CBSE Class 12th Indian Economic Development Notes _ Chapter 1 Indian Economy on the Eve of Independence
CBSE Class 12th Indian Economic Development Notes
Chapter 1 Indian Economy on the Eve of Independence
Agricultural Sector On The Eve Of Independence
1. Low Level of Productivity: Level of productivity was extremely low.
2. High degree of Vulnerability: Agriculture showed a high degree of vulnerability. Because, it was excessively dependent upon rainfall. Good rainfall implied good output, While poor rainfall implied poor output.
3. A wedge between owners of the soil and tillers of the soil: Owners, as crop sharers, were never committed to prosperity of agriculture; they were only interested in maximizing their rental income. The tillers of the soil were given barely enough for substance.
4. Uneconomic and fragmented landholdings: On the eve of independence, Indian farmlands were fragmented and scattered in pieces. Accordingly, most landholdings were uneconomic, yielding low surplus.
Factors Causing Backwardness And Stagnation Of Indian Agriculture during The British Rule
1. Land Revenue System Under The British Raj:
(a)The British government in India invented a unique system of land revenue. This was popularly known a Zamindari system of Land Revenue.
(b)The Zamindars were absolutely free to extract as much from the tillers of the soil as they could. They frequently raised the land revenue and ejected the existing tillers in case they objected to the raise.
2. Forced Commercialization of Agriculture:
(a) Farmers were forced to shift to commercial crops from the conventional subsistence crops. The farmers were lured or forced to accept advance payments for the cultivation of indigo. It exposed the subsistence farmers to uncertainties of the market. Consequence: Stick to agriculture, and always be at the mercy of landlords or moneylenders.
(b) Consequence, on the eve of independence, agricultural sector of the economy was absolutely backward, stagnant and non-vibrant. The impact was significantly felt with regard to jute production. Because the bulk of fertile land went to east Pakistan.
Industrial Sector On The Eve Of Independence
1. Discriminatory Tariff Policy of the state: The British needed raw material for their expanding industry, as well as market for their final products. They found India as a lucrative source of raw material and a promising market for their industrial products. A Discriminatory Tariff Policy was pursued. It allowed tariff free export of raw material from India and tariff free import of British industrial product into India, but placed a heavy duty on the export of Indian handicraft products.
2. Disappearance of Princely Courts: They used to partronise the handicrafts, enable to acquire international reputation. The beginning of British rule implied the end of princely courts, and therefore, the end of state patronage to handicrafts. Consequently, the handicrafts started decaying.
3. Competition from Machine-made products: Machine-made products from Britain were low-cost products and gave a stiff competition to the handicraft products in India. Competition forced the Indian craftsmen to shut-down their enterprises forever.
4. New Pattern of Demand: Owing to the impact of British culture, a new class emerged in India which was keen to adopt the western lifestyle. This changed the pattern of demand against the Indian products and in favour of the British products.
5. Introduction of Railways in India: The British government introduced railways in India. This was to facilitate transportation of the British products across different parts of the country. Consequently, Size of the market for the low-cost British products tended to expand while it started shrinking for the high-cost Indian products.
BLEAK GROWTH OF MODERN INDUSTRY
1. Under British Raj modern industry showed only a bleak growth.
2. A few textile mills sprang up followed by some iron&steel enterprises. Subsequently, a few sugar, cement and paper mills were established.
3. The state participation in the process of modern industrialization was very limited and confined only to the area which would enlarge the size of the market for the British products in India. These included: (1) Railway, (2) Power generation, (3) Development of ports and (4) The means of communication.
4. There was no capital goods industry worth the name. Capital goods industry produces goods like machines and industrial plants which are used for further industrialization.
Foreign Trade Under Thee British Rule
1. Net Exporter of primary products and Importer of finished goods: Owing to colonial exploitation of the Indian economy, India Became net exporter of raw materials and primary products. On the other hand it became net importer of finished goods produced by the British industry.
2. Monopoly Control of India's Foreign trade: Since India was being ruled as a British colony, exports and imports of the country became under monopoly control of the British government . More than 50 percent of India's foreign trade was directed towards Great Britain.
3. Surplus Trade but only to Benefit Britishers:
(1) Surprisingly, during the British regime, India's exports exceeded her imports, imports, implying a surplus of balance of trade. But this surplus was owing largely to the export of primary goods which is a sign of economic backwardness.
(2) Still worse was the fact that the trade surplus was not used for growth and development of the country; instead it was used to meet administrative expenses of the British government in India, as well as to meet expenses of wars fought by the British government.
Demographic Profile During The British Rule
A. Infant Mortality Rate: Death rate of children below the age of one year was very high. It was about 218 per thousand- contrasting sharply with 42 per thousand at present.
B. Life Expectancy: Average life of a person was as low as 32 years, while presently it is 66 years. Low life expectancy reflects lack of health care facilities.
C. Birth Rate And Death Rate: Both birth rate (BR) and death rate (DR) were very high-nearly 48 and 40 per thousand respectively. High BR and high DR suggest a state of massive poverty in the country.
D. Literacy Rate: was nearly 16 percent, reflecting social backwardness as a reflection of economic backwardness. Female literacy rate was still worse -- only 7 percent. This indicated gender-bias in the society.
Occupational Structure On The Eve Of Independence
1. Agriculture -The principal source of occupation: On the eve of independence, about 72.7 percent of working population was engaged in agriculture.
2. Industry-an insignficiant source of occupation
3. Unbalanced Growth: Growth is said to be balanced when all sectors of the economy are equally developed. In case of India, secondary and tertiary sectors were in their infant stage of growth.
WAS THERE ANY POSITIVE IMPACT OF THE BRITISH RULE IN INDIA?
