British Rule in INDIA collided with the industrial Revolution in BRITAIN
Feature of Indian economy on the eve of independence :
1. Stagnant economy -
There was very slow or no economic growth in the country. As a result of stagnation, there was
unemployment, death, and suffering due to lack of food.
2. Backward economy -
Indian economy was a backward economy and per capita income was very low in India, it was
just Rs. 230 from 1947-1948.
3. Agricultural backwardness -
With 70% of people engaged in agriculture, its contribution to GDP was only 50% productivity
and production too were extremely low.
4. Industrial backwardness -
Industrial sector was not developed, there was a lack of basic and heavy industries in the
country.
5. Widespread Poverty
The people in the country could not even meet their basic needs i.e food, shelter and
clothing. Unemployment and Illiteracy were other issues faced by the country.
6. Poor Infrastructure -
Infrastructure like communication, transport, power orenergy was underdeveloped.
7. Major dependence on imports -
As a result of industrial backwardness in the country several consumer goods like
medicines were imported from abroad.
8. Limited Urbanisation -
Majority of the population lived in villages meaning that they lacked opportunities outside
agriculture.
9. Colonial economy-
As India was a British colony, Britishers exploited Indian economy for their own
benefits.
Agricultural Sector on the Eve of Independence :
1. Low Production and Productivity -
Production refers to the total output and Productivity refers to output per hectare of land,
both were very low at the time of Independence.
2. High Degree of Uncertainty -
Agriculture in India was heavily dependent on the rainfall, due to the lack of permanent means
of irrigation (dams, wells) and no efforts by Britishers were made to strengthen the agricultural
sector.
,3. Dominance of Subsistence Farming -
Subsistence farming means the farming that is done just to meet the basic needs of the
farmer (and his family). In India, subsistence-based farming was done resulting in little or no
surplus left for sale meaning that there was a lack of commercial outlook. This lead to the
backwardness of the agricultural sector and the nation.
4. Difference/Gulf between the Owners of the Soil and the Tillers of the Soil -
The owners of the soil shared the output with the tillers but they did not share the cost of
production. The owners were simply interested in increasing their income in termsof share of
output. For tillers agriculture was a source of subsistence and for the owners, it was a source of
income without investment creating a wide economical gap between two.
4. Small and Fragmented Holdings -
There were small and fragmented landholdingsleading to low output at a high cost of
production, therefore, landholdings were uneconomical.
Zamindari System or Land Revenue System under the British Raj :
During the British Rule, a unique land revenue system was introduced in India. Underthis
system, a triangular relationship was set up between the government, the owners and the
tillers of the soil. This system was called “The Zamindari System”.
Features of the Zamindari system are as follows -
i. Zamindars were recognized as the permanent owners of the soil.
ii. Zamindars had to pay fixed sum or revenue to the government as land revenueand if they
were unable to do so they stood in danger of losing their rights.
iii. Zamindars were free to extract as much as they want from the tillers of the soilas they wished
and could.
Problems with the Zamindari System:
i. Unlimited exploitation of the tillers of the soil by the zamindars.
ii. High rates of land revenue to be paid by tillers.
iii. Tillers were reduced to the status of landless laborers resulting in earning just tomeet the
basic needs.
Forced Commercialisation of Agriculture :
Commercialization meant that there was Shift from cultivation for :
SELF- CONSUMPTION TO MARKET
Reason : As mentioned in the beginning of the chapter that the British rule in Indiacollided
with the Industrial Revolution in Britain, therefore this commercialisation ofcrops was done to
meet the requirement of the Indigo that was used by the textile industry in Britain for the
purposes of dying/bleaching.
How was this done ;
1. The farmers were forced to accept the advance payments for the cultivation ofthe
Indigo.
2. Earlier farmers grew grain for their family’s consumption but now they neededcash to
buy it from the market.
3. There were uncertainties in the market due to which the farmers became indebted.
4. This indebtedness of farmers lead to the stagnation and backwardness of the
agriculture
,Industrial Sector On the Eve of Independence :
“Systematic de-industrialization", The decay of India’s world-famous Handicraft industry due
to the discriminatory tariff policies of the Britishers. Bleak growth of moder nindustry due to
lack of investment opportunities.
