India's Economy Before Independence

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Questions and Answers

What percentage of the workforce was employed in agriculture in India on the eve of independence?

  • 50%
  • 85%
  • 25%
  • 70% (correct)

Which characterizes India's economy just before it gained independence?

  • Service-oriented economy
  • Agrarian economy (correct)
  • Socialist economy
  • Industrial economy

Who is known as the ‘Father of Indian Railways’?

  • Jawaharlal Nehru
  • Lord Dalhousie (correct)
  • Mahatma Gandhi
  • Sardar Vallabhbhai Patel

What was the main objective of British economic policies in India?

<p>To promote British economic interests (D)</p> Signup and view all the answers

What was the condition of literacy in India in 1947?

<p>12% (D)</p> Signup and view all the answers

What was primarily exported by India on the eve of independence?

<p>Raw materials (C)</p> Signup and view all the answers

The drain of wealth theory was popularized by which individual?

<p>Dadabhai Naoroji (A)</p> Signup and view all the answers

What does the term 'Commercialization of agriculture' imply?

<p>Growing crops for trade purposes (C)</p> Signup and view all the answers

Which country was the primary destination for India's exports during British rule?

<p>Britain (D)</p> Signup and view all the answers

What was the primary goal of the British land revenue systems in India?

<p>Maximization of revenue (B)</p> Signup and view all the answers

Which type of industries saw a significant decline during British rule in India?

<p>Cottage and handicraft industries (B)</p> Signup and view all the answers

In which regions was the Ryotwari system introduced?

<p>Madras and Bombay (C)</p> Signup and view all the answers

What aspect significantly hindered India's industrialization under British rule?

<p>British trade policies (B)</p> Signup and view all the answers

The concept of 'subsistence agriculture' is best described as:

<p>Agriculture for self-consumption (A)</p> Signup and view all the answers

What was the main mode of foreign trade for India during British rule?

<p>Sea routes (D)</p> Signup and view all the answers

What was the British perspective on Indian education primarily aimed at?

<p>Creating clerks for administrative roles (B)</p> Signup and view all the answers

What was the overall impact of British colonial policies on India's economy?

<p>Created dependency on British products (B)</p> Signup and view all the answers

Which aspect of Indian society experienced the most neglect during British rule?

<p>Health services (C)</p> Signup and view all the answers

What was a significant consequence of the British policy of one-way free trade?

<p>Weakened Indian industries (A)</p> Signup and view all the answers

Which city was the starting point of the first train in India?

<p>Bombay (C)</p> Signup and view all the answers

How was the Indian economy characterized on the eve of independence?

<p>Stagnant and undeveloped (B)</p> Signup and view all the answers

What type of agriculture became predominant in India due to British influence?

<p>Commercial agriculture focused on cash crops (A)</p> Signup and view all the answers

What was a primary factor hindering industrial development in India during British rule?

<p>Inadequate investment and capital (D)</p> Signup and view all the answers

What resource was a key component of India's export earnings while under British control?

<p>Raw materials like cotton and jute (C)</p> Signup and view all the answers

What primarily led to the deindustrialization of India during the British period?

<p>Collapse of indigenous industries (B)</p> Signup and view all the answers

Which significant event did the Indigo Revolt of 1859-60 relate to?

<p>Exploitation by British planters (A)</p> Signup and view all the answers

Which demographic characteristic was true about India's population before independence?

<p>High birth rate and high death rate (B)</p> Signup and view all the answers

What was one major reason for poor health conditions in colonial India?

<p>Poor sanitation and hygiene (D)</p> Signup and view all the answers

What was the primary reason for India's poor economic conditions under British rule?

<p>Exploitation by colonial powers (B)</p> Signup and view all the answers

What was the primary purpose of the railway network developed in India during British rule?

<p>Boost British economic interests (B)</p> Signup and view all the answers

Flashcards

India's Economy on the Eve of Independence

India's economy primarily relied on agriculture, with the majority of its workforce engaged in farming.

Workforce in Agriculture

Around 70% of India's workforce was employed in agriculture before independence.

Father of Indian Railways

Lord Dalhousie, a British Governor-General, is credited with the development and expansion of the Indian railway system.

Dominant Industry in Pre-Independence India

Small-scale, home-based industries that were prevalent in India's industrial sector before independence.

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Objective of British Policies in India

British colonial policies in India were designed to benefit the British economy, often at the expense of India's development.

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Drain of Wealth Theory

Dadabhai Naoroji, a prominent Indian nationalist, argued that British rule led to a drain of wealth from India, hindering its economic progress.

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Introduction of Railways in India

The introduction of railways in India began in 1853, marking a significant step towards modernizing transportation.

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India's Exports on the Eve of Independence

India exported primarily raw materials, such as agricultural products, before independence, signifying a dependence on primary industries.

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British Land Revenue System: Objective

The British land revenue system was designed to extract maximum revenue from India, often at the expense of farmers.

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Industries Declining under British Rule

Cottage and handicraft industries, like textiles and weaving, suffered greatly during British rule due to competition from British manufactured goods.

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Ryotwari System: Location

The Ryotwari system, implemented in Madras and Bombay, aimed to collect revenue directly from individual farmers.

