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Indian economy on the eve of independence in One Shot | Economics Class 12th | Commerce Wallah by PW

Commerce Wallah by PW・140 minutes read

The chapter discusses Indian Economics on the eve of Independence, highlighting the impact of British rule on agriculture, industries, and economy. British colonization led to exploitative systems like the Zamindari system, shifting farmers from subsistence to commercial farming for cash crops, resulting in economic hardships and a decline in self-sufficiency.

Insights

  • The Zamindari system introduced by the British exploited farmers, leading to debt, poverty, and economic decline in India.
  • British colonial rule forced Indian farmers to shift from subsistence farming to cash crop cultivation for export, impacting agriculture negatively.
  • The British suppression of Indian industries and imposition of discriminatory tariffs led to the decline of the industrial sector and increased dependence on imports.
  • Improved healthcare facilities and medical advancements post-independence contributed to a significant increase in life expectancy in India.

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Recent questions

  • What was the impact of British colonization on Indian agriculture?

    The British colonization of India had a detrimental impact on Indian agriculture. The introduction of the Zamindari system led to the exploitation of farmers by landlords, resulting in high rents, debt, and poverty. Farmers were forced to grow cash crops like cotton and indigo for export, neglecting food crops for local consumption. Lack of irrigation facilities, modern technology, and access to fertilizers hindered agricultural growth. The Zamindari system created a cycle of debt and poverty for farmers, contributing to the economic decline of India during British rule.

  • How did British rule affect Indian industries?

    British rule negatively impacted Indian industries by suppressing the flourishing handicraft industry and promoting agriculture for raw material production. The British aimed to control India by eliminating industries and importing finished goods from Britain. Discriminatory tariff policies favored British goods over Indian products, hindering the growth of modern industries in India. The overall impact was a decline in Indian industries, a shift towards raw material export, and finished goods import, leading to economic exploitation and loss of self-sufficiency.

  • What were the consequences of the Bengal Famine of 1769-70?

    The Bengal Famine of 1769-70 resulted in the deaths of many due to hunger and starvation, marking the beginning of severe food crises during British rule in India. Approximately 85 million people died due to repeated famines in India from 1760 to 1943. The British colonization led to a significant food crisis, with famine-related deaths decreasing after India gained independence in 1947. The loss of rich food-producing areas due to the partition of India and Pakistan exacerbated the food crisis in India.

  • How did the British aim to control India's foreign trade?

    The British aimed to control India's foreign trade by establishing a monopoly on raw materials and finished goods. They imposed discriminatory tariff policies that favored British goods over Indian products, making imports cheaper and exports more expensive. The British controlled over 50% of India's raw materials, exporting excess to Britain and limiting sales to other countries. The surplus trade profits were misused by the British for administrative expenses and military strengthening, neglecting public welfare and hindering India's development.

  • What were the key features of the Zamindari system introduced by the British?

    The Zamindari system introduced by the British established a triangular relationship among the British Government, landlords (Zamindars), and farmers. Landlords were recognized as the permanent owners of the soil and exploited farmers to generate revenue. They kept a portion of the revenue for themselves and paid a fixed sum as land revenue to the British Government. Landlords had the freedom to extract as much revenue from farmers as they desired, focusing on maximizing revenue collection. This system led to a cycle of debt and poverty for farmers, impacting agriculture and the overall economy negatively.

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Summary

00:00

Indian Economics on the Eve of Independence

  • The chapter is about Indian Economics on the eve of Independence, discussing the conditions before and after British rule.
  • The majority of the population was engaged in agriculture for survival and employment generation.
  • Crops were grown for self-consumption, known as subsistence farming, with no commercial purpose.
  • India was renowned for its handicraft industries, producing handcrafted products that were exported worldwide.
  • Peaceful trade between Asia and Europe was prevalent, with significant export-import activities.
  • Colonial rule is defined as one country ruling over another, making all decisions for the enslaved country.
  • Stagnant economy refers to a lack of growth or development in a country, as seen during British rule in India.
  • The chapter delves into topics like agriculture, industrial sector, feminism, partition impact, foreign trade, and infrastructure.
  • The positive impact of British rule in India and the significance of the Suez Canal are discussed.
  • India gained complete independence in 1950, three years after the official independence in 1947, marking the Republic Day on 26th January.

