Indian Economy On The Eve Of Independence Flashcards
Origin of British rule
Battle of Plassey
Basic purpose of British rule
Use India as feeder economy for development of British economy.
Characteristics of Indian Economy before British rule
Prosperous, agarian, well known in handicraft industry
Effect of two fold strategy of colonial government
Transformation of India from supplier of raw materials and consumer of finished industrial products from Britain.
Colonialism
System of political and social relations between two countries in which one is ruler and other is its colony.
Prosperous Economy
India was an independent, self reliant and prosperous economy.
Agrarian Economy
Agriculture was main source of livelihood and engaged about 2/3 of total population.
Well known Handicraft industry
Handicraft products enjoyed a worldwide reputation due to fine quality of material used and high standards of craftsmanship.
Most significant estimates of per capita income was by
V.K.R.V. Rao
Agriculture sector pre British period
Not satisfactory.
85 percent of population lived in villages and derived livelihood form agriculture directly or indirectly.
Not self sufficient in food or raw materials for industry.
Reasons for stagnation in agricultural sector
Land settlement system.
Commercialisation of agriculture.
Low level of productivity.
Scarcity of investment.
Land settlement system is also known as
Zamindari system
Land settlement system
Profit from agriculture went to zamindars in form of ‘lagaan’.
Dates for depositing ‘lagaan’ to British government was fixed. Failing zamindars would lose their rights. Zamindars and colonial government did nothing to improve condition of agriculture.
Commercialization of agriculture
Production of crops for sale than for self consumption.
Low level of productivity
Low levels of technology, lack of irrigation facilities and negligence use of fertilisers.