Decay of Handicrafts -
Before the Britisher's came to India, our country was worldwide famous for itsexcellence
and quality of handicrafts.
Reasons behind the Decay of Handicrafts :
1. Discriminatory Tariff (Tax) Policy -
Britishers found India best source of raw materials and best market for their finished goods.
They started the followingdiscriminatory tariff policies according to which:
→ The export of raw materials from India tariff-free.
→ The import of British Industrial products in India tariff-free.
→ Heavy duty (taxes) was placed on the export of the Indian Handicraft products.British
finished products captured Indian markets. Therefore, the decay of the handicrafts was the
result.
2. Disappearance of the Princely Courts -
→ At the time of Independence India was divided into two sets of territories:
→ The law of British India was placed in both the central and the local governments which
means that the Princely states somehow existed under the influence of the law.
→ Local rulers encouraged(patronize) the handicrafts making them reputed worldwide, with
the greater influence of British law and their discriminatory policythe decay of handicrafts
took place.
3. Competition from Machine- made Products -
The machine-made products from Britain were low-cost and gave tough competitionto
handicrafts products in India. This competition forced the Indian craftsmen to shut their
enterprises forever.
4. New Patterns of Demand -
The impact of the Britishers can be seen on our culture and thinking too. This lead tothe
emergence of the new class and new patterns of class that preferred British products against
Indian products.
5. Introduction of Railways in India -
Railways were introduced in India by the Britishers for their own selfish motives inorder to
expand their markets for the finished products in India. Their expansion leads to decay in
handicrafts.
Bleak Growth of Modern Industry :
→ Only a few industries like Tata Iron and Steel, sugar, etc industries were established.
→ Limited state participation in the process of industrialization
→ Absence of Capital goods (that are used for industrialization) in the country.
Foreign Trade Under British Rule :
British rule in India brought an end to India’s foreign trade as India primarily became a net
exporter of raw materials and importer of finished goods produced by British industry.
, Observations :
1. Net Exporter of Primary Products and Importer of Finished Goods -
India underBritish rule became an exporter of raw materials( cotton, wool, indigo, etc)
andimporter of finished goods. Composition of exports and imports showed the
backwardness of the economy.
2. Monopoly control of India’s Foreign Trade -
British government monopolized the exports and import soft the country in a way that,
More than 50% trade with Britain only. Imports of Britain’s finished goods provided a huge
market to Britishindustry in India.
3. Surplus Trade but only to Benefit the British -
→ Despite the exports exceeded our imports there was mass export of primary goodswhich is
a sign of economic backwardness.
→ Trade surplus used for administrative and war expenses of Britishers and not forgrowth
and development of the country.
Demographic profile during British rule :
Four parameters that are studied here are :
1. Birth Rate and Death Rate - Both were very high and this suggests a state ofmassive
poverty in the country.
2. Infant Mortality Rate - Which means the death rate of children below the age ofone
year was very high owing to poor healthcare facility and poverty.
3. Life Expectancy - Average life of a person living in India at that time was just 32years
which meant that there were poor medical facilities, lack of awareness and means to avail
them.
4. Literacy Rate - It was a slow as 16% and female illiteracy rate was even worse reflecting
social and economic backwardness along with gender- bias. It means thestructure of the
working population across all three sectors of an economy I.e primary, secondary and
tertiary.
Occupational Structure on the Eve of Independence :
Agriculture as Principal source of Occupation - With a large number of the working
population engaged in agriculture, it became the source of livelihood and their only source of
occupation. This shows the backwardness of the country in terms of lack of employment
outside agriculture.
1. The industry as an Insignificant Source of Occupation - Very few people was engaged
in the industrial sector, this proves the backwardness of the Indian economyon the eve of
Independence.
2. Unbalanced Growth - Only when all the sectors of the economy are equally
developed there is balanced growth, but in case of India except agriculture all theother
sectors were in infant stage leading to the backwardness of the country.
INFRASTRUCTURE ON THE EVE OF INDEPENDENCE
The economic and social elements of Infrastructure remained undeveloped except the
Railways, Ports and few roads made and introduced by the Britishers for the transportation of
raw materials from one place to another smoothly.
