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Exercises · Q6

Q.Distinguish between the colonial Indian economy and the Indian economy after Independence (any four points).

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The colonial Indian economy and the Indian economy after Independence differed fundamentally in their structure, purpose and direction, even though both inherited the same land and population. Several points of contrast stand out.

First, control over economic decision-making: under colonial rule, key economic policies (tariffs, land revenue, infrastructure priorities) were set by the British administration to serve British commercial interests, whereas after Independence, these decisions were made by an Indian government answerable to Indian citizens.

Second, the underlying purpose of economic activity: the colonial economy functioned largely as a 'feeder economy,' supplying raw materials to Britain and absorbing British manufactured goods, whereas the post-Independence economy was explicitly organised around the objectives of growth, modernisation, self-reliance and equity.

Third, the pattern of industrial development: colonial industrial growth was narrow and lopsided, concentrated in a few sectors like cotton and jute textiles serving colonial trade needs, whereas post-Independence planning deliberately promoted broader industrialisation, including a strong push toward heavy and basic industries under the Second Five Year Plan. …

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