Class Notes

3. LESSON 1 Indian Economy on the Eve
- =
of Indepence .
Low level of Economic Development Under
Colonial Rule .
→ Prosperous Agrarian Well Known
Economy Economy handicraft
industries
it is
India was self-Reliant zizrd Population f,
silk and cotton
and prosperous.
in
Agri" '""
T
extile
industry
was rich .
due to high standard of
CRAFTSMANSHIP.

4. town Kewell off ☒
laattiionnaalllnneoomme
canned Beer eaappiittaallnneommee ..
→ No sincere Attempt → Individual Attempt by
by the British Govt -
Dadabhai Naoroji,
William
Digby,
Fid lay shirras ,
v. K . R- V Rao
and R .
C Desai.
→
conflicting Results .
Dr. Rao 's
study were → country 's
growth of Aggregate
significant.
Real output =
24 .
per capita output
=
o
-
5
'
/.
per year

5. AAgrrieokwrraats.ec#or
Condition of Indian
Agriculture was not at all
satisfactory .
1- . India 's
economy
under the British colonial rule
was
overwhelming rural and agricultural in character.
2. 857.
derived livelihood
Directly or
indirectly .
3. produce was not sufficient for food 4 raw materials .

6. REASON FOR STAGNATION
1. Land settlement system
: -
↳ zamindari
system -7 Collection of Lagaan by zamindari.
-
-
2. commercialisation of Agriculture
: -
fi production of ↳ CASH CROPS : cotton 4 Jute
crop for SALE .
- -
3. Low level of
Productivity
: -
↳ Low level of Tech .
-1 No irrigation facilities + No fertilizer

7. Industrial sector
I. If
-
industrialisation
Decline Of Handicraft Industry .
Primary Motive of British rule
→ Get Cheap Raw Material From India.
→ sell British goods at higher prices.

8. 2. Adverse effects of decline
of Handicraft industry .
① High level of unemployment ② Import of Finished Goods .
↳ Decline of Indian handicraft
↳ Indian made
goods could
not withstand the foreign
resulted in unemployment .
competition.
3. Lack of capital Goods
4. Low contribution to GDP .
Industries .
↳
very low contribution .
Britishers wanted Indians
for the
supply of capital
goods
and heavy equipments . 5. Limited role of Public sector
↳ Railways .
power generation ,

9. FOREIGN TRADE
1-
Exporter of primary Products
Importer of Finished Goods
Export ? Raw silk,
cotton , wool
sugar ,
indigo , jute,
etc
Import : silk' cotton ,
woollen clothes
light machineries 2 .
Monopoly
control of
British Rule .
↳ More than half of
India 's
foreign trade
were restricted to
Britain

10. 3. Drain of Indian wealth
4
Huge export surplus
due to excess
exports
Usei import invisible items
meet War expenses
expenses by British Govt .

11. ☒emmooggrraaphhi.cc ccoonncdlittioonn .
1st OFFICIAL Census : -
1881
year of Great Divide : -
1921 → First stage of demographic
transition .
1. High Birth Rate
and Death Rate
↳ Birth Rate : No.
of children born
per thousand in a
year. -7 48.
Death Rate : No .
of people dying per thousand in a
year
↳ 40 .

12. 2. Extremely Low
Literacy Rate
↳
Overall literacy level → 16
per cent.
Female literacy level → 7
percent.
3-
High Infant Mortality Rate
4- No .
of infants dying before reaching one
Year 218 per thousand
of age per 1000 Live births in a
year
.
:
44 per
thousand
in 2011 .
4. Low life Expectancy .
↳
Average No-
of years for which
people
are expected to live -
→ 44 years
-

13. ⑤
eeuulpaattiioonnaal Structure .
-
Distribution of working persons across different industries
and sectors .
1. Pre -
dominance of Primary occupation :-
Agricultural sector accounted for 75% workforce
2. Regional variation .
states → T
amil Nadu, Andhra Pradesh .
Kerala , Karnataka
Maharashtra and West Bengal
↳ increase in Manufacturing and service sector
↳ Decrease in
Agriculture
STATES LIKE
"
ORISSA , RAJASTHAN, PUNJAB saw an increase in the share of Agriculture
workload

14. Itnnfrraassttrruueltturree
1. Roads → Mainly used for Mobilising the
army
and shifting raw materials.
fi
There was a
shortage
of all weather roads .
2. Railways → British introduced in India in 1850 .
↳
It enabled commercialisation
Railway enabled people
to undertake
long distance of Indian agriculture.

15. 3. Air and water
Transport .
Development of water
and Air was far from satisfactory.
4 . Communication
↳ Posts and Telegraphs
were the most popular
means of communication .

16. ssittivveeonnttrribbutitionnoot.PBrriitti.sk Rude .
1. Self -
sufficiency in food grain production : -
commercialisation
of Agriculture resulted in self -
sufficiency
2. Better means of Transportation :-
Development of Infrastructure .
3 .
Shift to Monetary Economy ;.
Shift from BARTER system
4 .
Effective administrative setup
: -
Ready for Indian politicians .

17. STATE OF INDIAN ECONOMY ON THE EVE
OF INDEPENDENCE .
1- . Colonial Economy
They incovraged
British rule resulted
in huge drain of wealth communication of
Agriculture and Industri cisation .
2. Semi -
feudal Economy
→ land settlement system
gave birth to feudal relations
&
Establishment of modern
Industries led to creation
of two classes
CAPITALIST 4 LABOURERS

18. 3.
Stagnant Economy
India 's growth was stagnant
as
country 's growth of aggregate
real output was less than 29.
Growth in Per capita output -
051.
U . Backward Economy
Indian Economy was backward and underdeveloped .
5 .
Depleted Economy
4 No Arrangement
made to replace physical assets ,
depreciated due to
excess use in 2nd World War .
6 . Amputated Economy .
British Policy of Divide And Rule always Promoted Discrimination .