2. Synopsis
1. Before the British Rule
2. During the British Rule
3. Components of Indian Economy
4. Agricultural Sector in India During Colonial Rule
5. Industrial Sector in India During Colonial Rule
6. Foreign Trade in India During Colonial Rule
7. Demography in India During Colonial Rule
8. Occupational Structure in India During Colonial
Rule
9. Infrastructure in India During Colonial Rule
10. Positive Impacts of British Rule in India
3. Before the BritishRule
• India had an independent, self-reliant and prosperous economy.
• Colonial rule India existed over nearly 200 years till India gained
independence on August 15,1947.
• During 18th century India was an agrarian economy.
• India was also known for its developed handicraft industries, like
cotton and silk textiles, metal industries, precious stone works,
gold and silver jewellery.
• These industries had fine quality and high standards.
4. During The BritishRule
• Colonial Government followed
policies of protection &
promotion.
• This transformed India as a
supplier of raw materials as well
as consumer of finished products
from Britain.
• Colonial Government never
estimated India’s national and
per capita income.
• Estimates by V.K.R.V. Rao
6. Agricultural Sectorin India During ColonialRule
• Agrarian: 85% of the population lived in villages.
• Agricultural Productivity: Remained very low.
• Stagnation: Various land settlement system led to no investment in
agriculture and all profits went to Zamindars.
• Revenue Settlement Terms: If Zamindars failed to deposit fixed revenue on
the
specific date, then they would loose land rights.
• Lack of modernisation: No irrigational facilities were available, farmers
depended on monsoon for crops.
• Commercialisation of Agriculture: Britishers forced farmers to grow cash
crops particularly Indigo, which spoiled their lands.
7. Industrial Sector in IndiaDuring ColonialRule
• Deindustrialisation: Britishers reduced India’s status as raw material
supplier and turned it into a sprawling market for British industries
finished products.
• Decay of indigenous handicraft industries.
• Slow progress of modern industries like TISCO in 1907.
• Lack of capital goods industry for producing machine tools.
• Growth rate of the new industrial sector and its GDP contribution
remained small.
• Limited public sector operations which remained confined to
railways, communication, power, ports, etc.
9. ForeignTradein IndiaDuring ColonialRule
• Restrictive policies of production, trade and tariff by
Colonial Government adversely affected India’s Foreign
trade.
• Reduced status of India as an exporter of raw
material and importer of finished goods.
• Monopoly control by Britain over India’s exports and
imports.
• Suez Canal intensified British control over India’s
Foreign trade.
• Misuse of large export surplus (exports were more
then imports) by Britishers even when India had
limited food grains for self consumption, which led to
the drain of Indian wealth.
10. Demographyin IndiaDuring ColonialRule
• First population census of British India was
conducted in 1881.
• 1921 is the year of Great Divide, as low death rate
was noticed after that year.
• Literacy rate was less than 16%.
• Inadequate public health facilities.
• Infant Mortality rate was high.
• Life expectancy was low at 32 years.
• Extreme poverty existed.
11. OccupationalStructure in India During Colonial Rule
• Occupational structure means the
distribution of working persons
across different economic sectors.
• Economic sectors comprises of
Primary Sector, Secondary Sector
and Tertiary
Sector.
• Madras Presidency, Bombay and
Bengal witnessed a decline in
agricultural sector and increase in
manufacturing and service sector. Image by:
12. Infrastructurein IndiaDuring ColonialRule
• Infrastructure is the basic physical and organizational facilities, which includes
buildings, roads, power supplies, etc.
• Roads constructed was primarily to use the army and raw materials within India to send
them in England via railway or port.
• British introduced the railways in India in 1853 to enable people to undertake long
distance travel.
• Railways also increased commercialisation of Indian agriculture.
• Some measures were taken to develop Inland trade and sea lanes but inland
waterways proved to be costlier.
• The introduction of the expensive system of electric telegraph in India, served the
purpose of maintaining law and order.
13. Conclusion
Constant per capita income over a long period of time
Heavy dependence on Agricultural sector
The zamindary system
Traditional method of cultivation
High Frequency of famine
Destruction of Indian handicrafts and traditional industries
Inadequate industrialization
POSITIVE EFFECT OF BRITISH RULE
Better means of transportation
Administrative set up
