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Economics · Class 12 Commerce

Ch 7Indian Economy on the Eve of Independence — Class 12 Economics, concept-first.

That single remark captures how completely Britain's own fortunes depended on holding on to the Indian economy — which is exactly why this chapter, before looking at India's economy today, first asks what shape that economy was actually in on the eve of Independence, and why it was in that shape.

16

Q&A

4

Concepts

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Key concepts

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Colonial Economic Exploitation

Think of a shop where you bring your own raw materials, work all day making goods, and then the shopkeeper takes everything you made, pays you barely enough to eat one meal, and sells your goods elsewhere for a huge prof…

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Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1.1

Introduction

That single remark captures how completely Britain's own fortunes depended on holding on to the Indian economy — which is exactly why this chapter, before looking at India's economy today, first asks…

1.2

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.

1.3

Agricultural Sector

Under British rule India's economy stayed fundamentally agrarian. About 85 per cent of the population lived in villages and depended directly or indirectly on farming (see Box 1.2).

1.4

Industrial Sector

As in agriculture, India was not allowed to build a sound industrial base under colonial rule. The country's world-famous handicraft industries declined, and no modern industry was permitted to rise a…

1.5

Foreign Trade

India had been an important trading nation since ancient times. Under colonial rule, however, restrictive policies on production, trade and tariffs badly distorted the structure, composition and volum…

1.6

Demographic Condition

Detailed information about the population of British India was first gathered through a census in 1881. Though it had limitations, it exposed the unevenness of population growth.

1.7

Occupational Structure

The occupational structure describes how the working population is distributed across different industries and sectors. During the colonial period this structure changed very little.

1.8

Infrastructure

Under colonial rule some basic infrastructure — railways, ports, water transport, posts and telegraphs — did develop.

1.9

Conclusion

By the time India became independent, two centuries of British colonial rule had left their mark on every part of the economy, and the challenges facing the new nation were enormous.

Recap

Key points of the chapter

Exercises

+Show 16 questions16 questions
  1. Q1What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?Free
  2. Q2Name some notable economists who estimated India's per capita income during the colonial period.Free
  3. Q3What were the main causes of India's agricultural stagnation during the colonial period?Free
  4. Q4Name some modern industries which were in operation in our country at the time of independence.Preview
  5. Q5What was the two-fold motive behind the systematic de-industrialisation effected by the British in pre-independent India?Preview
  6. Q6The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of your answ…Preview
  7. Q7What objectives did the British intend to achieve through their policies of infrastructure development in India?Preview
  8. Q8Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.Preview
  9. Q9What do you understand by the drain of Indian wealth during the colonial period?Preview
  10. Q10Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?Preview
  11. Q11Give a quantitative appraisal of India's demographic profile during the colonial period.Preview
  12. Q12Highlight the salient features of India's pre-independence occupational structure.Preview
  13. Q13Underscore some of India's most crucial economic challenges at the time of independence.Preview
  14. Q14When was India's first official census operation undertaken?Preview
  15. Q15Indicate the volume and direction of trade at the time of independence.Preview
  16. Q16Were there any positive contributions made by the British in India? Discuss.Preview