Indian Economy On The Eve of Independence
Indian Economy On The Eve of Independence
Indian Economy On The Eve of Independence
Indian Economy
Indian Economy on the eve of independence
Production refers to the total output and Productivity refers to output per hectare hand, both were
very low at the time of Independence.
Agriculture in India was heavily dependent on rainfall, due to the lack of permanent means of
irrigation(dams, wells), and no efforts by Britishers were made to strengthen the agricultural sector.
Subsistence farming means 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 led 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 terms of 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 the two.
5. Small and Fragmented Holdings: There were small and fragmented landholdings leading to
low output at a high cost of production, therefore, landholdings were uneconomical.
6. Zamindari System or Land Revenue System under the British Raj:
During British Rule, a unique land revenue system was introduced in India. Under this
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 was recognized as the permanent owners of the soil.
ii) Zamindars had to pay a fixed sum or revenue to the government as land revenue and 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 soil as they wished
and could.
iii) Tillers were reduced to the status of landless laborers resulting in earnings just to meet their basic
needs.
1. The farmers were forced to accept the advance payments for the cultivation of the Indigo.
2. Earlier farmers grew grain for their family’s consumption but now they needed cash to buy it from
the market.
3. There were uncertainties in the market due to which the farmers became indebted.
o DECAY OF HANDICRAFTS - Before the Britishers came to India, our country was
worldwide famous for its excellence and quality of handicrafts. But, the Britishers
want to destroy the Handicraft industry of India so that they can set up their
industry.
o Birth Rate and Death Rate- Both birth rate and death rate were very high -
nearly 48 and 40 per thousand respectively. It suggests a state of massive
poverty in the country.
o Infant Mortality Rate- This means the death rate of children below the age of
one year was very high owing to poor healthcare facilities and poverty. It was
about 218 per thousand currently it is 44 per thousand.
o Life Expectancy- Average life of a person living in India at that time was just 32
years which meant that there were poor medical facilities, and a lack of
awareness and means to avail them. Presently life expectancy is 68 years.
o Literacy Rate- It was as slow as 16% and the female illiteracy rate was 7% even
worse reflecting social and economic backwardness along with gender- bias. It
means the structure of the working population across all three sectors of an
economy I.e primary, secondary and tertiary. Currently, the literacy rate in India
is 74.04% male literacy rate is 82.14% and the female literacy rate is 64.46%.