INDIAN ECONOMY AT THE EVE OF INDEPENDENCE Flashcards
(7 cards)
Write a short note on the main features of Indian agriculture at the eve of Independence.
A. Agriculture sector on the eve of independence:-
i. Low productivity:- Level of productivity was very low, therefore agriculture was in backward condition. Lack of technology and irrigational facilities resulted in low level of productivity. The British did not want to spend on technology. So, farmers suffered from low productivity.
ii. Lack of means of irrigation:- British government did not take initiative to develop the means of irrigation. Agriculture continued to depend upon rainfall. It showed greater degree of vulnerability. Unpredictable rainfall led to fluctuations in agriculture output.
iii. A wedge between owners of soil and tillers of soil:- Owners of the soil were different from tillers of the soil. Tillers of the soil were those who worked on the land to grow crops whereas owners of the soil were those who had land from hereditary. Owners used to enjoy output but did not bear the cost involved in the process of agricultural production. Tillers of soil were left with very less crops which were hardly enough for their survival.
iv. Small and fragmented land holdings:- At the time of independence due to subdivision, highly fertile land went to Pakistan due to partition. Subdivision of land made the task of management and supervision difficult. Efficiency and economy in agriculture could not be achieved.
Backwardness of Indian Agriculture:-
i. Land revenue system:- There were various systems of land settlement introduced by the colonial government. Zamindari system was implemented as a land settlement system. This system was first implemented in Bengal presidency area. The profit accruing out of agriculture sector went to zamindar in the form of rent instead of cultivators. They were free to collect as much rent they wanted. Those who were unable to pay, land was taken from them, and they turned to landless labourers.
ii. Commercialization of agriculture:- Farmers were forced to do commercialized agriculture which means they were forced to grow cash crops instead of food crops. These cash crops included cultivation of indigo which was required by the textile industry in Britain for dying of textile. Now, for the purpose of food they needed cash to buy it from market.
iii. Impact of partition on agriculture:- India‘s agriculture was highly affected by partition at the time of independence, because most of the fertile land went to Pakistan. It caused food crisis.
iv. Low investment in agriculture:- There was very less investment in agriculture. British spent very little on technological improvements. Some farmers started growing commercial crops instead of food crops.
Q. Critically appraise some of the shortfalls of the industrial policy pursued by the British Colonial administrations?
The policy British government followed was the policy of systematic de-industrialization. It was twofold policy that is decay in handicrafts and bleak growth of modern industry.
Decay of Handicrafts:-
i. Discriminatory tariff policy:- British required raw material for themselves as well as market for their final products. For this purpose, they target India. They used discriminatory tariff policy. This policy allowed free export of raw material from India and free import of Britain made goods to India. They placed heavy export on Indian handicrafts. It led to decline of handicrafts both in domestic as well as in international markets.
ii. Competition from machine made products:- Machine made goods from Britain were low priced which gave competition to Indian handicrafts which were costlier. Competition from Britain made goods declined the demand of handicrafts in India.
iii. New patterns of Demand:-Due to impact of British culture taste and preferences of people were shifting in favour of British products in Indian markets. This led to fall in demand for Indian made goods which were mostly based on Indian handicrafts.
iv. Disappearance of princely courts:- Before the British rule, Indian handicrafts were supported by Indian emperors, princes, Nawabs etc. which had given our handicrafts domestic and international recognition. Because of British rule, princely courts started disappearing and accordingly Indian handicrafts too disappeared.
v. Introduction of railways in India:- Advent of railways by British in India encouraged their trade all over the country. Size of the market of British goods increased at low rates. This reduced the market of Indian handicrafts.
Bleak growth of modern industry:-
i. Lopsided growth of Industries:- During the second half of 19 century, modern industry began to start in India, but progress was very slow. The development was confined to cotton and jute textiles. Iron and steel industries started to set up and first company was set up in 1907.(TISCO).
ii. Lack of capital goods industries:- There were very less capital goods industries like machines, tools , equipment’s etc. to promote further industrialization. Due to lack of capital goods industries, industrialization in India could not prosper.
iii. Lower contribution to GDP:- Due to slow progress of industries, its contribution to GDP was less. Level of overall production and income generation remained very low.
iv. Limited area of operation of public sector:- The public sector remained confined to railways, power generation, ports, communication etc. Participation of government was restricted to those areas only. They did not consider manufacturing industries etc.
