◆ Introduction to Indian Economy ◆
-> Before the establishment of British rule in India, the situation here was quite good,
● This country was self-sufficient in respect of food grains
Many types of industries like small scale industries were in good condition here
● Their markets expanded far and wide.
● The country was also advanced in transportation
● Business conditions were also very good
● Before the British rule, the level of economy here was very high and there was enough balance in it.
But this process could not proceed due to the establishment of British rule, the economy collapsed and the country went backward economically.
◆ This colonial exploitation can be divided into three stages
1) First phase : - This phase was related to trading capital and colonial exploitation.
2) Second phase : - This phase was related to industrial capital and colonial exploitation.
3) Third phase : - This phase was related to Mahajani capital and colonial exploitation.
◆ Causes of Indian economy is backward
1) Traditional Agriculture
2) Large-scale illiteracy
3) Weak Infrastructure
4) Lower level of social index parameters
5) High Infant Mortality Rate
6) Large scale expulsion of Indian property
7) Destruction of handicrafts
8) Low level of national income and per capita income
9) Backward industry or service sector
10) Population growth
11) Poverty and unemployment on a large scale
12) Backward and old technology
◆ Important concepts of economy
1) backward economy
2) developing economy
3) developed economy
4) Inferiority of speed
5) vibrational economy
◆ 1947 agricultural sector at the time of independence
1) Low productivity : - The level of productivity was very low
Low productivity means / low level of production when agriculture was practiced over a large area of land.
2) High sensitivity : - Agriculture has a greater sensitivity because its dependence on rainfall is very high.
3) Small and fragmented holdings : - The holdings were small and fragmented. Most of the holdings were uneconomical with low yield at high cost.
4) The widening gap between the owner of the land and the farmer cultivating it : -A feature of agriculture during British rule was that the gap between the owner of the land and the farmers cultivating the land was constantly widening.
◆ Important factors of backwardness and stagnation of Indian agriculture during British rule
1) Land Revenue System in British Raj
2) Commercialization of agriculture
3) Old and backward technology
◆ Industrial Area at the time of Independence
1) Differential tax policy of the state : - Under this policy the export of raw materials from India without export duty and British industrial product without import duty was imported into India. But heavy duty was imposed on the export of Indian handicraft product
2) Decline of Indian handicrafts industries : - British government adopted such a policy to promote their industries, Indian handicrafts industries fell and they were completely destroyed.
3) Disappointing performance of industries : - The performance of industries was very poor at that time.
◆ Foreign trade under British rule
1) Net exporter of primary products : - India became a net exporter of raw materials and primary goods like raw silk, cotton, indigo, wool, sugar etc.
2) Excess in trade but for the benefit of the British : - At the time of independence, there was excess in trade but only it benefited the British.
3) An official control of India's foreign trade : - The British designed India's foreign trade policy in such a way that only the British benefited from it.
◆ Demographic profile during British rule
1) Birth rate and death rate :- Both the birth rate and death rate were very high, around 48 and 40 per thousand.
2) Infant mortality : - The death rate of children below one year was very high, it was about 218 per thousand.
3) Literacy rate : - Those people who can write and read were about 16%, it is also a sign of social and economic backwardness, of which the female literacy rate was only 7%
◆ Business structure at the time of independence
◆ Infrastructure at the time of independence
1) Economic Transformation : - eg Traffic, Communication, Banking, Power, Energy
2) Social change : - Development of education, health and housing facilities.
◆ Some positive aspects of British rule in India
1) Development of Traffic Facility
2) Development of ports
3) Development of post and telegraph service