13:45

British Colonialism: Impact on Indian Economy

  • Before the British arrived, India was a prosperous country with a thriving trade industry, including exports and imports.
  • The British colonization led to the exploitation of India's resources, resulting in a decline in the country's economic prosperity.
  • The British introduced the Zamindari system, where landlords were appointed to collect fixed rents from farmers, leading to the exploitation of farmers.
  • Under the Zamindari system, farmers were burdened with high rents and faced severe consequences if they couldn't pay, often resulting in debt and even suicide.
  • The British government benefited from the land revenue collected by landlords, leaving farmers in dire financial situations.
  • The Zamindari system, also known as the land revenue or tenor system, was a method of extracting wealth from India for the British government.
  • Landlords, under this system, had the power to exploit farmers and extract as much profit as possible, regardless of the farmers' well-being.
  • The system led to a cycle of debt and poverty for farmers, with little to no support from the British government.
  • The Zamindari system was a key factor in the economic decline of India during British rule, impacting agriculture and the overall economy negatively.
  • Understanding the impact of the Zamindari system is crucial to comprehending the challenges faced by India during British colonization.

25:52

Exploitative Zamindari System in British India

  • The British Government introduced a unique system of land settlement in India known as the Zamindari system.
  • The system established a triangular relationship among the British Government, landlords (Zamindars), and farmers (tillers of the soil).
  • Landlords were recognized as the permanent owners of the soil and exploited farmers to generate revenue.
  • Landlords kept a portion of the revenue for themselves and paid a fixed sum as land revenue to the British Government.
  • Landlords had the freedom to extract as much revenue from farmers as they desired, focusing on maximizing revenue collection.
  • Landlords neglected improving agricultural conditions and ignored the plight of farmers, leading to unlimited exploitation.
  • Land revenue rates were frequently increased to generate more revenue from the land, putting pressure on farmers.
  • Farmers who were once landowners became landless laborers due to exploitation and high revenue demands.
  • Commercialization of agriculture under British rule shifted farmers from subsistence farming to commercial farming for profit.
  • Farmers were forced to grow cash crops like cotton, jute, and indigo to meet British demand for raw materials, leading to exploitation and economic hardships.

38:51

Agricultural Challenges Under British Colonial Rule

  • Cotton worth a thousand can be made from ₹1 cotton
  • Finished goods worth thousands of rupees are made from raw materials like cotton, jute, and indigo
  • British colonial rule forced farmers to grow cash crops like cotton and indigo for export
  • Lack of irrigation facilities led to low productivity in agriculture
  • Absence of modern technology like tractors hindered agricultural growth
  • Farmers had limited access to pesticides and fertilizers due to lack of awareness and affordability
  • Small and fragmented land holdings reduced productivity in agriculture
  • British government and landlords did not invest in agricultural infrastructure, leading to dependency on rainfall
  • Uncertainty in agriculture due to reliance on rainfall for irrigation
  • Exploitative practices by landlords created a significant gap between landowners and farmers, leading to financial struggles for farmers

51:08

British Colonization in India: Economic Exploitation and Impact

  • During British rule in India, there was a severe food crisis leading to famine and starvation.
  • The Bengal Famine of 1769-70 resulted in the deaths of many due to hunger and starvation.
  • Approximately 85 million people died due to repeated famines in India from 1760 to 1943.
  • After India gained independence in 1947, famine-related deaths significantly decreased.
  • The partition of India and Pakistan led to a food crisis in India due to the loss of rich food-producing areas.
  • The British colonization negatively impacted India's industrial sector by suppressing the flourishing handicraft industry.
  • The British aimed to control India by eliminating industries and promoting agriculture for raw material production.
  • The British exploited India by taking raw materials to produce goods in their country and sell them back to India.
  • The industrialization of India was hindered by the British who enforced deindustrialization to maintain control.
  • The impact of British colonization on India's agriculture and industries was detrimental, leading to economic exploitation and loss of self-sufficiency.

01:03:50

British colonial policies decimated Indian industries and economy.

  • Britishers aimed to remove industries from India to make it a raw material exporter.
  • The strategy was to export raw materials to Britain and import finished goods.
  • Discriminatory tariff policies were implemented to favor British goods over Indian products.
  • No tax was imposed on raw material exports to Britain, making it cheaper.
  • Importing finished goods from Britain incurred no taxes, making them more affordable.
  • High taxes were levied on Indian domestic products to discourage local consumption.
  • British machine-made products competed with Indian handicrafts due to quality and cost advantages.
  • The introduction of railways by the British impacted Indian industries negatively.
  • The slow growth of modern industries in India was attributed to discriminatory tariff policies.
  • The overall impact was a decline in Indian industries and a shift towards raw material export and finished goods import.