1. Commercial agriculture
2. Spread of railways and roadways
3. Expanding means of transport: served as a support system to combat the spread of famines.
4. There was a significant transition from barter system of exchange to monetary system of exchange.
5. The British Raj in India left a legacy of an efficient system of administration. This served as a ready-reckoner for our politicians and planners.
3. A wedge between owners of the soil and tillers of the soil: Owners, as crop sharers, were never committed to prosperity of agriculture; they were only interested in maximizing their rental income. The tillers of the soil were given barely enough for substance.
4. Uneconomic and fragmented landholdings: On the eve of independence, Indian farmlands were fragmented and scattered in pieces. Accordingly, most landholdings were uneconomic, yielding low surplus.
Factors Causing Backwardness And Stagnation Of Indian Agriculture during The British Rule
1. Land Revenue System Under The British Raj:
(a)The British government in India invented a unique system of land revenue. This was popularly known a Zamindari system of Land Revenue.
(b)The Zamindars were absolutely free to extract as much from the tillers of the soil as they could. They frequently raised the land revenue and ejected the existing tillers in case they objected to the raise.
2. Forced Commercialization of Agriculture:
(a) Farmers were forced to shift to commercial crops from the conventional subsistence crops. The farmers were lured or forced to accept advance payments for the cultivation of indigo. It exposed the subsistence farmers to uncertainties of the market. Consequence: Stick to agriculture, and always be at the mercy of landlords or moneylenders.
(b) Consequence, on the eve of independence, agricultural sector of the economy was absolutely backward, stagnant and non-vibrant. The impact was significantly felt with regard to jute production. Because the bulk of fertile land went to east Pakistan.
Industrial Sector On The Eve Of Independence
1. Discriminatory Tariff Policy of the state: The British needed raw material for their expanding industry, as well as market for their final products. They found India as a lucrative source of raw material and a promising market for their industrial products. A Discriminatory Tariff Policy was pursued. It allowed tariff free export of raw material from India and tariff free import of British industrial product into India, but placed a heavy duty on the export of Indian handicraft products.
2. Disappearance of Princely Courts: They used to partronise the handicrafts, enable to acquire international reputation. The beginning of British rule implied the end of princely courts, and therefore, the end of state patronage to handicrafts. Consequently, the handicrafts started decaying.
3. Competition from Machine-made products: Machine-made products from Britain were low-cost products and gave a stiff competition to the handicraft products in India. Competition forced the Indian craftsmen to shut-down their enterprises forever.
4. New Pattern of Demand: Owing to the impact of British culture, a new class emerged in India which was keen to adopt the western lifestyle. This changed the pattern of demand against the Indian products and in favour of the British products.
5. Introduction of Railways in India: The British government introduced railways in India. This was to facilitate transportation of the British products across different parts of the country. Consequently, Size of the market for the low-cost British products tended to expand while it started shrinking for the high-cost Indian products.
BLEAK GROWTH OF MODERN INDUSTRY
1. Under British Raj modern industry showed only a bleak growth.
2. A few textile mills sprang up followed by some iron&steel enterprises. Subsequently, a few sugar, cement and paper mills were established.
3. The state participation in the process of modern industrialization was very limited and confined only to the area which would enlarge the size of the market for the British products in India. These included: (1) Railway, (2) Power generation, (3) Development of ports and (4) The means of communication.
4. There was no capital goods industry worth the name. Capital goods industry produces goods like machines and industrial plants which are used for further industrialization.
Foreign Trade Under Thee British Rule
1. Net Exporter of primary products and Importer of finished goods: Owing to colonial exploitation of the Indian economy, India Became net exporter of raw materials and primary products. On the other hand it became net importer of finished goods produced by the British industry.
2. Monopoly Control of India's Foreign trade: Since India was being ruled as a British colony, exports and imports of the country became under monopoly control of the British government . More than 50 percent of India's foreign trade was directed towards Great Britain.
3. Surplus Trade but only to Benefit Britishers:
(1) Surprisingly, during the British regime, India's exports exceeded her imports, imports, implying a surplus of balance of trade. But this surplus was owing largely to the export of primary goods which is a sign of economic backwardness.
(2) Still worse was the fact that the trade surplus was not used for growth and development of the country; instead it was used to meet administrative expenses of the British government in India, as well as to meet expenses of wars fought by the British government.
Demographic Profile During The British Rule
A. Infant Mortality Rate: Death rate of children below the age of one year was very high. It was about 218 per thousand- contrasting sharply with 42 per thousand at present.
B. Life Expectancy: Average life of a person was as low as 32 years, while presently it is 66 years. Low life expectancy reflects lack of health care facilities.
C. Birth Rate And Death Rate: Both birth rate (BR) and death rate (DR) were very high-nearly 48 and 40 per thousand respectively. High BR and high DR suggest a state of massive poverty in the country.
D. Literacy Rate: was nearly 16 percent, reflecting social backwardness as a reflection of economic backwardness. Female literacy rate was still worse -- only 7 percent. This indicated gender-bias in the society.
Occupational Structure On The Eve Of Independence
1. Agriculture -The principal source of occupation: On the eve of independence, about 72.7 percent of working population was engaged in agriculture.
2. Industry-an insignficiant source of occupation
3. Unbalanced Growth: Growth is said to be balanced when all sectors of the economy are equally developed. In case of India, secondary and tertiary sectors were in their infant stage of growth.
WAS THERE ANY POSITIVE IMPACT OF THE BRITISH RULE IN INDIA?
1. Commercial agriculture
2. Spread of railways and roadways
3. Expanding means of transport: served as a support system to combat the spread of famines.
4. There was a significant transition from barter system of exchange to monetary system of exchange.
5. The British Raj in India left a legacy of an efficient system of administration. This served as a ready-reckoner for our politicians and planners.
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