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Part B: Indian Economic Development

Chapter10: IndianEconomyatthetimeofIndependenceLearning objectives

1Introduction2Lowlevelofeconomicdevelopmentunderthecolonialrule

3AgriculturalSectors

4Industrialsectors

5Foreignsectors

6Demographicconditions

7OccupationalStructures

8Infrastructures9StateofIndianeconomyontheeveofindependence

10PositivecontributionofBritishrule

1. WhatwastheconditionofagriculturesectoratthetimeofIndependence?Ans:1)Low level of agricultural productivity:-

Agriculturalproductivitybecameverylowandthisstagnationinagriculturesectorwasmainly

due to systems of land settlement that were introducedby the British Government. The

Zamindarisystem,theprofitaccuringoutoftheagriculturesectorwenttoZamindarisinsteadof

thecultivators.Thisleadtodiscouragementamongstthecultivatorstoproduceless.

2. High dependence on Monsoon:-Agriculturesectorwasmainlydependentonmonsoon.Noeffortwasevermadeunderthe

Britishruletodeveloppermanentmeansofirrigation.

3. LackofProperInput:-Lowleveloftechnology,lackofirrigationfacilityandnegligibleuseoffertilizers,added

toaggravatetheplightofthefarmersandcontributedtothedismallevelofagricultural

productivity.

Q.2WhatwastheconditionofIndustrialsectoratthetimeofIndependence?Ans:-1)DiscriminatoryTariffPolicy:-

TheBritishGovernmentallowedtarifffreeexportofrawmaterialsfromIndiaandtariff

freeimportofBritishindustrialproductsintoIndia.Butaheavydutyontheexportof

Indianhandicraftsproducts.ItleadstodecayofhandicraftsindustryinIndia.

(ii) Competitionfrommachine:-

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IndustrialrevolutioninBritaingaveastiffcompetitiontothehandicraftindustriesinIndia.

DuetolowcostandbetterqualityproductproducedbymachineforcedtheIndian

craftsmentoshutdownthehandicraftIndustryinIndia.

(iii) NewPatternsofDemand:-OwingtoBritishruleinIndia,anewclassofpeopleemergedinIndia.Thischangedthe

patternofdemandinIndiaagainsttheIndianproductsandinfavourofBritishproducts.As

aresult,theIndianIndustrytendedtoPerish

(iv) MoremarketforBritishGoods:-AnintroductionofrailwaysfacilitatedthetransportationoftheBritishproductstodifferent

partsofthecountry. Asaresult,thesizeofthemarketforthelowcostBritishproductexpandedwhileitstartedshrinkingforthehighcostIndianproducts.Thisleadtodecayof

IndustryinIndia.

Q3. WhatwastheconditionofforeigntradeundertheBritishrule?Ans1)DuetodiscriminativetariffpolicyadoptedbytheBritishGovernment,Indiabecamenet

exporterofrawmaterialsandprimaryproducts.

Ontheotherhand,itbecamenetimporteroffinishedgoodsreproducedbytheBritishIndustry.

(ii)CompositionofexportsandimportsshowedthebackwardnessofIndianeconomy.Exports

andimportswerelargelyrestrictedtoBritainonlyduetomonopolycontrolof Indiasforeign

trade.

(iii)SurplusprofitmadeandaccountofforeigntradeduringtheBritishrulewasdistributedon

administrativeandaswellasonwarexpenses.Itwasonlyusedtoincreasethepursuitsofthe

BritishGovernment.

Q4MentionthedemographicprofileduringtheBritishrule.Ans:1)HighbirthandHighdeathrateimpliedlowsurvivalrate,whichwasnearly8perthousandperannum.

2)Lifeexpectancywasaslowas32yearswhichshowsthelackofhealthcarefacilities,lackofawarenessaswellaslackofmeansforhealthcare.

3)Literacyratewasaslowas16percent,whichreflectsthesocialandeconomicbackwardness

ofthecountry.

Q5.Mentiontheconditionofoccupation structureatthetimeIndependence.Ans:-(i)Agriculturewastheprincipalsourceofoccupationandabout72.7percentofworking

populationwasengagedinagriculture.

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(ii)Only10.1%oftheworkingpopulationwereengagedinthemanufacturingsector,which

showedthebackwardnessofIndianIndustryatthetimeofIndependence.

(iii)only17.2percentoftheworkingpopulationwereengagedintheservicesector,whichalso

provedtheslowgrowthoftertiarysectoratthetimeofIndependence.

(iv)TherewasanunbalancedgrowthofIndianeconomyatthetimeofIndependence

Q6WhatwastheconditionofInfrastructureatthetimeofIndependence.Ans:1)TherewassomeinfrastructuraldevelopmentduringtheBritishintheareaoftransport

andcommunication.

2)Introductionofrailways,wasamajorbreakthroughfollowedbythedevelopmentofsome

portsandtheconstructionofsomeroads.3) But the main motive of the Britishgovernment was to foster theinterest of theBritish

GovernmentratherthantoacceleratethegrowthofIndianeconomy.

4)Therewastransitionfrombartersystemofexchangetomonetarysystemofexchange,which

facilitateddivisionoflabour&largescaleproduction.

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