India was quarter of global GDP at the time British entered India while it became nearly 3% od global GDP when they left it. It so happened because British had imposed some expoloitative policies. After gaining independence, Indian politicians and intellectuals continued with majority of the British policies keeping Indians in the darkness of perpetual poverty. This is a presentation which tries to explain the relationship of British policies, its relationship with poverty and how its continuation is keeping India still the poorest nation in the world. It also tries to discuss that how educated people & intellectuals are acting as the strongest defenders of British oppressive policies.

1. The problems of India &
their reasons
Veerender Kumar

2. Problem Number-1: Poverty

3. Possible reasons: 1. Colonial Rule
See the Indian share in global GDP
has reduced from nearly quarter of
Global GDP to nearly 3% when British
left India.
It so happened because deliberate
de-industrialization of India.
But it is not the only reason. But
anyway, let us discuss it.

4. De-Industrialization of India
• India had no demand for European goods & services because of many reasons; like:
a. India had almost every product & service Indians needed; Britishers had very few things to offer
b. British Goods were very costly
c. They were of inferior quality
d. They did not match with cultural taste & preferences of people
• So, there was great resentment in England that if this trade pattern will continue then despite parts of
India being part of British colony; England will be never able to subjugate India for longer time. This
resentment was led by Mercantilists. (explore more). Following policies were implemented in India
a. Ban community level production of majority of the productions which can be potential threat to British
production systems
b. Physically dismantle the community production systems (like primitive factories)
c. Impose tariffs at least 80% or more on Indian goods imported to England to make Indian imported
goods non-competitive (because Indian goods were of better quality & extremely low cost. For example,
an Indian shirt costed Rs 100 in England then a British made shirt costed at least Rs 160 or more. A tariff
of 80% or more made Indian goods non-competitive).

5. De-Industrialization of India
d. Forcing Indian communities to produce preferably only in British factories. Adding to this, Indian
producers or traders can sell their productions only to Britishers. Britishers did not pay even the subsistence
cost. It forced extinction of majority of Indian production systems.
e. Exports from India was made very costly by imposing high taxes on exports making it almost impossible.
f. High excise duty within India so that even trade within diff parts of India became too costly.
g. Dismantling of craft guilds, production unions and production associations (called mandals, panchayats
& shrenies मण्डल, श्रेणी, पंचायत in India). These institutions took care of price, quality, standardization,
organization of market, knowledge ownership & knowledge transfer.
h. Many of the expert communities were even physically tortured & relocated so that they can
disintegrate and their knowledge gets destroyed.
i. Destroy all Indigenous knowledge & production system in India by any means.
All of the above steps (along with many which r not listed) led to rapid de-industrialization of India forcing a
large number of people to become homeless, jobless economically handicapped. The process of
dismantling traditional institutions was so fast and intense that it led to several famines as soon as East
India Company came to power. All the people who left manufacturing became a part of marginal farmers.
Even the farmers were not spared, the total tax collection from farmers & manufacturers were upto 50% or
more of their production.

6. De-Industrialization of India
Glimpse of stats
Though majority of stats are not available or are available with India House England. Currently, it has been
made a part of British India House Archives. However, many eminent people have tried to capture them.
Notable ones are:
British textile exports to India
a. R C Dutt (Economic History of India) One can see the rate at
b. Dadabhai Nairoji which Textile exports from
England to India increased
within a time span of 20
years. In 1813 a
Parliamentary Committee
was set-up to discuss the
excesses in Indian Colony.
The committee said that if
these oppressive &
discriminatory policies r not
continued then factories of
Manchester will close down
and Britain will become
R C Dutt Economic History of India Page No 257 and nearby pages importer of cheap Indian
goods.

7. De-Industrialization of India & Industrialization of Europe
• It is painful fact that history books & academics of India glorify the Industrialization of Western Europe
but it swiftly denies to mention the devsatation of industries in India.
• The British were successful in destroying majority of knowledge systems in India hence making its
inhabitants the poorest in the world.
• The bigger challenge is that “WHY DID INDIA NOT RECOVER AFTER AFTER ITS INDEPENDENCE FROM
BRITISH”. Before discussing this question further, let me introduce you to how industrialization really
happened.
X X
X X
There were competing knowledge & production systems in the world. Some of them got support & protection
while some of them got prosecution. Those who were prosecuted died out while others flourished or survived.
Indian was destroyed by British & never allowed even after independence to regain its lost opportunity.

