SUPRIYA SINGHAL

B.Tech Chemical engineering – Institute of Chemical Technology

(Formerly U.D.C.T), Mumbai

Indian Forest Services interview – 2018 and 2019

Civil Services Examination - mains and interview

NCERT CLASS 11
ECONOMICS IN A
NUTSHELL

INDIAN ECONOMIC
DEVELOPMENT
CONTENTS
CHAPTER 1: INDIAN ECONOMY ON THE EVE OF
INDEPENDENCE

CHAPTER 2 : INDIAN ECONOMY 1950-1990

CHAPTER 3 : LIBERALISATION, PRIVATISATION AND

GLOBALISATION : AN APPRAISAL

CHAPTER 4 : POVERTY

CHAPTER 5 : HUMAN CAPITAL FORMATION IN INDIA

CONTENTS
CHAPTER 6 : RURAL DEVELOPMENT

CHAPTER 7 : EMPLOYMENT: GROWTH,

INFORMALISATION AND OTHER ISSUES

CHAPTER 8 : INFRASTRUCTURE

CHAPTER 9 : ENVIRONMENT AND SUSTAINABLE

DEVELOPMENT

CHAPTER 10 : COMPARATIVE DEVELOPMENT

EXPERIENCES OF INDIA AND ITS NEIGHBOURS
 CHAPTER 1

INDIAN ECONOMY ON THE EVE OF

INDEPENDENCE

https://indianexpress.com/
 INTRODUCTION
• India independence -1947
• Factors of underdevelopment and stagnation
• To understand present and future, important to understand
past
• The structure of India’s present day economy affected by the
British rule which lasted till 15 August 1947.
• India – raw material supplier and finished products importer
to expand Britain’s industrialization
• One way development and India’s exploitation
 TOPICS AHEAD
• Low level of economic development under the colonial rule
• Agricultural sector
• Industrial sector
• Foreign trade
• Demographic condition
• Occupational structure
• Infrastructure
ECONOMIC DEVELOPMENT UNDER THE COLONIAL RULE
INDIA BEFORE BRITISH RULE

• Sone ki chiriya (The golden bird)

• Agriculture – main source of livelihood

• Major role of handicraft industries (great demand

of products outside India) – fine quality and great
craftsmanship

• Exporter of cotton and silk textiles, metal and

precious stone works

• Daccai Muslin – Bengali cotton

 ECONOMIC DEVELOPMENT UNDER THE COLONIAL RULE
Aim of BRITISH RULE
• Protection and promotion
of the economic interests of
their home country
• Fundamental change in the
structure of the Indian
economy — Supplier and
consumer pattern changed
National income and per capita income
• Individual attempts by Dadabhai
Naoroji, William Digby, Findlay Shirras,
V.K.R.V. Rao and R.C. Desai
•Country’s growth of aggregate real
output during the 1st half of the 20th
century was < 2% coupled with a
meagre 0.5%
growth in per capita output
per yearly
AGRICULTURAL SECTOR
Although 85% of population depended on agriculture, but the sector
still experienced stagnation, low productivity
CAUSES

1. Various Land settlement systems-

Zamindari – profits not to cultivator yet no effort
to improve agriculture, rent seeking, dates ,
fixed for collection, no technology

2. Commercialization of Agriculture – cash crops

3. High dependence on monsoon

CAUSES
4. Lack of proper input

5. Lack of investment
In terracing, flood-control,
drainage and desalinization
of soil
INDUSTRIAL SECTOR
 INDUSTRIAL SECTOR
• India could not develop a sound industrial base under the
colonial rule
• Handicraft industries declined, no corresponding modern
industrial base developed
• Flawed import and export policy – concern for British
industries
• Massive unemployment
 CAUSES OF DECLINE
1. Discriminatory Tariff policy
2. Competition from machine
3. New patterns of demand- A new class of people
with changed pattern of demand
4. More market for British goods
5. Slow progress of modern industry in India
(1900s and beyond) – cotton and jute mills
(Where?)
 CAUSES OF DECLINE
• The Tata Iron and Steel Company (TISCO) was
incorporated in 1907
• A few other industries in the fields of sugar, cement,
paper etc. came up after the Second World War
• Hardly any capital goods industry (machines) to help
promote further industrialization in India
• Limited area of operation of the public sector -railways,
power generation, communications, ports etc.
FOREIGN TRADE