Q.Describe the main features of the Indian economy at the time of Independence.

At Independence, India had a stagnant agrarian economy, de-industrialised handicrafts, and very low income/literacy — shaped by nearly 200 years of colonial exploitation.

1. Low level of economic development / low per-capita income — decades of colonial rule had left national and per-capita income extremely low by world standards.
2. Stagnant, backward agricultural sector — agriculture employed the vast majority of the workforce but suffered from low productivity, due to the prevailing land-tenure (zamindari) system and lack of investment.
3. De-industrialisation of traditional handicrafts — Britain's deliberate policies (heavy duties on Indian goods, free entry for British manufactures) destroyed India's famous traditional handicraft industries (e.g. textiles) without building modern industry to replace them.
4. 'Colonial feeder/drain economy' — India functioned mainly as a supplier of cheap raw materials to Britain and a captive market for British finished goods, with a 'drain of wealth' flowing out of India. …