8. Post Independence Knowledge &
Production System KPS in India
• Post Independence India continued with the British policies
• It was assumed that India needs to import KPS from West so that it can industrialize itself
• Evolution of its own KPS and associuated institutions was always resisted saying that “WHAT IS THE NEED
OF RE_INVENTING THE WHEEL”
• It was never recognized that if anyone has invented the wheel and it has led to economic prosperity &
military power for him then he will never tranfer this competence
• It is also a very important point to lunderstand that nobody can transfer or copy a competence,
everybody builds it, uniquely
• So, if India has to bring its people out of poverty then it has to improve the KPS available with people and
upgrade it to a point where it can become world class
• India needs to re-industrialize itslef like any other nation; there is no short-cut; but yes, this process will
take only few decades if efforts r put properly.

9. Knowledge & Production Systems in Free India
Discard traditional Indian Knowledge & Production Systems;
no emphasis or effort on their organization or up-gradation
Import European/Western Knowledge & Production Systems
Establish islands of Knowledge & Production Systems like IITs,
Polytechniques, Heavy Industries, Scientific terminologies
etc. Even over-emphasis on IT can be brought in this category
No social or industrial feedback loop; hence no/negligible
innovation or creation of Indian Knowledge base
Again import from West/Europe… Keep importing

10. The Important Question is WHY India
continued with the British Era policies of
Knowledge & Production Systems?
Answer is simple, discussed in next few slides.

11. Theory of Civilizations
Dharma Monotheism
 Individuals are independent & unique Ideas are universal
 Individuals have their own discovery of Ideas
 Individuals should strive to integrate with  Entire humanity has a single pathway, destiny
Cosmic Ecosystem  Nature has no or negligible role
 Asia & Africa are “uncivilized”, Europe is the
 Hence ideas can’t be copied or imposed
ultimate achievement of human civilization; so
 Hence multiple ideas can peacefully co-exist
they must be “colonized” & “civilized”
 Hence humans are integral part of nature
Yogic theory of Civilization Linear theory of Civilization
Indian nationalists including Gandhi derived their West derived their ideas of civilization
ideas of civilization. These people strongly Educated Indians, intellectuals, liberals,
supported & promoted the ideas of Swadeshi, seculars, Marxists etc. derived their ideas of
Swaraj etc. civilization from this theory.

12. Applying Theories of Civilization on India
Nationalists Educated Indians/Intellectuals
Individuals are independent and should follow their Individuals are not significant, all of them
own conscience; Similarly Nations should also develop follow the same universal path of
their own paths; especially India which has so much evolution/development; Similarly Nations also
population, resources, consumption power & eternal follow the same linear path of development
history of leading the world
India will have & must have to follow the
India under Swaraj must have its own existence European/Western footsteps as any other
nation as it is the only path
India must develop its own knowledge systems, India will copy-paste European/Western
production systems, governance structure, knowledge systems, production systems,
healthcare, education etc. governance structures, education,
healthcare etc.
Educated Indians/Liberals are on the controlling positions in media, govt &
academia; hence they have forced India to follow the Western footsteps.

13. Follow Western KPS in India: Derived from Theory of Civilization
If Nationalist view of civilization If Western view of Civilization
Traditional Knowledge & Production Systems Traditional Knowledge & Production Systems
Organize, Upgrade, Standardize Traditional Discard Traditional Knowledge & Production
Knowledge & Production Systems Systems and Import European counterparts
Disseminate it Disseminate to Disseminate Establish completely
through education industries to increase imported Knowledge new industries &
starting from their quality & & Production educational
Secondary (Basic productivity; upgrade Systems t through institutions with little
Taleem) to University them education starting or no connection
level from Diploma or with Traditional
Graduation level Knowledge &
Production Systems
Upgraded Indian Knowledge & Production
Systems No Social or industrial feedback loop

14. Betrayal & ignorance of Intellectuals & Educated people
1. Educated/Intellectuals enforce that copying the western KPS is the only way out is fanatic, racial,
discriminatory & anti-national. They do not allow indigenous KPS to evolve. I will discuss its economic
consequences later.
2. Nationalists do not say that we must cut exchanges with WESTERN KPS but they strongly say that we
need exchanges not blind following
3. Nationalists have a strong opinion that let us develop our own KPS and bring it to globally competitive
level
4. In last 65 years of independence, India has followed the ill-advices of educated/intellectuals

15. Details: How to develop our own KPS
Mapping & standardization of traditional knowledge is very essential
for making them economic & bringing people engaged in them out of
poverty. The same applies to MSMEs. They together employ more than
90% Indians. We will discuss it in greater detail in following slides.