Feature of Indian economy on the eve of independence :
1. Stagnant economy -
There was very slow or no economic growth in the country. As a result of stagnation, there was
unemployment, death, and suffering due to lack of food.
2. Backward economy -
Indian economy was a backward economy and per capita income was very low in India, it was
just Rs. 230 from 1947-1948.
3. Agricultural backwardness -
With 70% of people engaged in agriculture, its contribution to GDP was only 50% productivity
and production too were extremely low.
4. Industrial backwardness -
Industrial sector was not developed, there was a lack of basic and heavy industries in the
country.
5. Widespread Poverty
The people in the country could not even meet their basic needs i.e food, shelter and
clothing. Unemployment and Illiteracy were other issues faced by the country.
6. Poor Infrastructure -
Infrastructure like communication, transport, power orenergy was underdeveloped.
7. Major dependence on imports -
As a result of industrial backwardness in the country several consumer goods like
medicines were imported from abroad.
8. Limited Urbanisation -
Majority of the population lived in villages meaning that they lacked opportunities outside
agriculture.
9. Colonial economy-
As India was a British colony, Britishers exploited Indian economy for their own
benefits.
Agricultural Sector on the Eve of Independence :
1. Low Production and Productivity -
Production refers to the total output and Productivity refers to output per hectare of land,
both were very low at the time of Independence.
2. High Degree of Uncertainty -
Agriculture in India was heavily dependent on the rainfall, due to the lack of permanent means
of irrigation (dams, wells) and no efforts by Britishers were made to strengthen the agricultural
sector.
,3. Dominance of Subsistence Farming -
Subsistence farming means the farming that is done just to meet the basic needs of the
farmer (and his family). In India, subsistence-based farming was done resulting in little or no
surplus left for sale meaning that there was a lack of commercial outlook. This lead to the
backwardness of the agricultural sector and the nation.
4. Difference/Gulf between the Owners of the Soil and the Tillers of the Soil -
The owners of the soil shared the output with the tillers but they did not share the cost of
production. The owners were simply interested in increasing their income in termsof share of
output. For tillers agriculture was a source of subsistence and for the owners, it was a source of
income without investment creating a wide economical gap between two.
4. Small and Fragmented Holdings -
There were small and fragmented landholdingsleading to low output at a high cost of
production, therefore, landholdings were uneconomical.
Zamindari System or Land Revenue System under the British Raj :
During the British Rule, a unique land revenue system was introduced in India. Underthis
system, a triangular relationship was set up between the government, the owners and the
tillers of the soil. This system was called “The Zamindari System”.
Features of the Zamindari system are as follows -
i. Zamindars were recognized as the permanent owners of the soil.
ii. Zamindars had to pay fixed sum or revenue to the government as land revenueand if they
were unable to do so they stood in danger of losing their rights.
iii. Zamindars were free to extract as much as they want from the tillers of the soilas they wished
and could.
Problems with the Zamindari System:
i. Unlimited exploitation of the tillers of the soil by the zamindars.
ii. High rates of land revenue to be paid by tillers.
iii. Tillers were reduced to the status of landless laborers resulting in earning just tomeet the
basic needs.
Forced Commercialisation of Agriculture :
Commercialization meant that there was Shift from cultivation for :
SELF- CONSUMPTION TO MARKET
Reason : As mentioned in the beginning of the chapter that the British rule in Indiacollided
with the Industrial Revolution in Britain, therefore this commercialisation ofcrops was done to
meet the requirement of the Indigo that was used by the textile industry in Britain for the
purposes of dying/bleaching.
How was this done ;
1. The farmers were forced to accept the advance payments for the cultivation ofthe
Indigo.
2. Earlier farmers grew grain for their family’s consumption but now they neededcash to
buy it from the market.
3. There were uncertainties in the market due to which the farmers became indebted.
4. This indebtedness of farmers lead to the stagnation and backwardness of the
agriculture
,Industrial Sector On the Eve of Independence :
“Systematic de-industrialization", The decay of India’s world-famous Handicraft industry due
to the discriminatory tariff policies of the Britishers. Bleak growth of moder nindustry due to
lack of investment opportunities.
