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Indian Economy on eve of independence - 1 | Class 12 Indian Economy (2024-25) | CA Parag Gupta

CA Parag Gupta・2 minutes read

The Indian Economy chapter delves into pre-independence economic conditions, highlighting the impact of British rule on transforming India into a raw material supplier. It discusses key indicators like national income and per capita income, emphasizing the stagnant growth and challenges in the agriculture sector due to commercialization and neglect of technical education.

Insights

  • The British economic policies during their rule in India aimed at exploiting the country for raw materials and as a market for British goods, significantly impacting India's economic landscape.
  • The introduction of the Zamindari system by the British led to exploitation of farmers, lack of agricultural development, and a shift towards cash crops, ultimately contributing to stagnation and food shortages in the agriculture sector.

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Recent questions

  • What were the economic conditions in India before British rule?

    Indian economy was prosperous, agrarian, and known for handicrafts.

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Summary

00:00

Indian Economy: Pre-Independence Prosperity and Transformation

  • Indian Economy is the 40th chapter in Economics, covering three units.
  • The first unit, "Indian Economy on the Eve of Independence," discusses pre-independence economic conditions.
  • The economy was prosperous, agrarian, and known for its handicraft industry before British rule.
  • British economic policies aimed at their own interests, transforming India into a raw material supplier and consumer of British goods.
  • National income and per capita income are crucial indicators of economic conditions.
  • The British did not make sincere efforts to estimate national income, but individuals like Dada Bhai Nairoji and Dr. Rao made attempts.
  • Dr. Rao's estimates are considered significant in economic analysis.
  • During the first half of the 20th century, real output growth was less than 2% annually.
  • Per capita output growth was even lower, at around 5%.
  • Understanding these economic indicators is essential for comprehending India's economic history.

20:24

"Indian Economy: Pre-Independence Agriculture Stagnation"

  • The doctor will ask about the most significant result and the rates of real and capita output increase.
  • The chapter is titled "Indian Economy on the Eve of Independence," focusing on the country's situation at independence.
  • The chapter discusses the conditions of the agriculture, industrial, and trade sectors.
  • The agriculture sector was unsatisfactory before British colonial rule, with 85% of the population living in villages and dependent on agriculture.
  • Despite many people engaged in agriculture, the economy was not self-sufficient in food and raw materials for industry.
  • Stagnation in the agriculture sector is explored, with a focus on reasons for slow growth.
  • The introduction of the Zamindari system by the British involved landlords collecting profits from farmers as rent.
  • The landlords' main focus was collecting rent, with fixed dates for depositing it, failing which led to losing rights.
  • The Zamindars did not contribute to improving the condition of agriculture.
  • Commercialization of agriculture, focusing on producing crops for sale in the market, is another reason for stagnation.

39:40

British Encouraged Cash Crops, Caused Famine

  • British forced farmers to produce crops for self-consumption rather than selling in the market
  • Farmers were enticed with higher prices by the British to grow cash crops like cotton and jute
  • Higher prices attracted farmers to produce cash crops instead of food crops
  • Many farmers had to buy their food from town due to the shift towards cash crops
  • Commercialization led to a shortage of food crops, prompting famines
  • Subsistence Farming was impacted by the lack of resources and motivation for investment
  • Zamindars and Britishers neglected technical education for farmers, leading to low productivity in agriculture sector
  • Partition resulted in the loss of highly fertile land to Pakistan and Bangladesh, affecting jute production areas
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