Posted by
Anjali Kaur
on
Apr 27, 2020
What was the state of the Indian economy on the eve of independence?
The Indian economy has become a victim of extensive exploitation. Natural resources, gold mines, human resources, iron ores, and wealth also undergone extreme misuse and manipulation. Because of these issues, the Indian economy on the eve of independence manifested very low and weak economic growth. India was under British rule that lasted for almost 200 years before India finally won its independence on 15th August 1947. The sole purpose of the British colonial rule in India was to reduce the country’s status to being a raw material supplier for Great Britain’s own rapidly expanding modern Industrial base.
State of Indian Economy on the eve of Independence
On the eve of Independence, India possessed a low level of economic development under the colonial rule. The Indian economy has become a victim of extensive exploitation. Natural resources, gold mines, human resources, iron ores, and wealth also undergone extreme misuse and manipulation. Because of these issues, the Indian economy on the eve of independence manifested very low and weak economic growth.
What was the state of Indian economy before Britishers?
- Pre-British era: India was an independent economy before the British rule, and agriculture was the main source of livelihood for most of the people, with various kinds of manufacturing activities. India was popular for its handicraft industries in the fields of cotton and silk textiles, metal and precious stonework, etc. These products had a fine quality and high standards.
What was the state of the Indian economy during British rule?
- During the British reign on India: The Colonial government followed the policies of protection and promotion of their home country economic interest rather than developing the Indian economy. These policies transformed India into a supplier of raw materials and consumers of finished industrial products from Britain. The colonial government never made any sincere attempt to estimate India’s national and per capita income. India’s per capita income and national income was first measured by Dadabhai Naoroji, then by William Digby, Findlay Shirras, V.K.R.V. Rao, and R.C. Desai. Among them, V.K.R.V. Rao, estimates were useful. The country’s growth of aggregate real output during the first half of the 20th century was less than 2%.
Read more about the different sector of the Indian economy on the eve of independence;
- Agriculture sector
- Infrastructure sector
- Industrial sector
- Demographic conditions
- Occupational structure
- Foreign trade
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