Economics · Ch 9 — Indian Economy on the Eve of Independence
Low Level of Economic Development under the Colonial Rule
Low Level of Economic Development under the Colonial Rule
Before the British arrived, India had an independent, self-reliant economy. Farming was the main livelihood for most people, but the economy also supported a wide range of manufacturing. India was especially famous for its handicrafts — cotton and silk textiles, work in metal and precious stones — which enjoyed a worldwide market thanks to their fine materials and outstanding craftsmanship (see Box 1.1).
Box 1.1: Textile Industry in Bengal
Muslin is a type of cotton textile that had its origin in Bengal, particularly in and around Dhaka (spelled during the pre-independence period as Dacca) — now the capital city of Bangladesh. 'Daccai Muslin' had gained worldwide fame as an exquisite type of cotton textile. The finest variety of muslin was called malmal; foreign travellers sometimes also referred to it as malmal shahi or malmal khas, implying that it was worn by, or fit for, royalty.
How colonial policy changed the economy
- The economic policies of the colonial government were designed to protect and promote Britain's interests, not to develop India.
- These policies transformed India's economic structure: the country was turned into a supplier of raw materials and a buyer of Britain's finished industrial products.
No serious measurement of income
- The colonial government never made an honest attempt to estimate India's national or per capita income. …