16. Price of Any Product/Service
Subsistence Component
• Cost for Physical Labour, Rent, Raw Material, Natural
endowments (water, air, etc.)
• It contributes to nearly 25-40% cost of product
• Income margin on subsistence component is extremely
low say 5-12% in most of the sectors. It is sometimes
negative.
Knowledge Component
1. Intellectual Property Ownership
2. Standardization of product/services
3. Increased quality of output and increased productivity
of creating a product/service
• It contributes to 60-75% cost of the product
• Income margin on knowledge component is very high say
starting from 100% to any upper limit. Though it is
difficult to calculate but any new upgradation/innovation
is supposed to have minimum 800% margin (in
economics).

17. Pricing of Products & Services
Inputs in any product/service
Subsistence Component Knowledge Component
Labor, Rent, Raw Material IP Standardization Quality
Ownership Productivity
Branding, Optimization
Better bargaining, positioning
Price of Product
Empowers innovation, Defines ownership
Subsistence: Just survive
Knowledge component is missing in almost all traditional products/services and products & services of large
number of MSMEs, hence their profit margins are minimal (5-12%)
Traditional occupations & production systems are working at Subsistence level
Since overwhelming majority of Indian workforce is engaged in traditional occupations & MSMEs which are
working at subsistence level; hence they are economically & technologically handicapped

18. So, people are working but they do not get good returns because
their work doesn’t contain “Knowledge Components”.
Some painful stats:
1. 93% people are working in unorganized sector which mostly consists of MSMEs & traditional occupations
including agriculture
2. Rest 7% people are working in organized sector doesn’t mean that their work includes Knowledge Components
but yes, they have better incomes
If we want to bring people out of poverty, we need to increase the
share of Knowledge Components in their products/services.
But why has nobody done it so far? Because Intellectuals & educated people
have always opposed it. They strongly advocate that there is nothing in India
to be upgraded or improved. No knowledge in India exists which can be
organized & standardized.

19. The detailed process of creation/enrichment of Knowledge components
Process Knowledge
• Profiling
Mapping • R&D Transfer
• Codification • Skill up-gradation
• Locating over • Input-Output-
Map Process • Optimization • Transfer to
Mapping • Automation producers
• Clustering • Transfer through
Location Education
Standardization
Mapping

20. Using latest information technologies and mobilization of
sufficient resources, traditional KPS & MSMEs can be
organized & standardized within a time period of 5 years or
Traditional Knowledge & Production Systems even lesser. It can be upgraded upto globally competitive level
and MSMEs within next 5-10 years. It means that starting from where
British destroyed us, we can rebuild India in only 15 years.
Organize, Upgrade, Standardize Traditional All knowledge can be standardized in major Indian languages
Knowledge & Production Systems and disseminated in these languages so that this knowledge
reaches out to maximum people and empowering them.
Since, Indian languages r similar by their construct, it will be
Disseminate it Disseminate to not very difficult at all.
through education industries to increase
starting from their quality & We don’t need Greek or Latin based standardized knowledge;
Secondary (Basic productivity; upgrade we can even develop our own language policies for
Taleem) to University them standardization of KPS using Indian languages. It will help in
level national integration and elimination of language based
politics. Recall each major language is spoken by crores of
people which means that we have critical economic support
for every language.
Upgraded Indian Knowledge & Production
This same KPS can b extended to South & South-East Asia
Systems
because of similarities in these languages. It represents a
population of 200 crores. Economics is in our favour!!!