Q. ‘Composition of foreign trade of any country tells us about the nature of commodities that are exported and imported.’ What can you state about the composition of foreign trade at the time of independence?
. Foreign trade on the eve of independence:-
i. Net exporter of primary products and importer of finished goods:- India became an exporter of primary products such as raw material like silk, cotton, jute etc. An importer of finished consumer goods like cotton, silk and woollen clothes in Britain. The mixture of exports and imports of Indian economy made it backward.
ii. Monopoly control:- British maintained monopoly control over India‘s exports and imports. The opening of Suez Canal has made British control over India‘s foreign trade easy. More than 50% of India‘s trade was restricted to Britain, while the remaining was allowed with few countries like China, Ceylon and Persia.
iii. Surplus trade:- India‘s foreign trade generated huge export surplus at high cost which led to drain of Indian wealth. Several essential commodities-food grains, cloths etc. were rarely available in the domestic market. Surplus generated was used to complete the expenses of British government.
Q. Give a quantitative appraisal of India’s demographic profile during the colonial period?
Demographic conditions:- Various details about the population of India were first collected through a census in 1881. Such conditions during British rule showed high death rate and high birth rate. This is a state of massive poverty.
Condition:-
i. High birth rate and Death rate:- Both these rates were high indicating poor health care and backwardness of a country.
ii. Infant mortality rate:- It is number of infants dying before reaching one year of age. Higher of this rate leads to poor health care. It was quite high-218 per thousand.
iii. Literacy rate:- No. of persons incapable to read and write. Overall was less than 16% and female literacy rate was less than 7%. It indicates social backwardness.
iv. Life expectancy:-It shows average life of person which was very low -44 years. Demographic transition:- It is the year of great divide in 1921. Before 1921, population growth was not constant.
Q. Highlight the salient features of India’s pre-independence occupational structure.
Occupational structure on the eve of independence:-
It refers to distribution of working population across primary, secondary and tertiary sectors. Primary sector:- Agriculture is the primary source of occupation. On the eve of independence about 72.7% of working population indulged in agriculture.
Secondary sector:- Only 9% of working population in India indulged in industrial sector.
Tertiary sector:- Trade and commerce includes in tertiary sector and it was on the path of development.
Regional variations:- Agriculture sector was the major sector where total workforce was engaged but still there were some regional variations. Workforce was more in Orissa and Punjab in agriculture sector as compared to Madras and Bombay.
Q. Analyse the state of roads during the British regime. Also explain the objectives of British developing the railways in India.
. Infrastructure on the eve of independence:-
i. Roads:-
Roads constructed in India during British rule. This was helpful in sending raw materials to the nearest port. There was shortage of all- weather roads to which many people who lived in rural areas were adversely affected during natural calamities.
ii. Railways:- The British introduced the railways in 1850. Indian people gained social benefits due to railways but there was huge economic loss to Indian government.
iii. Air and water transport:- The British also developed inland trade and sea lanes which proved to be uneconomical as it involve huge cost but failed to compete with railways.
iv. Communication:- British rule in India developed the modern system of communication. The first stamp was released in 1852 and first telegraph line was started in 1853. It was a very expensive system.
Q. Explain any four positive contributions made by Britishers in India.
Positive impacts of British rule in India:-
i. Commercialization of agriculture:- Encouragement to commercialized agriculture proved boon for India. Farming gradually became profitable by selling surplus produce.
ii. Development of Infrastructure:- Development of roads, railways, air and water transport was a very good start by British. Communication services also brought new growth opportunities in the country.
iii. Check on famines:- Development of transportation helped in controlling the effects of famines. As goods and services are supplied everywhere, it is required at the times of famines.
iv. Monetary system of exchange:- British rule helped in removing barter system due to its problems. They introduced money as a medium of exchange.
v. Effective administration:- They followed effective and efficient administrative system which left good work culture in India.
