LESSON 1 Indian Economy on the Eve

- =
of Inde pence .

Low level of Economic Development Under

Colonial Rule .

→ Prosperous Agrarian Well Known

Economy Economy handicraft

industries
it is

India was self-Reliant zizrd Population f,

silk and cotton
and prosperous
in
Agri " '""
Textile
industry
.

was rich .

due to high standard of

CRAFTSMANSHIP .
town Kewell off ☒laattiionnaalllnneoomme
canned Beer eaappiittaallnneommee..

→ No sincere Attempt → Individual Attempt by

British Govt
by the Dadabhai Naoroji William
Digby
-

, ,

Fid lay shirras ,

v. K R V
. -
Rao

and R C
. Desai .

Results
→
conflicting .

Dr Rao 's
.

study were → country 's growth of Aggregate

Real output 24
significant
= .
.

per capita output 5

'

o
/
-

= .

per year
 AAgrrieokwrraats.ec#or
Condition of Indian
Agriculture was not at all
satisfactory .

British colonial rule

India 's under the
1- .

economy
was
overwhelming rural and agricultural in character .

857 derived livelihood

2.
Directly or
indirectly
.
.

4
3. produce was not sufficient for food raw materials .
 REASON FOR STAGNATION
system
:-
1. Land settlement

↳ zamindari -7 Collection of Lagaan by zamindari

system
.

-
-

2. commercialisation of Agriculture : -

fi production of ↳ CASH CROPS : cotton 4 Jute

crop for SALE .
- -

Low level of
Productivity
: -

3.

↳ Low level of Tech .

-1 No irrigation facilities + No fertilizer
 Industrial sector

I. If
-

industrialisation
Decline Of Handicraft Industry .

Primary Motive of British rule

→ Get Cheap Raw Material From India .

→ sell British goods at higher prices .

2. Adverse effects of decline
of Handicraft industry .

① High level of unemployment ② Import of Finished Goods .

↳ Decline ↳ Indian
of Indian handicraft
made
goods could

not withstand the foreign

resulted in unemployment .

competition .

Lack of capital Goods

3. 4. Low contribution to GDP .

Industries .

↳ low contribution
very
.

Britishers wanted Indians

for the supply of capital

of Public sector
Limited role
goods
and heavy equipments . 5 .

↳ Railways .
power generation ,
 FOREIGN TRADE
1-
Exporter of primary Products
Importer of Finished Goods

Raw silk , cotton , wool

Export ?

sugar ,
indigo , jute, etc

silk' cotton woollen clothes

Import
,
:

light machineries 2 .

Monopoly
control of
British Rule .

↳ More than half of

India 's foreign trade

were restricted to

Britain
3. Drain of Indian wealth

4
Huge export surplus
due to excess
exports

Usei import invisible items

meet War expenses

by British Govt .

expenses
 ☒ emmooggrraaphhi.cc ccoonncdlittioonn .

1st OFFICIAL Census : -

1881

of Great Divide :- 1921 → First stage of demographic

year
transition .

Birth Rate
1. High
and Death Rate

↳ 48
Birth Rate No of children born
per thousand in a
year -7
: .
.

in
Death Rate : No .

of people dying per thousand a

year
↳ 40 .
2. Extremely Low

Rate
Literacy
16
per cent
→
Overall literacy level
↳
.

Female literacy level → 7

percent .

Rate
3-
High Infant Mortality
4- No of infants dying before reaching one
Year 218 per thousand
.

of age per 1000 Live births in a

year
.

44 thousand
per
in 2011 .

4. Low life Expectancy .

↳ which
Average No of years for people
-

are expected to live -

→ 44 years
-
 Structure
⑤
eeuulpaattiioonnaal
-
.

Distribution of working persons across different industries

and sectors .

1. Pre dominance of Primary occupation : -

-

accounted for 75% workforce

Agricultural sector

2. Regional variation .

states → Tamil Nadu , Andhra Pradesh .

Kerala , Karnataka

Maharashtra and West Bengal

↳ increase in Manufacturing and service sector

in
↳ Decrease Agriculture
"

STATES LIKE ORISSA , RAJASTHAN, PUNJAB saw an increase in the share of Agriculture
workload
 Itnnfrraassttrruueltturree
1. Roads → Mainly used for Mobilising the
army
and shifting raw materials .

fi
There was a
shortage
of all weather roads .

→ British introduced in India in 1850

2. Railways .

↳
It enabled commercialisation
Railway enabled people
to undertake long distance of Indian agriculture .
3. Air and water
Transport .

Development of water

and Air was far from satisfactory .

4 . Communication

↳ Posts and Telegraphs

were the most popular
means of communication .
 ssittivveeonnttrribbutitionnoot.PBrriitti.sk Rude .

1. Self sufficiency in food grain production :

- -

commercialisation
of resulted in self -

sufficiency
Agriculture

2. Better means of Transportation :-

Development of Infrastructure .

3 .
Shift to Monetary Economy ; .

Shift from BARTER system

:
Effective administrative setup
-

4 .

Ready for Indian politicians .

 STATE OF INDIAN ECONOMY ON THE EVE

OF INDEPENDENCE .

1- . Colonial Economy
resulted They incovraged
British rule

of wealth communication of
in huge drain

Agriculture and Industri cisation

.

2. Semi -

feudal Economy

→ land settlement system Establishment of modern

&
gave birth to feudal relations Industries led to creation
of two classes

CAPITALIST 4 LABOURERS
3.
Stagnant Economy
India 's growth wasstagnant
as
country 's growth of aggregate
real output was less than 29 .

Growth in Per capita output 051

-
.

U . Backward Economy

Indian Economy was backward and underdeveloped .

5 .
Depleted Economy
4 made to replace depreciated due to
No Arrangement physical assets ,

excess use in 2nd World War .

6 . Amputated Economy .

British Discrimination
Policy of Divide And Rule always Promoted .