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India's Industrialization: Hindrance

India's industrialization was hampered by British policies that favored British industries and restricted Indian industrial growth.

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Subsistence Agriculture

Subsistence agriculture involves farming solely for self-consumption, meaning farmers grow food primarily to feed themselves and their families.

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India's Foreign Trade: Primary Route

Most of India's foreign trade under British rule was conducted through sea routes, connecting India to British markets.

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British Education: Focus

The British prioritized education that would create clerks for administrative purposes, rather than promoting a broad understanding of knowledge.

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Major Commercial Crop under British Rule

Cotton was a major commercial crop during British rule, due to demand for raw materials in British textile industries.

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British Colonial Economic Policy

The British aimed to make India a source of raw materials (like cotton, jute, spices) and a market for their manufactured goods, ensuring a flow of wealth back to Britain.

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Prioritization of Agriculture over Industry

The British prioritized the extraction of raw materials and the development of agricultural infrastructure (like plantations) to benefit British industries, neglecting Indian industrial growth.

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One-Way Free Trade

The British established a system where Indian goods faced high tariffs, while British goods entered India freely, hindering Indian industrial development.

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Railways in Colonial India

The British introduced railways to India, mainly for the transportation of raw materials from inland areas to coastal ports for export.

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Industrial Sector's Share in GDP

India's industrial sector contributed only a small percentage of its GDP by 1947, demonstrating a lack of investment and growth during British rule.

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Transformation of Indian Agriculture

The British focused on converting Indian agriculture to produce cash crops for export, leading to food insecurity and vulnerability to famines.

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Deindustrialization of India

The British policies led to a decline in the traditional Indian handicraft industry due to competition from cheaper British goods, causing widespread unemployment and poverty.

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Indigo Revolt

The Indigo Revolt (1859-1860) was a rebellion by Indian farmers against exploitative practices by British indigo planters, highlighting the discontent caused by British control.

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Health Conditions in Colonial India

The British rule resulted in poor sanitation, lack of access to medical facilities, and high birth rates combined with high death rates, leading to poor health outcomes for Indians.

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Economic Drain

The British utilized India's resources and labor for their own gain, sending profits back to Britain, resulting in a drain of wealth from India.

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India's Foreign Trade

India's foreign trade during British rule was characterized by an unfavorable balance of trade, with India exporting raw materials and importing manufactured goods, leading to a loss of economic benefit.

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Dadabhai Naoroji's Book

Dadabhai Naoroji, a prominent Indian nationalist, wrote "Poverty and Un-British Rule in India" to highlight the economic exploitation and drain of wealth from India during British rule.

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Permanent Settlement

The Permanent Settlement, introduced in Bengal, granted land ownership rights to zamindars (landlords) who were responsible for collecting taxes from peasants. This led to exploitation and revenue extraction by the landlords.

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Agriculture's Role in GDP

Agriculture contributed a significant portion of India's GDP on the eve of independence, highlighting the reliance on agriculture and the limitations of industrial development.

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Study Notes

India's Economy on the Eve of Independence

  • Predominantly Agrarian: Approximately 70% of the workforce was employed in agriculture.
  • Limited Industrialization: Primarily cottage industries, not heavy industries.
  • Low Literacy Rates: Literacy rate was around 12% in 1947.
  • Low Life Expectancy: Life expectancy was approximately 32 years.
  • Focus on Raw Materials: India's primary export was raw materials, not finished goods.
  • Economic Drain: British policies aimed at maximizing their economic interests in India, leading to a significant drain of wealth.
  • Colonial Policies: British policies focused on maximizing their economic benefit, not Indian development. They supported commercial agriculture over self-sufficiency.
  • Deindustrialization: Decline of traditional industries like handicrafts under British rule.
  • Neglect of Sectors: Education and healthcare were neglected under British rule.
  • Unfavorable Trade Balance: India had an unfavorable balance of trade under British rule.
  • Land Revenue Systems: Zamindari, Ryotwari, and Mahalwari systems were imposed by the British, primarily to collect revenue.

Key Figures and Events

  • Father of Indian Railways: Lord Dalhousie.
  • Drain of Wealth Theory: Popularized by Dadabhai Naoroji.
  • First Train in India: Ran between Bombay and Thane in 1853.
  • Introduction of Railways: Introduced in 1853, mainly for facilitating movement of raw materials.
  • Indigo Revolt: A rebellion against British exploitation of indigo farmers in 1859-1860.

Economic Indicators

  • Agricultural GDP Percentage: Around 60% of GDP was from agriculture.
  • Industrial Sector's GDP Percentage: The industrial sector contributed approximately 10% to GDP.
  • Export Focus: Raw materials like cotton, jute, and spices were primary export items

British Colonial Policies and Impact

  • **Economic Objectives:**British colonial policies aimed at serving British economic interests, not Indian development.
  • Trade Policies: One-way free trade policies benefited British industries at the expense of Indian industries.
  • Impact on Agriculture: British policies fostered commercial agriculture, but often led to food insecurity and famines.
  • Impact on Industry: British policies hindered and suppressed the growth of Indian industries by promoting British industries and using Indian resources.

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