The chapter offers some basic information to the student of class XI about the state of the Indian economy on the eve of independence. It describes the Indian economy as we inherited from the British in 1947. It focuses on two basic questions: Was it a stagnant or a vibrant economy Was it a backward or a developing economy
These questions are addressed basically through a preliminary investigation related to the performance of different sectors of the Indian economy, including the agricultural sector industrial sector, and foreign trade sector. We also attempt a brief description of certain critical indicators occupation structure and economic and social infrastructure power-point of our discussion on the basis of which we shall conclude whether the Indian economy as we inherited from the British was a backward or a developing economy and whether it was stagnant or a vibrant economy.
Demographic conditions during the British rule exhibited all features of a stagnant and backward economy. Both birth rate BR and death rate DR were very high-nearly 48 and 40 per thousand respectively. High BR and DR suggest a state of massive poverty in the country. Literacy Rate refers to those who can read and write was nearly 16 percent, reflecting social backwardness as a reflection of economic backwardness. The female literacy rate was still worse-only 7 percent. This indicated gender bias in society.
Certainly not, if the impact of the British rule is studied with motive was clear and focused: it was colonial exploitation of the Indian economy. However, the means to achieve the end yielded some positive side-effects as under:
Commercial agriculture which existed only as a conceptual possibility prior to British rule started showing green shoots. It implied a good breakthrough as it started changing the outlook of farmers: farming gradually came to be accepted as a profitable venture rather than merely a means of subsistence.
Five Years Plans in India: Goals and Achievements
The previous chapter concluded that the economy that we inherited from the British was backward and stagnant. Agriculture was the principal source of subsistence for the bulk of the population. Secondary and tertiary sectors of the economy were relatively insignificant. A large percentage of the population was reeling under abject poverty. Life expectancy was extremely low.
Life, in general was driven by the instinct to survive, lacking any initiative to grow and prosper.
