain maintaining a monopoly control over India's exports and imports.
• The opening of the Suez Canal in 1869 intensified British control over India's foreign trade.

Characteristics of India's Foreign Trade

• India generated a large export surplus, but at a huge cost to the country's economy.
• The export surplus led to the drain of India's wealth and resources.

Indian Economy on the Eve of Independence

• The overall literacy level was less than 16%, with female literacy at a negligible low of about 7%.
• Public health facilities were either unavailable or inadequate, leading to high mortality rates.
• The infant mortality rate was around 218 per thousand, compared to the present rate of 33 per thousand.
• There was an increase in the share of workforce in agriculture in states like Orissa, Rajasthan, and Punjab.

Infrastructure

• The colonial regime developed basic infrastructure like railways, ports, and water transport, but primarily to serve colonial interests.
• The roads built during the colonial period were not fit for modern transport and primarily served the purpose of mobilizing the army and extracting raw materials.
• There was an acute shortage of all-weather roads in rural areas during the rainy season.

Legacy of Colonial Rule

• The colonial regime prioritized British economic interests over the development of the Indian economy and its people.
• The agricultural sector experienced stagnation and deterioration, despite being the largest source of livelihood for the Indian population.
• The colonial rule led to the collapse of India's handicraft industries without contributing to the development of a modern industrial base.
• The lack of adequate public health facilities, frequent natural calamities, and famines resulted in high mortality rates.

Test your knowledge on India's economic past, present state, and future prospects. Explore how India's economy evolved prior to independence and the factors that influenced post-independence development strategies.