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INDIAN ECONOMY ON THE EVE OF

INDEPENDENCE
ANSWER WRITING TIP: You can use these one liners to start your Indian Economy answer. 
1. For example if question is related with foreign trade, then you can write like this - on the eve
of independence - Indian foreign trade was limited to England only. 


2. If the question is about Agriculture, you can start like this - On the eve of independence
72.7% of working population was engaged in Agriculture 


3. Writing mains is economic exercise i.e. You have to use limited resources (information)
efficiently to score maximum marks


1. Low level of Agriculture Productivity: Because of failure of land

settlement acts. Zamindari Settlement discouraged cultivators as
Zamindars enjoyed profits. 


AGRICULTURE 2. High Dependence on Monsoon: Britishers made hardly any effort to

SECTOR develop permanent means of irrigation. 


3. Lack of Proper Input: Low level of technology + lack of irrigation

facility + negligible use of fertilisers = Dismal level of Agriculture
Productivity
1. Discriminatory Tariff Policy: The British Govt followed policy of
mercantilism (We discussed in World History). British government
increased wealth of home country by encouraging exports and
discouraging imports in England. In other words, it imposed heavy
duty on Indian handicrafts products and in contrast, British industrial
goods dumped in India tariff free. 


2. Competition from Machine: Industrial revolution began in England

(We discussed in World History - Link it with World History). Goods
made from machine were cheap, quality was good and quantity was
INDUSTRIAL high, Indian craftsman failed to match quality and quantity of those
SECTOR goods. As a result Indian crafts man shut down their industries in
India. 


3. New Pattern of Demand: New class of people emerged in India. This

class developed test for British products and demand for local
products reduced to dismal level. This resulted in shut down of
Indian industries further. 


4. More Market for British Good: Railways and Road network

connected almost every nook and corner of India. Consequently,
Britishers got gave access to bigger markets.

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1. India became net exporter of raw materials and primary products. On
the other hand, it became net importer of finished goods reproduced
by the British industries. 


FOREIGN TRADE 2. Exports were mainly restricted to England because of British

monopoly 


3. Surplus profit made on foreign trade was distributed among

administrative offices and to finance war expenses.
1. Life expectancy as low as 32 years - indicates lack of health care
facilities 

DEMOGRAPHIC
2. High birth rate and high death rate implies low survival rate 

CONDITIONS
3. Literacy rate was as low as 16 percent - reflects socio-economic
backwardness of the country
1. 72.7% of working population was engaged in Agriculture 


2. Only 10.1% working population was engaged in manufacturing

sector 

OCCUPATIONAL
STRUCTURE
3. Only 17.2% working population was engaged in tertiary sector 


4. In short there was unbalanced growth in the Indian Economy on the

eve of the independence
1. Yes there was some infrastructural development in the area of
transport and communication 


2. British introduced railways, ports and roads. Though the main motive
INFRASTRUCTRE behind this development was to foster the interest of the British govt. 


3. Also there was transition from the traditional barter system of

exchange to monetary system of exchange. It facilitated division of
labour and large scale production.

LOOK HOW INDIA’S GDP RATE

DECREASED IN BRITISH ERA

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