INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
Points to remember
* The sole purpose of the British colonial rule in India was to reduce the country to being a feeder economy for Great Britain’s own rapidly expanding modern industrial base.
* Conditions in the Indian economy on the eve of independence: (i) Low level of economic development : the colonial govt, never made any sincere attempt to estimate India’s national and percapita income. The estimates given by Dr VKRV. Rao growth
of GDP was only 2% while the
growth of percapita output was just 1/2 (0.5) percent.
(ii) Backward agricultural sector : Due to :–
A. Land tenure system Zamidari
system, Mahalwari system and Ryotwari
B. Forced commercialisation of Agriculture
C. Partition of the country.
(iii) Less developed Industrial sector
of Indian handicraft industry.
B. Capital good industries were lacking
C. Limited operation of public sector
D. Discriminatory tarrif policy.
(iv) Unfavourable foreign trade :
A. Net exporter of raw material and importer of finished good. B. Britain had monopoly control on foreign trade.
C. Drain of India’s wealth.
(v) Adverse demographic condition :
A. High death rate 40
B. High infant martality rate 18
C. Mass Illiteracy 83%
D. Low life expectancy 32
E. Low standard of living people
used to spend 80% to 90% of their income
on basic needs.
(vi) Under developed infrastructure :
Absence of good roads, electricity generation, health, education and communication. However some efforts have been made to develop basic infrastructure like roads, railway ports, water transport post & telegraph by the British rulars. The main motive was not to provide basic amenties to the Indian people but for their colonial interest.
(vii) More dependence on primary sector
* Largest share of work force which was 72% was engaged in agriculture. * 10% marufacturing while 18% warkforce were...
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