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Indian Economy On The Eve of Independence
Indian Economy On The Eve of Independence
INDEPENDENCE
CLASS – XII ECONOMICS
INDIAN ECONOMY BEFORE THE ESTABLISHMENT OF
BRITISH RULE
i. Agriculture was the main economic activity of
the people.
ii. Handicrafts industries like cotton textiles, silk
textiles, metal and precious stones work were
developed.
iii. Indian handicrafts goods were World famous as
they were of very good quality.
Agriculture was the main economic activity of the people.
Handicrafts industries like cotton textiles,
silk textiles, metal and precious stone works developed .
MAIN PURPOSES OF BRITISH RULE IN INDIA
(ii) Competition from British Goods: Low cost and better finished
British goods were imported to India on a large scale. So, our goods
faced stiff competition in the markets.
(iii) Loss of International Demand: European countries made laws to
heavy import duty on Indian goods. So, our goods lost their international
market.
(iv) New Pattern of Demand: The middle class was influenced by western
take their goods even to the interior parts of India. Thus, Indian goods
(vi) Loss of Patronage: The end of the rule of Kings and Nawabs resulted
DRAIN OF INDIA’S WEALTH
• The British government in India served the British
economic interests. India’s wealth drained in to Britain.
(i) India’s export surplus was used for maintaining
British Government Offices and to fight wars.
(ii) The British government collected heavy taxes from
the Indian people.
(iii) India’s treasures were taken to Britain. A lot of gold
ornaments and precious stones were taken to Britain.
(iv) They sold their goods in India and earned huge
profits.
(v) Raw materials were purchased at very low rates
from Indians and exported to Britain.
ECONOMIC CHALLENGES ON THE EVE OF
INDEPENDENCE
(i) Indian agricultural sector was backward.
Productivity was very low. Primitive methods of
cultivation and the unjust land tenure systems were
responsible for the backwardness of agriculture.
(ii) Traditional Indian cottage industries declined due
to the economic policies of the British government.
The growth of modern industries was very slow.
(iii) A large section of the population suffered from
poverty. Starvation deaths were reported from many
places.
(iv)Unemployment was another major problem.
Large number of landless agricultural labourers
remained unemployed.
(v) Literacy rate was low, infant mortality rate
was very high and life expectancy was low.
(vi) Our occupational structure was unbalanced.
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