CLASS 12 /CHAPTER -1/IIndian economy on the eve of independence / 2x +2x one-shot/by AI/

Indian Economy on the Eve of Independence Introduction Before independence in 1947, the Indian economy was controlled by British rule for about 200 years. The British policies mainly aimed at benefiting Britain, not India. As a result, India remained poor, backward, and underdeveloped. 1. Low Level of Economic Development India’s national income growth was very slow. Per capita income was extremely low. Agriculture was the main occupation but productivity was poor. Industrial development was weak. 2. Agricultural Sector Main Features About 70–75% of people depended on agriculture. Farming used old techniques and tools. Low productivity and frequent famines occurred. Land Revenue Systems The British introduced exploitative land systems: System Area Feature Zamindari System Bengal, Bihar Zamindars collected rent from farmers Ryotwari System Madras, Bombay Farmers paid tax directly to government Mahalwari System Punjab, UP Village headmen collected revenue Problems High land taxes Lack of irrigation No investment in agriculture Farmers became poor and indebted 3. Industrial Sector Condition of Industries India was famous for handicrafts before British rule. British policies destroyed local industries. Machine-made British goods replaced Indian products. Reasons for Decline Cheap imports from Britain Heavy taxes on Indian goods Lack of modern technology Some Modern Industries Developed Cotton textile industry Jute industry Iron and steel industry But industrial growth remained limited. 4. Foreign Trade Main Features India exported raw materials: cotton jute tea indigo India imported finished goods from Britain. Result India became: supplier of raw materials market for British products Trade benefited Britain more than India. 5. Demographic Condition Poor Social Indicators High birth rate and death rate Very low life expectancy (around 32 years) High infant mortality rate Widespread poverty and illiteracy Literacy Rate Around 16% only. 6. Occupational Structure Most people worked in: Agriculture → about 70% Manufacturing → very low Services → limited This showed lack of industrialization. 7. Infrastructure Positive Developments British introduced: Railways Ports Roads Telegraph But Main Purpose These were developed mainly to: transport raw materials expand British trade strengthen administration Conclusion At independence, India faced: poverty unemployment low industrial growth backward agriculture poor infrastructure The country needed planned economic development after 1947. Important Exam Points Causes of Backwardness Colonial exploitation Destruction of handicrafts Poor agricultural policies Lack of industrialization Key Statistics Literacy rate: ~16% Life expectancy: ~32 years Agriculture employment: ~70%