Indian Eco. On Eve Of Independence Flashcards
Where and when was the foundation of British Empire laid in India?
it was laid by Battle of Plassey, fought in 1757
What was the main purpose of British Rule in India?
the main purpose was to use Indian economy as feeder economy for British economic development
Before the advent of British rule, what were the characteristics of Indian economy?
- prosperous economy
- agrarian economy
- well known handicraft industries
What were the main handicraft industries of India?
cotton and silk textiles, metal and precious stone works. it had reputation of fine quality material and high standards of craftmanship
Meaning of Colonialism
it refers to the system of political and social relations btwn two countries of which one is the ruler and other is its colony. ruling country has no political control over colony but determines economic policies
Describe attempts of estimation of India’s per capita and national income during British rule?
- no sincere attempt by british govt
- individual attempts made by Dadabhai Naoroji, William Digby, V.K.R.V Rao etc - inconsistent
- estimates of Dr. Rao - significant
- growth of aggregate output during first half of 20th century was less than 2%
- per capita income growth was 0.5%
Who attempted to estimate India’s national and per capita income?
Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V Rao, R.C. Desai
What was per capita and national growth in the first half of 20th century?
per capita income growth - 0.5%
national income growth - less than 2%
Condition of agricultural sector during British period
- overwhelmingly rural and agricultural
- 85% lived in villages and had occupations relating to agriculture
- country was not self sufficient in food and raw materials for industry
Main reasons for stagnation in agricultural sector
1) land settlement system
2) commercialization of agri
3) scarcity of investment
4) low level of productivity
Explain land settlement system
- zamindari system stagnated the economy
- profits went to zamindars in form of lagaan
- zamindar’s main interest-collect lagaan regardless of economic condition
- dates for depositing specific sums of lagaan to british govt was fixed
- nothing was done to improve agri condition
Explain commercialization of agriculture
- meaning- production of crops for sale in the market rather than for self consumption
- farmers were given higher price for cash crops like cotton and jute - used by british comp
- did not improve economic condition
- british rule promoted shifting of crops from food to cash crops
How did commercialization of agriculture lead to famines?
- british industrialists were in need of raw materials like cotton, jute, sugarcane
- farmers produced cash crops cuz high prices were offered
- farmers had to purchase food from shops in towns\
- fall in production of food crops led to frequent famines
Explain scarcity of investment
- india was facing scarcity of inv in terracing, flood control and drainage
- although cropping patterns changed, a large section of tenants, small farmers and sharecroppers had no resources/tech/incentive
What is sharecropping?
form of agri in which the landowner allows tenant to use the land in return for a share of the crops produced on their portion of land
What were the adverse effects of partition on agricultural sector?
- partition led to further setback
- sizeable portion of highly irrigated and fertile land went to Pakistan
- almost whole of jute producing area went to Bangladesh
- jute goods industry of India suffered
Which industry in india enjoyed world monopoly?
jute goods industry
What were the effects of British rule on industrial sector?
1) de-industrialization - decline of handicraft industry
2) adverse effects of decline of handicraft industry
3) lack of capital goods industries
4) low contribution to GDP
5) limited role of public sector
What were the primary motives behind de industrialization?
- to get raw materials from India at cheap rates to use in industries
- to sell finished products of British industries to Indian markets at higher prices
What was the main reason for decline of India’s renowned handicraft industry?
discriminatory tariff policy
What did the discriminatory tariff policy implement?
it allowed free export of raw materials from India
it allowed free import of final goods of British industry to India
heavy duty was imposed on export of Indian handicrafts
How did decline of handicraft industry affect Indian economy?
- high level of unemployment
* import of finished goods
Why did modern industries start coming up during the second half on 19th century?
initiative of private sector
Industries in second half on 19th century was confined to _________
cotton textiles and jute mills
Cotton textile mills were located in _____
western parts of India, Maharastra and Gujarat
Major breakthrough in industrial sector was ________
TISCO, Tata Iron and Steel Company, 1907, Jamshedpur (BIHAR)
What was the state of India’s foreign trade during British rule?
1) exporter of primary products and importer of finished goods
2) monopoly control of British rule
3) drain of indian wealth during British rule
_____ of India’s foreign trade was restricted to ___ while the rest was allowed to ____
more than 1/2, Britain, China Ceylon (Sri Lanka) and Persia (Iran)
What was the direct route which was established for ships to operate between India and Britain?
The Suez Canal
What is Suez Canal?
It is an artificial waterway running from north to south across Isthmus Of Suez in north eastern Egypt
When was Suez Canal opened?
1869
What is the drain of Indian wealth?
india became an exporter of raw materials and importer of finished goods, huge export surplus
How was the export surplus with India used?
- to make payments for expenses incurred by offices set up by govt in Britain
- to meet expenses of the war fought by the british
- to import invisible items
When was the first official census?
1881, operations were then carried out every 10 years
What was the year of the great divide? Why was it named so?
1921, the first stage of demographic transition was before 1921, the second started after
How was the demographic condition of India?
high birth rate and death rate very low literacy rate widespread poverty poor health facilities low life expectancy high infant mortality rate
What was the birth and death rate?
birth rate- 48 per thousand
death rate- 40 per thousand
Overall literacy rate was _____
Female literacy rate was ______
Infant Mortality rate was _______in contrast to _____in 2011
less than 16%
less than 7%
218 per thousand in contrast to 44 per thousand in 2011
What is occupational structure?
it refers to the distribution of working persons across different industries and sectors
Agricultural workforce amounted to ____ of the population
Manufacturing and service sectors accounted for _____
75%
25%
Which states witnessed a decline in dependence of workforce on agricultural sector and increae in manufacturing and service sector?
Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharastra, West Bengal
Which states saw an increase in dependence of workforce on agricultural sector?
Orissa, Rajastan and Punjab
What was the main purpose of the roads built by the British?
it was used to mobilise the army
it was also used to shift raw materials
When was railways introduced in India?
1850
How did the railways affect the structure of Indian economy?
it broke geographical and cultural barriers and promoted national integration
it enhanced commercialisation of Indian agri, which led to decline in self sufficiency of village economies
Where was the Coast Canal built?
on the Orissa coast
What was the most popular means of communication?
Why was it introduced in India?
posts and telegraphs
it was to maintain law and order
Why was railways introduced in India?
to have effective control and administration over the vast Indian territory
to earn profits through foreign trade by linking it with major ports
to make profitable investment of British funds in India
What were the positive contributions of British rule?
self sufficiency in food grain production better means of transportation check on famines shift to monetary economy effective administrative set up
How can India’s economy be described on the eve of independence?
semi-feudal, colonial, amputated, backward, depleted and stagnant amputated economy (SCABDS)
What are two aspects of Indian economy?
1) feudal system (land settlement system leading to cruel landlord-tenant relations)
2) capitalist system (modern industries led to formation of two classes, capitalist and labourers
What is a stagnant economy?
it is one which is growing at a very low rate
What is depleted economy?
it is an economy where no arrangements have been made to replace the physical assets, depreciated due to excessive use.
Indian industries has to work beyond their capacities during WW2 to _________
meet the demand of plant, machinery, equipments etc
What is meant by amputated economy?
british policy of divide and rule promoted discrimination on the basis of religion caste etc which led to partition
