I P U C Economics
Economic Development of India
[Link] Gopal
Unit-1 DEVELOPMENT POLICIES AND EXPERIENCE (1947 to 1990)
Chapter-1 Indian Economy on the Eve of Independence
1.1 Introduction:
Prior to India’s independence, many foreigners such as Turks, French, Portugueseand
Britishers invaded Indian sub-continenton the lines of commerce and trade. Only
Britishers were able to establish their empireand the rule lasted for two centuries (15 th
August-1947). Under British colonial rule Indian economy did transform. India was a
major source of supply of raw-materials to industries in Britain.
1.2 Low level of Economic Development under the Colonial Rule:
Indian economy was and is of course basically an agrarian (village) and agricultural
country. Indian was well known for her handicrafts, village and cottage industries
and metal works. The village based economy did not support the Indian families or
the country.
Dadabhai Naoroji William Digby Findlay Shirras Prof.
[Link]
(Poverty and Un-British Rule in India- a book published in 1901 written by Dada Bhai
Naoroji)
1.3 Agricultural Sector:
India was and is basically an agricultural economy. During the British colonial
rule about 85 per cent of the India’s total population not only lived in villages and their main
occupation was agriculture and allied activities-cattle raring, sheep raring, poultry etc.
The Zamindari system: A rich farmer acted as landlord. There was tenancy
system. Government used to impose heavy taxes both on land and the produce. This gave
rise to major problems, like:
1] Absentee landlordism.
2] Exploitation of cultivators.
3] Excess cultivation of commercial crops-Indigo colour, Coffee, Tea, Rubber etc.
4] Drastic fall in the production of food crops.
5] High poverty in villages.
1.4 Industrial Sectors: India under British colonial rule could not develop a strong industrial
foundation. India was well-known for handicrafts, Village and Cottage industries. Initially
there were only Cotton and Jute textile mills in Bombay (Mumbai) and Bengal provinces.
1. Expand TISCO (1 Mark) 2. Tata Iron and Steel Company was established in the year: 1907
Tata Iron and Steel Company.
3. State the meaning of capital goods industries. [1 Mark]
Ans: Capital goods industries are those which producemachines and tools.
1.5 Foreign Trade:
Under theBritish rule India was a major exporter of food grains, raw-cotton, silk, wool,
sugar, and jute. But India was also a major importer of finished goods form Britain like
woolen cloth and consumer products. At present India exports chemicals, software etc.
1.6 Demographic Condition:
The first population census in India was conducted in the year 1881. In 1921 India
was in first stage of demographic transition.[Demography- is scientific study of
human population]. The mortality rate was high particularly the infant mortality rate
was very high-218/1000.
Occupational Structure: (what is occupational structure?) [1 Mark]
It means distribution of working population in different sectors of the economy such as
agriculture, industrial and service sectors. At present service sector is the major job
generating sector, such as Gig [Non-standard] (food& other parcel delivery) workers.
1.7 Infrastructure:
India under colonial rule saw a development in infrastructure facilities. There are two
types of infrastructure such as
a) Physical or Economic infrastructure b)Social infrastructure
Roads, Railways, Airports, Shipping yards, Educational institutions
Electricity, Post& Telegraphs, Banking and Supply of Safe-Drinking water,
Insurance Industries etc. Libraries, Parks, Hospitals etc.
i) The first railway transportation was introduced in 1850
ii) The first railway bridge linking was opened between Bombay to Thane in1854.
1.8 Conclusion:
Indian economy under British rule did not develop because of foreign interest. But
after independence India is in the path of economic development that is way India is
called as ‘a developing economy.’
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