Indian economy at the time of british rule
At the time of Independence, Indian economy was under-developed, there
was low per-capita income, poor infrastructure, illiteracy, it was mainly
dependent on agriculture and there was no industrial development, it was
dependent on imports. Apart from these Indian economy was semi feudal,
depreciated, stagnant. India suffered from capital deficiency, high population
growth, famines, unemployment, economic disparities and lots more. ndia was one of the richest and the most
flourishing nations of the world and this is evident from the past history of
the nation. India attracted many invaders in the past with its wealth. However,
after British Invasion, India suffered a massive economic downfall and it
continued even after India's Independence. Nevertheless, Indian economy is now
gaining momentum and is developing quite fast.
Low level of economic develoment
under the colonical rule india had
an independent economy before the advent of the british rule. Though agriculture
was the main source of livelihood for most people, the country’s economy was
characterized by various kinds of manufacturing activities. India was
particularly well known for its handicraft industries in the fields of cotton
and silk textiles, metal and precious stone works etc. These products enjoyed a
worldwide market based on the reputattion of the fine quality of material used
and the high standards of craftsmanship seen in all imports from india.
The economic policies pursued by the
colonical government in india were concerned more with the protection and
promotion of the economic interests of their home country than with the
development of the indian economy. Most studies did find that the countre’s
growth of aggregate real output during the first half of the twentieth century
was less than two per coupled with a meager half per cent growth per capita
output per year.
AGRICULTURAL SECTOR
India’s economy the British colonical
rule remained fundamenally agrarian- about 85 per cent of the country’s
population lived mostly in villages and derived livelihood directly or
indirectly from agriculture. However, despite being the occupation of such a
large population, the agricultural sector continued to experience stagnation
and, not infrequently, unusul deterioration. Agricultural productivity became
incrementally low though, in absolute terms, the sector shows expansion some
growth due to the expansion of the aggregate area under cultivation.
This stagnation in the agricultural
sector was caused mainly because of the various systems of land settlement that
were introduced by the colonical government.that is the introduction of middle
man to farm field. Neither the goverment nor the zamindars did nothing for the
improvement of farm field. The other reason for the back ward condition of
agriculture duing this period was low level of technology,negligible use of
chemical fertilizers and pesticieds and low irrigational fecilities agrravated
the problem.
The commercialisation of
agriculture also act as a reason for the back ward condition of the sector,
commercialisation of agriculture refers shifting of production from food grains
to cash crops or the agriculture produce is for market not for consumption.
There was some evidence of a relatively higher yield of cash crops in certain
areas of the country due to commercialization of agriclture.
INDUSTRIAL SECTOR
As in the case of agriculture, so also
in manufacturing, india could not develop a sound industrial base under the
colonical rule. Even as the country’s world famous handicraft industies
declined, no corresponding modern industrial base was allowed to come up to
take pride of place so long enjoyed by second by the former.the british did not
take a sufficient step for industrilisation of the country rather than
deindustrilise the nation. There are two motives behind this one is to
convert india as achief supplier of raw material for british factories and a
market for selling british finshed goods.
During the second half of the nineteenth
century, modern industry began to take root in india but its progress remained
very slow. Initially, this development was confined to the setting up of cotton
and jute textile mills. The large scale industy did notset up the colinoel
rule, the only large scale industry was sep in 1907 (TISCo) The growth
rate new industrial sectoor and its contribution to the Gross Domestic Product
(GDP) remained very small.the public investment in industries will reamin very
low in this period
FOREIGN TRADE
India has been an important trading
nation since ancient times. But the restrictive policies of commodity
production, trade and tariff pursued by the colonial government adversely
affected the structure, composition and volume of india’s foreign trade.
Consequently, india become an exporter
of primary products such as raw silk, cotton, wool, sugar, indigo, juste ect.
And an importer of finished consumer goods like cotton, silk and woolen clothes
and capital goods llike light machinery produced in the factorice of Britain.
Britain maintained a moopoly control over india’s exports and imports.
The most important characteristic of
india’s foreign trade throughout the colonial period was the generation of a
large export surplus,this surpuls was used for meeting was expences.
DEMOGRAPHIC CONDITION
Various details about the population of
British india were first collected through a census in 1881. Though suffering
from certain limitations, it revealed the unevenness in india’s population
growth. Subsequently, every ten years such census operations were carried out.
Before 1921, India was in the first stage of demographic transition. The second
stage of ttransition began after 1921. However , neither the total
population of india nor the rate of population growth at this stage was very
high.
The socio domographic indicaters
moves in backward direction during british rule, the literacy rate was less
than16% amog hiese the female literacy was about 7% only.the public health
fecilities are not availiable if availiable the fecilities are
adequate.therefore water bone and air bone deasise are frequient in india. The
mortalitity rate is very alarming especially in fant mortality rate is very
high in worl is about 218per thousand. The life expectancy at that time was 32
years
OCCUPATIONAL STRUCTURE
During the colonial period, the
occupational structure of india, i.e., distribution of working persons across
different industries and sectors, showed little sign of change. The
agricultural sector accounted for the largest share of workforce, which usually
remained at a high of 70- 75 per cent which the manufacturing and the services
sectors accounted for only 10 and 15-20 per cent resectively.
INFRASTRUCTURE
Under the colonial regime, basic
infrastructure such as railways, ports, water transpport, posts and telegraphs
did railways, ports, water transport, posts and telegraphs did develop.
However, the real motive bahind this development was not to provide basic
amenities to the people but to sub serve verious colonial interests. Roads
constructed in india prior to the advent of the british rule were not fit for
modern transport.
The British introduced the railways in
1850 and it is considered as one of their moste important contributions. They
did much effort to improve port especially in land water ways and
telecommunication fecilities, construction of dams etc.
