indian economy on the eve of independence Flashcards
(39 cards)
before the advent of british rule indias economy was characterized as?
- prosperous economy
2.agriculture economy( 2 thirds engaged) - well known handicraft industries
where did muslin originate from
bengal especially around dhaka
muslin was exported to?
europe middle east and other countires
finest variety of muslin was called______ foreigners called it _______ or __________. it was fit to be worn by ________.
malmal. malmalshahi or malmal khas. royalty
during the british rule how was indian economy
1.the britishers were concerned with protection and promotion of their own economic interest
2.their policies bought a fundamental change
3.their two fold strategy transformed india into a supplier of raw materials and consumer of final goods made in britain.
who all tried to estimate nantional income and per capita income
dadhanai naoroji, william digby, findlay shirras, v.k.r.v. rao, r.c desai
low level of national income and percapita income
- a counrty can be judged with data of naltional and per capita income.
- no sincere attemot by british
- individual attempts.(inconsistent and contradicting)
- revealed that country total growth of total production during the first half 20th century was less than 2% and 0.5% in per capita output every year.
agricultural sector during british period
- largely rural and agricultural
- 85% lived in rural areas and engaged in agriculture directly or indirectly.
3.but still was not self sufficient in food and raw material.
reasons for stagnation in agriculture sector during british rule
- land settlement system- main reason for stagnation - zamindari system.
- profit made from the agricultural sector were collected by zamindars in the form of lagaan(rent).
- main duty of zamindars were to collect lagaan irrrespective of the cultivators economic condition.
-the dates at which the lagaan were to be deposited was specified by the colonial govt. if the zamindars failed to do so they would loose their rights. - commercialization of agriculture
- the farmers offered higher price for cash crops. but did not improve economic condition as the cash crops were ultimately used by british industries. - low level of productivity
-cultivators did not have means nor incentive to invest
-britishers spent little on agricultural,technical or mass eductaion
4.scarcity of investment
- scarcity of investment in terracing, flood control, drainage
-tenants small farmer and sharecroppers did not have means nor incentive to invest
zamindari system was based on
exploitation of farmers
reason for poor state of industrial sector in india during british rule
1.de-industrialisation–decline of handicraft industries.
2.adverse effects of decline in handicraft industries
3.lack of capital good industry
4.low contribution to gdp
5.limited role of public sector
1 de-industrialisation– decline in handicraft industries
british govt systematically destroyed handicraft industry
-their primary motive was two fold
1. to get raw materials at cheap rates from india to use in british industries.
2. to sell final consumer goods made from british industries in india at higher price.
two fold policy was enforced to ensure max advantage for britain
discriminatory tariff policy
there was duty free export of raw material to britain
duty free import of finshed good from britain
heavy duty on export of handicraft goods.
(indian market full of finished goods from britain which were low priced, led to decline of indian handicrafts)
Lack of capital goods industries
During the British rule there was hardly any capital good industry to promote further industrialization
.
British rulers not pay any attention for their promotion as they always wanted Indians to be dependent on Britain for the supply of capital goods and heavy equipment
Limited role of public sector
Republic sector remain confined only to the railways power generation communication force and some other department undertakings
Industries established during the half of 19th century was mainly confined to
Cotton textile and jute mills
The cotton textile mills were mainly dominates by
Indians located in Maharashtra and Gujarat
Jute mills dominated by the foreigners were mainelly concentrated in
Bengal
What was the state of India’s foreign trade during the British rule
- exporter of primary products and importer of finished goods
- Monopoly control of British rule 3. drain of Indian wealth during British rule.
Exporter of primary production importer of finished goods
India became an exporter of primary products such as raw silk cotton jute extra and the importance of finished consumer goods like wooden clothes capital goods like light missionary etc
Monopoly control of British rule
More than half of India’s foreign trade was restricted to Britain while the rest was allowed to other countries like China style on Persian
- the opening of Suez canal served as a direct route for the ships operating between India and Britain
Very important. Drain of Indian wealth during British rule
During the British rule there was huge export surplus due to access exports. the export surplus was used in the following ways
-to meet the cost of running and office setup by the colonial government in Britain.
- to meet expenses on war fought by the British government.
-to input invisible items that is service