#Economyontheveofindependence #class12 #Agriculturesector

1. Indian Economy on the Eve of
Independence
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Kishan Lal Sharma (BBA,MBA)

2.  Introduction:- First have a look at the state of India's economy prior to the country's
independence and form an idea of various development strategy.
 Origin of British Rule:- foundation of British Empire in India was laid by Battle of
Plassey, fought in 1757.
 Basic Purpose of British Rule:- Use Indian economy as a feeder economy.
They tempered the Indian economy badly.
They affected the natural as well as human resources. Finally after 200 yrs, we got
Independence from them on 15th August, 1947.
2
Kishan Lal Sharma (BBA,MBA)

3. Agricultural Sector:
Condition of agriculture was not good at the time of British Rule. Even with 85% of
country's population engaged in agriculture we are not self-sufficient in food and
raw materials for industry. Reasons for Stagnation in Agricultural Sector:
 Land Settlement System- Introduction of Zamindari System.
Profits were taken by Britishers in the form of Lagaan. If they failed to pay lagaan
they lose their rights on their lands. Zamindars did nothing to improve the
condition of agriculture.

 Commercialization of Agriculture- Commercialization
means production of crops for sale in the market rather than self use. During their
rule farmers were forced to grow cash crops, so that britishers can buy them at
cheap rates.

 Low Level of Productivity- low technology, lack of irrigation facilities
Britishers spend less on agriculture because they don't want them to flourish. iv)
Adverse Effects of Partition- Our very fertile land goes to Pakistan. Almost all our
jute industry became the part of Pakistan.
3
Kishan Lal Sharma (BBA,MBA)

4. Industrial Sector:
Poor state of Industrial sector during the British Rule:
De- Industrialization- Decline of Handicraft Industry-British govt, destroyed the
Indian handicraft industries to get cheap raw materials, and sell the finished goods at high
rates. Heavy import duties were imposed on the export of Indian handicrafts.
Adverse Effects of decline of Handicraft Industry-decline of this industry created
unemployment, import of manufactured goods from Britain.
Lack of Capital Goods Industries-due to this, there is no industries
working in India and due to this, it created unemployment. Britisher’s always wanted Indians
to be dependent on them.
Low Contribution to Gross Domestic Product (GDP) GDP(total
monetary value of all finished goods and services produced within a specific period in country's
borders) v) Limited role of Public Sector- Public sector- railways, power generation,
communications, ports etc.
4
Kishan Lal Sharma (BBA,MBA)

5. Foreign Trade:
State of India's foreign trade during British rule:
1.Exporter of Primary Products and Importer of Finished Goods
2.Exporter- raw silk, cotton, wool, sugar, jute etc.
3.Importer-cotton, silk, woolen clothes, light machinery etc.
4.Monopoly Control of British Rule- Opening of Suez Canal in 1869-direct route for the ships
operation between India and Britain.
5.Drain of Indian wealth during British Rule expenses on war fought with Britishers.
5
Kishan Lal Sharma (BBA,MBA)

6. Demographic Condition:
"Official Census- in year 1881. It revealed unevenness in India's population growth.
Year of the Great Divide- 1931 Points) High Birth Rate and Death
Rate- Birth Rate(Children born per thousand in a year), Death Rate( number of people dying
per thousand persons in a year) ii) Extremely Low Literacy Rate-female literacy was low in
comparison to male. i) Poor Health Facilities Health facilities were unavailable, if available it
was highly inadequate. Water and air borne diseases were spreading highly
High Infant Mortality Rate-Infant mortality means number of infants
Mortality rate before reaching one year of age per 1000 live births in a year.
Low Life Expectancy- means average number of years for which people are
expected to life.
Widespread Poverty- standard of living was very low. Latest Data :-
i) Birth Rate 17592,
ii) Death Rate-7.309,
iii) Male Literacy 80.95%,
iv) Female Literacy-62.84%,
v) Infant Mortality- 29.848,
vi) Life expectancy-70 years
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Kishan Lal Sharma (BBA,MBA)

7. Occupational Structure:
distribution of working persons across different industries and sectors.
Time of British Rule:-
i) Predominance of Primary Occupation
ii) Regional Variation
7
Kishan Lal Sharma (BBA,MBA)

8. Infrastructure
State of infrastructure was very bad during British rule. They develop this but their motive is
their own development.
i) Roads- they construct roads because of their own motive of shifting raw materials.
ii) Railways- introduce railway-1850. Promote national integration. Commercialization of
agriculture.
iii) Air and Water Transport
iv) Communication- posts and telegraphs. Electric telegraph was expensive but don't
served any purpose of maintaining law and order.
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Kishan Lal Sharma (BBA,MBA)

9. Reasons for Infrastructural
Development:
They develop infrastructure not for Indians but for their own motive.
i) Roads- raw materials from India to other countries.
ii) Railways-effective control of India, foreign trade, British funds in India.
iii) Electric Telegraph- to maintain law and order.
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Kishan Lal Sharma (BBA,MBA)

10. State of Indian Economy on the Eve of
Independence:
1. Colonial Economy- supply of raw materials, commercialization of agriculture,
transform into British Colony.
2. Semi-Feudal Economy-landlord-tenant relations, high rate of lagaan, laborers,
3. Stagnant Economy-very low per capita income. iv) Backward Economy- low
level of productivity, low per capita income, traditional methods of agriculture,
high birth and death rate, mass illiteracy.
4. Depleted Economy-no arrangements have been made to replace the physical
assets, depreciated due to excessive use.
5. Amputated Economy-divide and rule policy- India and Pakistan. Problem of
rehabilitation of large number of refugees from Pak.. shortage of raw material as
our fertile land went to Pak.
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Kishan Lal Sharma (BBA,MBA)

11. Conclusion:
i) Constant per capita income over a long period
ii) Increasing dependence of population on agriculture
iii) The Zamindari System
iv) Traditional methods of cultivation
v) High-frequency of famines vi) Destruction of Indian Handicrafts
vii) Inadequate industrialization
Positive Effects or contributions of British Rule:
i) Self-Sufficiency in food grain production
ii) Better means of transportation
iii) Check on Famines
iv) Shift to Monetary Economy
v) Effective administrative setup
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Kishan Lal Sharma (BBA,MBA)

12. Thank You !
12
Kishan Lal Sharma (BBA,MBA)