01:15:58

"Industrial Growth in Colonial India"

  • Slow growth of modern industries in India during British Raj
  • Initial stages of modern industries like Tata Iron and Steel Company in 1907
  • Cotton and Jute Textile Mills in Western India, mainly controlled by Indians
  • Tata Iron and Steel Company's contribution to railways and machinery
  • Slow opening of industries like cement, paper, and sugar post-1945
  • Lack of Capital Goods Industries in India before independence
  • Handicraft Industries destroyed by British policies pre-independence
  • Limited growth of industrial sector due to de-industrialization and discriminatory tariffs
  • Famous muslin textile industry in Bengal before British rule
  • Foreign trade under British rule: no tax on raw material exports, cheap imports of finished goods

01:29:19

Impact of British Rule on Healthcare in India

  • High taxes imposed on items worth even Rs 1,000, previously lower
  • Taxes aimed at discouraging purchases, especially related to foreign trade
  • Monopoly established by the British, controlling over 50% of India's raw materials
  • Excess raw materials exported to Britain, limited amounts sold to other countries
  • Misuse of surplus trade profits by the British, not benefiting India's development
  • Funds used for administrative expenses and military strengthening, neglecting public welfare
  • Infant mortality rate high due to poor healthcare facilities during British rule
  • Life expectancy low at 32 years during British rule, due to lack of medical advancements
  • Current life expectancy at 69 years, reflecting advancements in healthcare technology
  • Improved healthcare facilities and medical advancements leading to increased life expectancy

01:41:40

"Indian Economy: Imbalance and Growth"

  • Medical facilities in the country have improved slowly over time, leading to an increase in average life expectancy.
  • The literacy rate in the past was discussed, with a focus on female literacy being at 7 out of 16, while male literacy was at 9.
  • Gender biases in education were highlighted, with boys receiving more education than girls.
  • The concept of the "year of grade divide" in 1921 was explained, emphasizing its significance in marking the transition between stages.
  • The three stages of the year of grade divide were detailed, showcasing the evolution of birth and death rates in the country.
  • The population census in India was described as a detailed estimation of the country's population and demographic profile.
  • The first population census in India was conducted in 1881 under British rule, with subsequent censuses occurring every 10 years.
  • The occupation structure on the eve of independence was discussed, highlighting the dominance of the agriculture sector and the underdevelopment of the industrial and service sectors.
  • Unbalanced growth in the economy was explained, with a focus on the disproportionate development of sectors, particularly the agriculture sector.
  • The conclusion emphasized the imbalance in growth in the Indian economy at the time of independence, attributing it to the dominance of the agriculture sector and the underdevelopment of other sectors.

01:54:29

British Colonial Impact on Indian Infrastructure

  • Railways were introduced in India by the British in 1850, allowing for the transportation of raw materials and finished goods.
  • The British brought railways to India to facilitate the export of raw materials to Britain and the import of finished goods back to India.
  • Roads were developed in India primarily for military purposes and the transportation of raw materials and goods.
  • The lack of all-weather roads in rural areas led to significant challenges during natural calamities for the people living in villages.
  • Seaports in India were initially underdeveloped, serving the British interests in exporting raw materials and importing finished goods.
  • The communication system in India was revolutionized by the British through the introduction of the postal and telegraph services.
  • The telegraph system, though beneficial, was made expensive by the British to limit its accessibility to the Indian population.
  • The British rule in India led to a stagnant economy, with no growth, increased poverty, and a dominance of agriculture through exploitative systems like zamindari.
  • Industries in India were exploited by the British, leading to heavy dependence on imports, particularly from Britain, and a decline in urbanization.
  • The British rule in India resulted in a semi-feudal economy, characterized by mixed ownership between the government and private individuals.

02:06:24

Evolution from Subsistence to Commercial Farming

  • Subsistence farming was prevalent before commercial exploitation and money obsession took over.
  • Transition from self-made goods in subsistence farming to commercial farming for selling purposes.
  • Introduction of money transactions replaced the barter system in commercial farming.
  • British colonization led to the growth of cash crops in the country.
  • Establishment of the Swiss Canal reduced transportation costs for Britain and facilitated direct trade with India.
  • The British government gained a monopoly on Indian foreign trade due to reduced transportation expenses.
  • The British government controlled Indian foreign trade, monopolizing the market and influencing the flow of raw materials and finished goods.
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