Decay of Handicrafts -
Before the Britisher's came to India, our country was worldwide famous for itsexcellence
and quality of handicrafts.
Reasons behind the Decay of Handicrafts :
1. Discriminatory Tariff (Tax) Policy -
Britishers found India best source of raw materials and best market for their finished goods.
They started the followingdiscriminatory tariff policies according to which:
→ The export of raw materials from India tariff-free.
→ The import of British Industrial products in India tariff-free.
→ Heavy duty (taxes) was placed on the export of the Indian Handicraft products.British
finished products captured Indian markets. Therefore, the decay of the handicrafts was the
result.
2. Disappearance of the Princely Courts -
→ At the time of Independence India was divided into two sets of territories:
→ The law of British India was placed in both the central and the local governments which
means that the Princely states somehow existed under the influence of the law.
→ Local rulers encouraged(patronize) the handicrafts making them reputed worldwide, with
the greater influence of British law and their discriminatory policythe decay of handicrafts
took place.
3. Competition from Machine- made Products -
The machine-made products from Britain were low-cost and gave tough competitionto
handicrafts products in India. This competition forced the Indian craftsmen to shut their
enterprises forever.
4. New Patterns of Demand -
The impact of the Britishers can be seen on our culture and thinking too. This lead tothe
emergence of the new class and new patterns of class that preferred British products against
Indian products.
5. Introduction of Railways in India -
Railways were introduced in India by the Britishers for their own selfish motives inorder to
expand their markets for the finished products in India. Their expansion leads to decay in
handicrafts.
Bleak Growth of Modern Industry :
→ Only a few industries like Tata Iron and Steel, sugar, etc industries were established.
→ Limited state participation in the process of industrialization
→ Absence of Capital goods (that are used for industrialization) in the country.
Foreign Trade Under British Rule :
British rule in India brought an end to India’s foreign trade as India primarily became a net
exporter of raw materials and importer of finished goods produced by British industry.
, Observations :
1. Net Exporter of Primary Products and Importer of Finished Goods -
India underBritish rule became an exporter of raw materials( cotton, wool, indigo, etc)
andimporter of finished goods. Composition of exports and imports showed the
backwardness of the economy.
2. Monopoly control of India’s Foreign Trade -
British government monopolized the exports and import soft the country in a way that,
More than 50% trade with Britain only. Imports of Britain’s finished goods provided a huge
market to Britishindustry in India.
3. Surplus Trade but only to Benefit the British -
→ Despite the exports exceeded our imports there was mass export of primary goodswhich is
a sign of economic backwardness.
→ Trade surplus used for administrative and war expenses of Britishers and not forgrowth
and development of the country.
Demographic profile during British rule :
Four parameters that are studied here are :
1. Birth Rate and Death Rate - Both were very high and this suggests a state ofmassive
poverty in the country.
2. Infant Mortality Rate - Which means the death rate of children below the age ofone
year was very high owing to poor healthcare facility and poverty.
3. Life Expectancy - Average life of a person living in India at that time was just 32years
which meant that there were poor medical facilities, lack of awareness and means to avail
them.
4. Literacy Rate - It was a slow as 16% and female illiteracy rate was even worse reflecting
social and economic backwardness along with gender- bias. It means thestructure of the
working population across all three sectors of an economy I.e primary, secondary and
tertiary.
Occupational Structure on the Eve of Independence :
Agriculture as Principal source of Occupation - With a large number of the working
population engaged in agriculture, it became the source of livelihood and their only source of
occupation. This shows the backwardness of the country in terms of lack of employment
outside agriculture.
1. The industry as an Insignificant Source of Occupation - Very few people was engaged
in the industrial sector, this proves the backwardness of the Indian economyon the eve of
Independence.
2. Unbalanced Growth - Only when all the sectors of the economy are equally
developed there is balanced growth, but in case of India except agriculture all theother
sectors were in infant stage leading to the backwardness of the country.
INFRASTRUCTURE ON THE EVE OF INDEPENDENCE
The economic and social elements of Infrastructure remained undeveloped except the
Railways, Ports and few roads made and introduced by the Britishers for the transportation of
raw materials from one place to another smoothly.
