How much India suffered before the Independence?
- Colonial Exploitation of the agriculture sector - Agriculture was exploited through the ZAMINDARI system of land revenue.
- ZAMINDARS were called owners of the soil.
- The ZAMINDARS, Spent their revenue income for luxuries of life. Not single money invest in agriculture.
Characteristics - # Low Production and Productivity -
Production refers to total output,
while productivity refers to the output
Per hectare of land.
Productivity ( kg per hectare)
In 1947 660kg wheat &
665kg rice .
In 2018 3,408kg wheat &
2,665kg rice .
Production ( in lakh tonnes )
In 1946 64lakh wheat &
220lakh rice ,
In 2018 991lakh wheat &
1,156lakh rice .
# Dominance of subsistence Farming
Subsistence farming is a form of
Farming in which the crops are
Produced to provide for
the basic needs of the family.
# Small and Fragmented Holding -
Landholding was both small as
as well as fragmented. Most
landholdings were uneconomic
yielding low output at a high cost.
2. Colonial Exploitation of Industrial Sector - Previous British rule, the industrial sector in India was well known for its handicrafts.
Before the Independence Indian
Handicrafts enjoyed a worldwide
Reputation for Variety & Quality.
But Due to the British government
destroyed in the following ways -
- Heavy-duty on their export applies by the British government.
- Duty-free import of British goods in the Indian markets through the British government.
Characteristics -
# Discriminatory Tariff Policy of the
State -
The British rule in India coincided
with the industrial revolution in
British Tariff - Free Export
of raw materials From India &
Tariff - free import of
British industrial products
Into India.
# Competition from Machine
made Products -
Machine-made products from
Britain were low-cost products
gave a stiff competition to the
handicraft products in India.
# Introduction of Railways in India -
With the introduction of railways
Size of the market for the low
Cost British products tended to
expand.
3. Colonial Exploitation of International Trade - India's international trade was exploited through discriminatory tariff policy.
- Duty-free export of Indian raw materials to fulfill the industry needs in British.
- Duty-free import of British goods to expand demand for the British goods in the Indian markets.
Characteristics -
# Net Exporter of Primary Products
and Importer of finished Goods -
Owing to colonial Exploitation of
the Indian economy, India became
net exporter of raw materials and
primary products. ( like - raw silk
Cotton, wool, jute, etc.)
# Monopoly Control of Indian
Foreign Trade -
On the time of British rule, export
& import of the country came
Under monopoly control of the
British government.
# Surplus Trade but only to Benefit
the British-
Surprisingly, at the time of the
British regime, our exports
exceeded our imports. It
implied a surplus of balanced
of the trade.
Features of Indian Economy Before the Independence -
- Stable Economy - A stable economy shows little or no growth in income.
Between 1860-1925 , growth
rate per
Capital income 0.5% per annum &
Between 1925-1950 , it was 0.1%
per annum .
Epidemic and Famines recurring.
Phenomena.
- Agriculture Backwardness - Approx 72% working population, working in the agriculture sector. But only contribution GDP 50%.
Productivity was extremely low. Per Hectare 660kg
Wheat & 665kg rice.
- Industrial Backwardness - Scarcity of the basic and heavy industries. The Indian industry was dependent upon imports from Britain. So production of the machine was almost negligible.
- Poor Infrastructure - Communication and transport, generation of power were deficient. In 1948 power generation capacity was merely 2,100 MW, length of railways lines was 53,596 Km, Pucca Road coverage 155 thousand Km only.
- Heavy Dependence on Import - The county had to depend on imports for machinery and other production equipment. Armed forces also depend heavily on imports of defense equipment.
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