Indian economy on the eve of independence Part 1

COLONIAL RULE

it refer to a system between 2 countries under which one
country being the ruler and another being the colony and the ruling countries determines the economy policy of the colony economy, especially in establishing settlements or exploiting resources.

Main objectives of British rule in India

The primary objective of British Colonial rule in India was to turn India

1) As a supplier of raw material and

2) As a consumer of finished goods

On the eve of independence, India possessed low level of economic development under the colonial rule

Before colonial rule

1)Agriculture based economy: 85% population directly and indirectly depend on agricultural for employment and living.

2)Only those crops were grown that are used for self–consumption and for village artisans

3)Famous for handicraft industry

4)Enjoy extensive trade in Asia & Europe

5)Independent, self- reliant and prosperous economy. Ancient India was Called a “GOLDEN BIRD

on the eve of independence

1)STAGNANT ECONOMY:- little/ no growth

2)BACKWARD ECONOMY:- low per capita income.

3)AGRICULTURE BACKWARDNESS:- 72% people engaged here , low productivity, sustainable agriculture.

4)Industrial backwardness

5)Heavy dependency on imports

6)Poverty

7)Limited urbanization:-in 1948 only 14%people lived in urban area, lack of opportunity outside agriculture

8)Poor infrastructure:

9)Limited foreign trade: most of India’s foreign trade was with England.

Status of Indian Economy on eve of independence

u Low level of economic development

u Agricultural Sector

u Industrial Sector

u Foreign Trade

u Demographic Condition

u Occupational Structure

u Infrastructure

LOW LEVEL OF ECONOMIC DEVELOPMEN

The economic policies of the colonial government: promotion of the economic interest of their home country than the development of the Indian economy

 Transforming the country into a net supplier of raw materials and Consumer of finished industrial products from Britain.

The country's growth rate during the first half of the twentieth century was less than 2% and growth rate of per capita output was only 0.5%.

ESTIMATION OF NATIONAL INCOME DURING Colonial Government

uThe Colonial government never made sincere attempt to estimate India’s National Income and Per Capita Income. There were some individual attempts which were made to measure. They are as follows:

u– Dada Bhai Naoroji

u– William Digby

u– Findlay Shirras

u– V.K.R.V. Rao and

u– R. C. Desaolonial

Sanjay Kumar Ojha