21. Governance in India is just
continuation of British
with slight modifications

22. To Britain Budget of Government
of Free India
money
British Governance structure which was
British
Governance structure designed for
Forced attempt to
designed for exploitation of people
Government Corruption at make funds flow
in India Political level downwards
exploitation of people
through schemes
continued
Collector Forced attempt to
/Higher Corruption at make funds flow
bureaucracy Higher bureaucracy downwards
through schemes
Lower Forced attempt to
bureaucracy Corruption at make funds flow
/Zamindaars lower bureaucracy downwards
through schemes
money money
Indian Citizens Indian Citizens

23. Governance in India
If Nationalist view of civilization is being followed If Western view of civilization is being followed
like that of Gandhis
Copy European Systems or continue British Systems
Dismantle the British Systems
Follow any Western model of Democracy or
Re-establish & develop Indian Systems like village Communism; follow their legal systems,
republics, decentralized governments, justice centralized government etc.
through consensus and reconciliation etc.
Contemporary India is nowhere near to Gandhian Contemporary India is following the footsteps
Ideas or nationalist ideas. of Europe as Intellectuals or Educated people
want.
Why do we still follow the British System because Intellectuals & educated
people want it to continue. Current system gives them a great advantage.

24. Further Scope of explaining the problems
Aspect of Nationalist or Gandhian Educated/Intellectuals Current Indian situation
Civilization
Agriculture Organic Chemical based Chemical based
Healthcare Emphasis on prevention by Emphasis on cure by impulsive Emphasis on cure by
better lifestyle & naturopathy suppression of disease impulsive suppression of
(Ayurveda, Yoga etc.) (Allopathy) disease (Allopathy)
Sports Kabaddi, Kho-kho, Kushti, Glamorous, government Cricket is being played
Polo, Martial Arts, Chess supported: Cricket, Hockey because British n
Maharajas played it
Performing Arts Hindostani, Carnatik, Folk, Filmi Music; Filmi Dance Mixture of Indian &
Classical Dances etc. western
Cultural festivities All Indian festivals All Indian festivals + Western Mixture of Indian &
festivals like Mother’s Day, Western
Valentine Day
I have not done any comprehensive comparative study on these aspects, I m just enlisting
the scope of understanding problems existing in India & their solution.

25. The Future of India as a Nation
Contemporary signals What intellectuals & educated people think?
• Trust deficit b/w people & Govt.; rising social • India has gone to dogs & nothing works
unrest across the country • India should follow Western models more
• Government & people have no real connection strongly rather than half-hearted
• Education is useless for most of the people; for • India is supposed to become a superpower
others it doesn’t make them productive nation in coming decades
• Technology & knowledge has been made “racial
entities” because one can get them only if he What politicians think?
follows particular education in a particular
language • Politicians have no consistent point of view;
• There is a cultural confusion in the country they have only their own interests & the
• Indigenous thoughts & cultures are endangered interests of their parties
• Service sector is growing at a fast pace but god
What people think?
knows what will happen with manufacturing &
agriculture • They have outsourced their job of thinking to
• Income disparity is increasing intellectuals, educated people & politicians
• Human interventions in environment is
becoming unsustainable
• …

26. What we think about the Future of Indian Civilization
What if current scenario continues What is the way out?
• India will always remain a sub-ordinate power • There is nothing called “universal” ideas
to Western Powers be it industry, military, • Difference is not always bad, difference is just
culture or science difference; they must exist for diversity. So, it is
• India will remain a developing country for the not bad if India exists as diff from West
foreseeable future • India is different from every other country, so
• India will remain in the state of confusion there is no need of blindly following their
• India will remain a consumer of knowledge & solutions for problems in our country
culture • India must have to develop its own indigenous
• India will westernize to a large extent killing its solutions for everything; there is no short-cut
own cultures, identities & knowledge • Knowledge is non-transferable, every nation has
• Indian traditions & cultural products will be to evolve its own; build its own competence
found only in museums • Until or unless people r not empowered by
• India will not be in a position to provide a knowledge, they will always remain poor.
leadership to other developing countries
There is an appeal to a large number of educated
India will always remain a poor nation because Indians & intellectuals to start questioning the
majority of its people r forcibly made “Universality of Linear Theory of Civilization”
economically & technologically handicapped.

27. It requires a critical thinking and multiple revision of the
ppt to understand its purpose & soul.
I m not against educated or Intellectual people; but
however I m against their racism (WEST IS BEST &
UNIVERSAL).
thanks
ask me questions