Concept 1 Low Level of Economic Development Under Colonial Rule
Low level of economic development under colonial rule
Before the advent of British rule , Indian economy was characterized by following features:
However, their policies brought a fundamental change in the structure of Indian economy. They transformed the country into a supplier of raw material and consumer of finished industrial products from Britain.
Low level of national income and per capita income
most of the studied revealed that country growth of aggregate real output during the first half of the twelfth century was less than 2% and only 0.5%growth in per capita. however, no sincere attempt was made by the British government to estimate India national and per capita income. Some individual attempt were made by expert like dadabhai naoroji , william dighy , Findlay shiras , V.K.R.V rao and R.C desai .but , all these estimated produced conflicting and inconsistent results.
Concept 2 Agriculture sector
During the pre-British period, the condition of Indian agriculture was not at all satisfactory. Nearly 85 per cent of the country’s population lived mostly in villages and derived livelihood, directly or indirectly from agriculture. Even with this large proportion of population engaged in agriculture, the country was not self-sufficient in food and raw materials for industry.
Main causes of stagnation in agriculture sector
Land Settlement System: The most important reason for stagnation in agricultural sector was the introduction of ‘Zamindari System’ …Under this system, profits accruing out of agricultural sector went to the zamindars in the form of ‘lagaan’. The main interest of the zamindars was only to collect lagaan regardless of the economic condition of the cultivator. The zamindars and the colonial government did nothing to improve the condition of agriculture
Commercialization of agriculture
Commercialization of agriculture means production of crops for sale in the market rather than for self -consumption. During the British rule, farmers were given higher price for producing cash crops (like cotton or jute), so that such crops could be used as raw material for British Industries. Thus, British rule promoted shifting of crops from food crops to cash crops.
Low Level of Productivity: Low levels of technology, lack of irrigation facilities and negligible use of fertilizers resulted in low level of productivity. The cultivator had neither the means nor any incentive to invest in agriculture. The zamindar had no roots in the villages, while the British rule spent little on agricultural, technique or mass education. All this made it difficult to introduce modern technology, which caused a perpetually low level of productivity.
4.Scarcity of investment –
India’s agriculture was facing scarcity of investment in terracing, flood -control and drainage. Although some farmers changed their cropping pattern from food crop to commercial crops, a large section of tenants, small farmers and sharecroppers neither had resources and technology nor had incentives to invest in agriculture…...
CONCEPT- Industrial Sector
Although agriculture had dominated the Indian economy during the pre-British period, but some Indian industries, producing certain special products, enjoyed worldwide reputation. India was particularly well known for its handicraft industries.
Like agriculture, India could not develop a sound industrial base under the British rule.
British Government systematically destroyed Indian handicraft industries and no modern industrial base was allowed to come up. The primary motive of British rule behind the de- industrialization was two-fold:To get raw materials from India at cheap rates to be used by upcoming modern industries in Britain’To sell finished products of British industries in Indian market at higher prices. The two-fold policy of British rule was enforced to ensure the maximum advantage of their home country.
Adverse effects of decline of decline of handicraft Industry: Decline of handicraft industries adversely affected the Indian economy in the following ways: High Level of Unemployment: The decline of Indian handicrafts resulted in unemployment on a mass scale. The displaced artisans were forced to take up agriculture for their livelihood. This increased the burden of population on villages and over-crowding in agriculture. Import of Finished Goods: The Indian made goods could not withstand the foreign competition of machine-made cheap goods. It encouraged the import of manufactured goods from Britain.
Capital goods industry refer to those industries which can produce machine tools, which are, in turn, used for producing articles for current consumption.
British rulers did not pay any attention for their promotion as they always wanted Indians to be dependent on Britain, for the supply of capital goods and heavy equipment
The growth rate of the new industrial sector and its contribution to the GDP remained very small.
Finally, it can concluded that India remained backward in the industrial sector during the British rule.
Concept- Foreign Trade
India has been an important trading nation since ancient times. However, the restrictive policies adopted by the colonial government adversely affected the structure, composition and volume of India’s foreign trade.
Change in composition of trade: India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc. and an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods like machinery, produced in the British Industries
British Government maintained a monopoly control over India’s exports and Imports.
To make payments for expenses incurred by an office set up by the colonial government in Britain
Drain of Indian wealth during British rule: Under the British rule, India became an exporter of primary products (raw materials) and an importer of finished goods. There was huge export surplus due to excess exports. However, export surplus was used:
4.Change in volume of trade: Suez Canal
Suez Canal is an artificial waterway running from north to south across the isthmus of Suez Canal in north-eastern Egypt.
Concept - Demographic condition
Demographic conditions during the British Rule exhibited all features of a stagnant and backward Indian economy.
Birth rate refers to number of children born per thousand in a year. Death rate refers to number of people dying per thousand persons in a year. Both birth rate and death rate were very high at nearly 48 and 40 per thousand respectively.
Extremely Low Literacy rate: The overall literacy level was less than 16 per cent. Out of this, the female literacy level was at a negligible low of about 7 per cent.
Public health facilities were either unavailable to large mass of population or, when available, were highly inadequate. As a result, water and air-borne diseases were widespread and took a huge toll on life.
Infant mortality rate refers to number of infants dying before reaching one year of age per 1,000 live births in a year. The infant mortality rate was quite alarming – about 218 per thousand, in contrast to the infant mortality rate of 44 per thousand in 2011.
Life Expectancy refers to the average number of years for which people are expected to live. Life expectancy was also very low – 44 years, in contrast to present 68 years
It can be concluded that British rule was the main reason to worsen the profile of India’s population.
Concept - Occupational Structure
Occupational structures refers to distribution of working persons across different industries and sectors. During the colonial period, the occupational structure of India showed little sign of change. The state of occupational structure during the British rule can be summarized as under:
Concept - Infrastructure
The infrastructure facilities during British rule were very poor. Some efforts were made to develop basic infrastructure like roads, railways, ports, water transports, posts and telegraphs. But, the main motive behind such infrastructural development was to serve various colonial interests.
1. Air and water transport:
British Government took measures for developing the water and air transport. However, their development was far from satisfactory.
Indian waterways proved to be uneconomical, as in the case of the Coast Canal on the Orissa coast. This canal was built at a huge cost, but it failed to complete with the railways, and finally, canal had to be abandoned.
2.Railways:
The most important contribution of the British rule was to introduce railways in India in 1850. The railways affected the structure of the Indian economy in two important ways.
3. roads: The colonial administration could not accomplish much on construction of roads due to scarcity of funds.
4.Communication:
Posts and telegraphs were the most popular means of communication.
Reason for infrastructual development
Britishers Objective to develop infrastructure is not to provide basic amenities to the people but because of their own colonial interest.
The roads were built for drawing out raw material from the countryside to the nearest railway stations and ports to other foreign countries.
Railways were developed mainly to have effective control and administrative over Indian territory and to earn profit by linking Railways with the major ports.
The introduction of the expensive system of electric telegraph in India, similarly, served the purpose of maintaining law and order
Drain of Indian wealth during British rule: Under the British rule, India became an exporter of primary products (raw materials) and an importer of finished goods. There was huge export surplus due to excess exports. However, export surplus was used:
Change in composition of trade: India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc. and an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods like machinery, produced in the British Industries
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