DEVELOPMENT EXPERIENCE (1947-90) AND ECONOMIC REFORMS SINCE 1991

INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

AGRICULTURAL SECTOR

REASONS FOR STAGNATION IN AGRICULTURAL SECTOR

1- Land settlement system

2- commercialization of agriculture

3- Low level of productivity

4- Scarcity of investment

INDUSTRIAL SECTOR

• India could not develop a sound industrial base under the colonial rule.
• Even the country’s world famous handicraft industries declined.
• No commercial modern industrial base was allowed to come up.

Cont……..

• The primary motive behind this policy of deindustrialization was :
• To reduce India to the status of more exporter of important raw materials far the upcoming

modern industries in Britain.

• To turn India into a market for the

finished products manufactured by industries in Britain.

* The decline at the traditional handicraft industries created

FOREIGN TRADE

• India has been an important trading nation since ancient time. But the restrictive policies pursued by the colonial .
• Govt. adversely affected the structure, composition and volume of India’s foreign trade

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.

Demographic profile

Cont……

• The demographic conditions during the British rule suggested all the features of a backward economy. Various details about the population was first collected through a census in 1881. before 1921. India was in first stage of demographic transition. The second stage of transition started after 1921. however, neither the total population growth at this stage was very high. The year 1921 is described as the “year of great divide”.

The demographic conditions were asunder :-

• The overall literacy level was less than 16%
• Female literacy was 7%
• Overall mortality rate was high
• Infant mortality rate was 218 per thousand (present rate is 44/1000)
• Life expectancy was also very low 32 years ( present 68 years)
• Extensive poverty was present
• Water and air borne diseases were rampant.

Occupational structure

• Primary

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• Secondary

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• Tertiary

Infrastructure

• Under the colonial rule, basic infrastructure such as roads, railway, ports, water transports, post and telegraph etc were developed. But this development was not to provide basic amenities to the people of the country. But to sub serve the colonial interests.
• The roads were built for mobilizing the army within India and for drawing out raw materials from the countryside to the nearest railway station or the port to send these to England or other foreign lands.

Cont…..

• The railways helped in commercialization of Indian agriculture which adversely affected the comparative self sufficiency of the village economics in India.
• The introduction of the expensive system of electric telegraph in India, similarly served the purpose of maintaining law and order.

infrastructure

Effects of railways

• The British introduced the railways in India in 1850. it is considered one of the most important contribution. It affected the structure of the Indian railways in many ways.
• It enabled people to undertake long distance travel and there by break geographical and cultural barriers.
• It helped in integrating the nation.
• The volume of India’s export trade and undoubtedly expanded.

Cont….

• It fostered commercialization of Indian agriculture which adversely affected the self sufficiency of the village economics in India.
• It provided employment opportunities to the people.

Impact of railways

Conclusion

• After finishing the chapter students will come to know that the social and economic challenges before the country were enormous.

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