PUBLIC POLICY AND POVERTY

ERADICATION IN INDIA
LECTURE SERIES-01
ARRIVAL OF POVRTY, AN ERA UNDER BRITISH RAJ
 THE BEGINNING OF AN ERA OF POVERTY IN INDIA

1. THE CONDITION OF INDIA AND HER PEOPLE BEFORE THE

BEGNINING OF BRITISH ERA

2. DESCTRUCTION OF INDIA ECONOMY ( ARRIVAL OF POVERTY)

That is to say, HOW INDIAN TRANSFORMS FROM , ONE OF THE

RICHEST NATION OF WORLD TO ONE OF THE POOREST NATION
ROBERT CLIVE, the chief architect who laid the foundation of British empire in
India, visiting Murshidabad IN 1759, RECKONED THAT THE ANCIENT
CAPITAL OF BENGAL AS EQUAL IN EXTENT, POPULATION AND
WEALTH TO THE LONDON OF HIS TIME, WITH PALACES FAR
GREATER THAN THOSE OF EUROPE, AND MEN RICHER THAN ANY
INDIVIDUAL IN LONDON".
INDIA WAS A COUNTRY OF INEXHUSTIBLE RICHES.
After the British rule, the name India was made synonymous to poverty, hunger and

disease -- a country unable to feed its own.

This change was not accidental, but an effect of deliberate British policies.

In essence, India was impoverished first by plunder and tyranny, and then by

unfair trade practices and later by economic exploitation.

This resulted in its traditional economy being ruined, its social structure

being turned upside down, and along the way.

Paul Kennedy in his 'The Rise and Fall of Great Powers' gives statistics on the India's

manufacturing clout in 1750 CE and 1800 CE. In 1750, India's relative share of entire

World's manufacturing output was 24.5% , i.e. higher than entire Europe's output of
23.2 % which included UK (a mere 1.9 %) , France, Germany, Habsburg Empire,
Italian states, and Russia.
Table - Relative shares of World Manufacturing Output 1750 - 1900 CE (19)
( Percent of total World Output)

1750 1800 1830 1860 1880 1900

India 24.5% 19.7% 17.6% 8.6% 2.8% 1.7%

United Kingdom 1.9% 4.3% 9.5% 19.9% 22.9% 18.5%
% Area of India under <3 40 85 100 100 100

British domination (*)

* Includes princely states under British suzerainty

BY THE YEAR 1900, INDIA HAD BECOME SYNONYMOUS WITH

POVERTY, ITS EXPORTS ACCOUNTED FOR MERE 1.7% OF THE TOTAL

WORLD TRADE, AND ... MORE THAN 30 MILLION PEOPLE (MORE THAN 10

PERCENT OF INDIA’S POPULATION) DIED OF STARVATION IN THE 82 YEARS

OF BRITISH RULE.
Dr. Shashi Tharoor in ‘An Era of Darkness’ has mentioned following things:-

1. “THE BRITISH LEFT A SOCIETY WITH 16% LITERACY, A LIFE

EXPECTANCY OF 27 AND OVER 90% LIVING BELOW THE POVERTY
LINE”.

2. The simple truth is that British seized one of the richest countries in the world and
over 200 years of colonial rule, reduced it to one of the poorest counties in the
world.

3. India was governed for the benefit of Britain.

4.------ DE- INDUSTRIALISATION OF INDIA------

Britain’s Industrial Revolution was built on the de- industrialisation of India.

Destruction of Indian textiles and replacement by manufacturing in England, using

Indian raw material and exporting the finished products back to India and rest of the
world.

How ?
Þ Britain’s response was to cut off the thumbs of Bengali weavers

Þ Breaks their looms

Þ Impose duties and tariffs on Indian cloth,

Continue......
Þ Flooding India and world with cheaper fabric from the new satanic steam mills of
Britain.

Consequences?
Weaver became beggars, manufacturing collapsed. So instead of a great exporter of
finished products, India became importer.

5. They took “LOOT” in their dictionary as they did in India.

6. Great Bengal Famine of 1943 (4.3 million died).

My personal views---India should approach to ICJ for the compensation and it should
be distributed to poor family.

There is a statue in London to the animals who served in WW-II but none to millions of
Indian soldiers who fought for Britain in two world wars or the 170000 who died for
Britain in this process.
Dadabhai Naoroji

Þ Known as Grand Old Man of India

Þ His Book--- Poverty and Un-British Rule in India

Þ He was the first economic thinker who provided the pattern of economic
thought for modern India.
Þ First Indian to calculate per-capita and National Income.

(1867-1870....20/34)
 Dadabhai Naoroji has stated following points in his book, these are:-

1. Growing disparities of Income----------The high and middle classes get a larger

share, while the poor masses did not enough for their basic necessaries.

Two class exists-------One the prosperous and the other poor......The prosperous
Indian was the Indian of the British and the foreigners while the poor Indian was
the India of the Indians.

2. British Taxation Policy-----In England taxes constituted 8% of the income but in

India it was about 15%.

3. In case of railway, he argues that the entire benefit was enjoyed by the Britishers,
and the burden of foreign debts was borne by India.
4. So, he suggested the military expenditure should be limited and England should
pay her share for the maintenance of British Army in India and for other military
services.
Drain Theory of Naroji
Þ He developed this theory to explain the condition of poverty in India.

Þ India had the costliest administration in the world, under the British rule.

Þ It ruined the Indian Economy.

Þ The Drain of Wealth took place in several ways:-

(1) Large payment were made by the European Officials of their savings in India.

(2) Large payment were made in the forms of salaries and pensions.

(3) India has to pay for Govt. Expenditure in England also.

(4) Non-officials Europeans made payment from their business profits in India.

The money which had gone out of India to England came back as British
Capital and foreigners had monopolized trade and industry.

(5) Indians and Englishmen were not equally paid for equal work.

(6) Destroyed internal trade of the country.

Sources of my PPP
 Taking Revenge Upon History by Dr. Shashi Tharoor (An Article)

 An Era of Darkness by Dr. Shashi Tharoor (Book)

 Poverty and Un-British Rule In India by Dadabhai Naoroji (Book)

 How the British Ruined Indiaby Dr. V.V. Bedekar, V.Y.Sardesai (Book)

 Oxfam Report

 www.google.com

 Ideas of my mentor-cum-subject teacher, Prof. Dr. S.N. Singh

Copyright of
Master Abhishek Anand

Prepared under the guidance of

Prof. (Dr.) S.N. Singh Sir

Thanking You All!!!! (Coming Soon!)