The Indian economy on the eve of independence was characterized by colonial exploitation that left it backward, depleted, and stagnant. The British pursued policies aimed at transforming India into a supplier of raw materials and consumer of British manufactured goods. This led to de-industrialization, poor development of the agricultural sector, and high unemployment. While infrastructure like railroads and communications improved, the overall economic development of India was not a priority and it remained a semi-feudal, colonial economy in dire need of reform.

1. INDIAN
ECONOMIC
DEVELOPMENT
By Priyanka Chhabra

2. INDIAN ECONOMY ON
THE EVE OF INDEPENDENCEBy Priyanka Chhabra
By Priyanka Chhabra

3. Topics to be covered:
• Level of economic development
• Before British Rule
• During British Rule
• Agricultural Sector
• Industrial Sector
• Foreign Trade
• Demographic Condition
• Occupational Structure
• Infrastructure
• Positive Contributions of British Rule
By Priyanka Chhabra
By Priyanka Chhabra

4. INTRODUCTION
• The foundation of British Empire in India was laid by Battle of Plassey, fought in
1757, where East India Company got victory over the Nawab of Bengal and ruled India
for 200 years.
• They wanted to use Indian Economy as feeder economy for their development.
By Priyanka Chhabra
By Priyanka Chhabra

5. LEVEL OF ECONOMIC DEVELOPMENT
BEFORE BRITISH RULE
• Agrarian yet a prosperous economy
• Known for its handicrafts which gained prosperity worldwide
because of the fine quality of raw material used and high
standard of craftsmanship
By Priyanka Chhabra
By Priyanka Chhabra

6. LEVEL OF ECONOMIC DEVELOPMENT
DURING BRITISH RULE
• The economic policies pursued were more concerned with the
development and protection of British Government than India
• They adopted the policy of:
• Transforming India into a net supplier of raw material; and
• Consumer of British manufactured Finished goods
By Priyanka Chhabra
By Priyanka Chhabra

7. COLONIALISM
It is a system of
• political and social relations between two countries
• where one is ruler (Britain) and the other is its colony (India)
Here the ruling country exploits its colony economically
By Priyanka Chhabra
By Priyanka Chhabra

8. AGRICULTURAL SECTOR
The agricultural sector under British Rule experienced stagnation
and deterioration
Bollywood Movie Examples
By Priyanka Chhabra
By Priyanka Chhabra

9. By Priyanka Chhabra
By Priyanka Chhabra

10. Low Level of Productivity and Scarcity of Investment
• Low level of technology
• Lack of irrigation facilities
• Negligible use of fertilizers
By Priyanka Chhabra
By Priyanka Chhabra

11. INDUSTRIAL SECTOR
• Though 85% of India’s population derived their livelihood directly
or indirectly from agriculture only, still India was well known for
its handicrafts in international market.
• Following are the reasons for poor state of Industrial sector:
• De-industrialization i.e. Decline of Handicraft industries
• To get raw material from India at cheap rates
• To sell British finished goods in Indian market
• Adverse effects of decline of Handicraft industry
• High level of Unemployment
• Import of Finished Goods
• Lack of Capital Good Industry
• Low Contribution to GDP
• Limited role of Public Sector
By Priyanka Chhabra
By Priyanka Chhabra

12. FOREIGN TRADE
By Priyanka Chhabra
By Priyanka Chhabra

13. • Reduced the cost of
transportation
• Made easy access to
Indian market
• Direct trade route
between Britain and India
• One of the most
important waterways in
the world
SUEZ CANAL, 1869
By Priyanka Chhabra
By Priyanka Chhabra

14. DEMOGRAPHIC CONDITION
High Birth Rate and Death Rate
Extremely low Literacy level
Poor Health Facilities
High Infant Mortality Rate
Low Life Expectancy
Widespread Poverty
By Priyanka Chhabra
By Priyanka Chhabra

15. India has more than 50% of its population below the
age of 25 and more than 65% below the age of 35. It is
expected that, in 2020, the average age of
an Indian will be 29 years, compared to 37 for China
and 48 for Japan;
Birth rate: 18.2 births/1,000 population (2020)
Death rate: 7.3 deaths/1,000 population (2020)
Fertility rate: 2.35 children born/woman (2020)
By Priyanka Chhabra
By Priyanka Chhabra

16. OCCUPATIONAL STRUCTURE
By Priyanka Chhabra
By Priyanka Chhabra

17. INFRASTRUCTURE
Roads
• To mobilize
army and
shift raw
material
• Acute
shortage of
all weather
roads
Railways
• Came in 1850
• Broke
geographical
and cultural
barriers
• Enhanced
commercializati
on of Indian
agriculture
Air and
Water
Transport
• It was
uneconomical
• Failed to
compete with
railways
Communic
ation
• Introduction
of posts and
telegraph
• Useful yet
inadequate
By Priyanka Chhabra
By Priyanka Chhabra

18. POSITIVE CONTRIBUTION OF BRITISHERS
• Self – sufficiency in Food grain production
• Better means of transportation
• Check on Famines
• Shift to monetary Economy
• Effective administrative setup
By Priyanka Chhabra
By Priyanka Chhabra

19. STATE OF INDIAN ECONOMY ON THE EVE OF
INDEPENDENCE
Backward
Economy
Colonial Economy
Depleted
Economy
Semi-feudal
Economy
Amputated
Economy
Stagnant Economy
By Priyanka Chhabra
By Priyanka Chhabra

20. By Priyanka Chhabra
By Priyanka Chhabra