Indian Economy Before Independence I

Indian Economy Before Independence:

• India was under British Colonial Rule for more than two centuries before getting the Independence on 15th August 1947.
• The Main of the British Rule was to confine India for being a supplier of Raw materials to Britain industrial Base. 
• India has independent economy before Colonial rule and experienced low level of economic development under British colonial rule.

AGRICULTURE & HANDICRAFTS:

• Agriculture was the main source of income during colonial rule, 85% of the population lived by Agriculture. 
• Agriculture productivity got decreased due to low levels of technology, lack of irrigation facilities, negligible use of fertilizers, it experienced some growth due to expanding of aggregate area under cultivation.
• Agriculture has seen an stagnation due to ZAMINDARI system implemented in the Eaastern states, Bengal. 
• Profits went to zamindars rather than cultivators, the main mitive of the zamindari system was to collect rents regardless of economic condition of Cultivators.
• Revenue settlement was the main reason for the zamindars attitude in collecting rents.The zamindars was supposed to deposit specified sum of  amounts on specified period failing which they have to lose their power/ rights.
• Farmers started producing commercial crops which were exported to British industries which resulted in some progress in irrigation
• In addition to agriculture many of them was involved in manufacturing activities such as handicrafts.
• Handicrafts made in india was well known for high quality Cotton & Silk Textile,Metal works and precious stone works which acquired a world wide market reputation.

TEXTILE INDUSTRIES IN BENGAL:

• Textile industries in Bengal were well known for  cotton textile known as MUSLIN. The finest quality of Muslin is known as MALAMAL--MALAMAL SHAHI/MALAMAL KHAS which implies ROYALTY.

ECONOMIC POLICIES DURING BRITISH RULE:

• The Economic policies in india during Colonial Rule were most concerned about Protection and Promotion of Policies of Britain.

• They implemented the policies, which transformed india into Raw material supplier and customer of finished goods from Great Britain.
• They never made an attempt to calculate the National/Per capita income of India.
• However some of the estimators Dadabhai Naoroji, William Digby, VKRV Rao, RC Desai, Findlay shrias  made attempts which were not fruitful.
• Estimates proposed by VKRV Rao considered very significant.