CHAPTER 1: INDIA ON THE EVE ON
INDEPENDENCE
INTRODUCTION [ ORIGIN OF BRITISH RULE]:
The British rule over India changed the course of history in
India. The foundation of British Empire in India was laid by
the Battle of Plassey, fought in 1757.
Finally, after 200 years of British rule, India gained
independence from them on 15th August,1947.
CHARACTERISTICS OF INDIAN ECONOMY Under
Colonial Rule:
Before, the advent of British rule, Indian economy was
characterised by the following features –
PROSPEROUS ECONOMY: Independent, Self
Reliant and Well Off.
AGRARIAN ECONOMY: Main source of live, 2/3
population was engaged.
WELL KNOWN HANDICRAFT
INDUSTRY: Fields of cotton and silk
textiles.
However, during the British rule, the economic policies
were concerned more with the protection and promotion
of their economic interests. Their policies such as Two-
fold strategy transformed the country into a supplier of
raw materials and consumer of finished industrial
products from Britain which bought a fundamental
change.
LOW LEVEL OF NATIONAL AND PER CAPITA
INCOME:
, No attempt was made by British Government to
estimate India’s national and per capita income.
Some experts like Dadabhai Naoroji, William Digby,
Findlay Shirras, V.K.R.V Rao and R.C Desai made
attempts.
However, the significant one was of Dr. V.K.R.V Rao.
His studies revealed that during the first half of the
twentieth century the country’s growth of
aggregate real output was less than 2% and only
0.5% growth in per capita output per year.
SECTORS OF ECONOMY
Land settlement
system,
REASON commercialisation
AGRICULTUR FOR of agriculture,
AL SECTOR STAGNATIO
N:
low level of
productivity,
scarcity of
investment
De- .
industrialisation:
decline of
handicraft
INDUSTRIAL POOR STATE
industries,
Adverse effects
SECTOR OF INDIA:
of decline in
handicraft
industry, Lack of
capital goods
Exporter of
industries
primary products
and importer of
FOREIGN STATE OF finished goods,
monopoly control
TRADE INDIA:
of British rule,
Drain of Indian
wealth during
British rule.
AGRICULTURAL SECTOR:
, Nearly 85% of the country’s population lived mostly
in villages and derived livelihood, directly or
indirectly from agriculture.
Large ratio of population
Zamindars were recognised
engaged in agriculture, still as owners and were given
not self-sufficient in food and the rights to collect the rent
in the form of ‘LAGAAN’.
raw materials.
REASONS:
1. LAND SETTLEMENT SYSTEM:
Most important reason was the introduction of “zamindari
system”.
Profits accuring out of agricultural sector went to the
zamindars regardless of the economic condition of the
cultivator.
The dates for depositing specified sums of lagaan were fixed
with British government, failing to which the zamindars would
lose their rights.
Nothing was done to improve the condition of agriculture.
Resulted in
famines in
India
2. COMMERCIALISATION OF AGRICULTURE:
Production of
crops for sale in
INDEPENDENCE
INTRODUCTION [ ORIGIN OF BRITISH RULE]:
The British rule over India changed the course of history in
India. The foundation of British Empire in India was laid by
the Battle of Plassey, fought in 1757.
Finally, after 200 years of British rule, India gained
independence from them on 15th August,1947.
CHARACTERISTICS OF INDIAN ECONOMY Under
Colonial Rule:
Before, the advent of British rule, Indian economy was
characterised by the following features –
PROSPEROUS ECONOMY: Independent, Self
Reliant and Well Off.
AGRARIAN ECONOMY: Main source of live, 2/3
population was engaged.
WELL KNOWN HANDICRAFT
INDUSTRY: Fields of cotton and silk
textiles.
However, during the British rule, the economic policies
were concerned more with the protection and promotion
of their economic interests. Their policies such as Two-
fold strategy transformed the country into a supplier of
raw materials and consumer of finished industrial
products from Britain which bought a fundamental
change.
LOW LEVEL OF NATIONAL AND PER CAPITA
INCOME:
, No attempt was made by British Government to
estimate India’s national and per capita income.
Some experts like Dadabhai Naoroji, William Digby,
Findlay Shirras, V.K.R.V Rao and R.C Desai made
attempts.
However, the significant one was of Dr. V.K.R.V Rao.
His studies revealed that during the first half of the
twentieth century the country’s growth of
aggregate real output was less than 2% and only
0.5% growth in per capita output per year.
SECTORS OF ECONOMY
Land settlement
system,
REASON commercialisation
AGRICULTUR FOR of agriculture,
AL SECTOR STAGNATIO
N:
low level of
productivity,
scarcity of
investment
De- .
industrialisation:
decline of
handicraft
INDUSTRIAL POOR STATE
industries,
Adverse effects
SECTOR OF INDIA:
of decline in
handicraft
industry, Lack of
capital goods
Exporter of
industries
primary products
and importer of
FOREIGN STATE OF finished goods,
monopoly control
TRADE INDIA:
of British rule,
Drain of Indian
wealth during
British rule.
AGRICULTURAL SECTOR:
, Nearly 85% of the country’s population lived mostly
in villages and derived livelihood, directly or
indirectly from agriculture.
Large ratio of population
Zamindars were recognised
engaged in agriculture, still as owners and were given
not self-sufficient in food and the rights to collect the rent
in the form of ‘LAGAAN’.
raw materials.
REASONS:
1. LAND SETTLEMENT SYSTEM:
Most important reason was the introduction of “zamindari
system”.
Profits accuring out of agricultural sector went to the
zamindars regardless of the economic condition of the
cultivator.
The dates for depositing specified sums of lagaan were fixed
with British government, failing to which the zamindars would
lose their rights.
Nothing was done to improve the condition of agriculture.
Resulted in
famines in
India
2. COMMERCIALISATION OF AGRICULTURE:
Production of
crops for sale in
