CBSE CLASS 12 ECONOMICS

2.  Indian Economy prior to Independence
 And Just after Independence
 The current Status of India with
economic factors social factors.
 Factors that led to the
underdevelopment of the Indian
economy and
 Stagnation of the Indian Economy

3.  • Low level of Economic Development under
the Colonial Rule.
 • Agricultural Sector
 • Industrial Sector
 • ForeignTrade
 • Demographic Condition
 • Occupational Structure
 • Infrastructure

4.  Prosperous Economy-
 Golden Sparrow-
▪ Gold was first found in the lands of India,
ExportGold Raw material precious stones.
 (contribution 24.4%World economy (before
1700) )

5.  Agrarian Economy-Non
commercialized
 consisted of backward,
 isolated but self sustaining,
 Well Known Handicraft Industries-
Raw Cotton, Indigo, Silk etc.

6.  The primary objective of British Colonial rule
in India was to turn India – As a supplier of
raw material and – As a consumer of finished
good

7. ⋆ Protection and promotion of the
economic Interests of their home
country.
⋆ The raw materials in India were
exported to Britain and thus turned
India to a market for the finished
goods produced in Britain.
The characteristics of the economic policies
adopted by the colonial government are:

8. (i) Low level of economic development
The colonial government, never made
any sincere attempt to estimate India’s
National and Per Capita Income.
* growth of GDP was only 2%
* the growth of per capita output was
just 0.5 percent.

9.  1.Dadabhi Naoroji
 2.William Digby
 3.Findlay Shirras
 4.R.C.Desai
 5.V.K.R.V.Rao

10. (Vijayendra Kasturi Ranga Varadaraja Rao:
1908 –1991)
considered as very significant in the estimate of the
national and per capita income during colonial
period
The study of V. K. R. V. Rao

11. About 85% of the country’s population
lived in villages and lived on agriculture.
Agricultural sector continued to
experience stagnation. Reasons:
1. Land Settlement System –
⋆ Zamidari system,
⋆ Mahalwari system,
⋆ Ryotwari system.
AGRICULTURAL SECTOR

12. ⋆ meaning-production of crops for sale in
the market rather than for self
consumption.
⋆ Food crops to cash crops
2. Commercialization of Agriculture-

13. ⋆ Use of outdated technology
⋆ Lack of irrigation facilities
⋆ Negligible use of fertilizers
3. Law level of Production:

14. ⋆ Major portion of higherly irrigated and
fertile land went to Pakistan.
⋆ Almost whole of jute producing area
became part of east Pakistan
(Bangladesh).
Before this India enjoyed a world
monopoly in Jute goods industry.
3. Adverse Effects of Partition:

15. ⋆ Less developed Industrial sector:
De-industrialisation - decline of Indian
handicraft industry.
⋆ Capital good industries were lacking
⋆ Limited operation of public sector
INDUSTRIAL SECTOR

16. Jamsetji Tata was an Indian pioneer industrialist,
who founded the Tata Group, India's biggest
conglomerate company.

17. ⋆Unfavourable foreign trade
⋆ Net exporter of raw material and importer of
finished good.
⋆ Britain had monopoly control on foreign
trade.
⋆ Drain of India’s wealth
FOREIGN TRADE

18. DEMOGRAPHIC CONDITIONS
⇨ Adverse demographic condition
⇨ High death rate - 40 per thousand
⇨ High infant mortality rate - 218 per thousand.
⇨ Mass Illiteracy - 83% illiterate.
⇨ Low life expectancy - 32 years
⇨ Low standard of living - people used to spend
80% to 90% of their income on basic needs.

19. STRUCTURE OF EMPLOYMENT
⇨ More dependence on primary sector
⇨ Largest share of work force which
was 72% was engaged in agriculture.
⇨ 10% manufacturing while 18%
workforce were engaged in service
sector.

20. 72%
10%
18%
Agriculture
sector
Industrial sector

21. INFRASTRUCTURE
⇨ Under developed infrastructure
 Absence of Good Roads
 Electricity Generation
 Lack of Health Facilities
 Education and Communication.

22.  some efforts have been made to
develop basic infrastructure like roads,
railway, ports, water transport, post &
telegraph by the British rulers.
 The main motive was not to
provide basic amenities to the Indian
people but for their colonial interest.

23. 1. Provide transport facilities, largely in terms of
railway.
2. Development of ports.
3. Provision of post and telegraph service.
4. British Govt. left a base of a strong and efficient
administrative set up.
Positive Side-effects of
The British Rule In India

24. FIRST RAILWAY LINE
The British introduced the railways in India in 1854.
The first railway line was made to connect Bombay
withThane

25. Essential features of Indian Economy on the
eve of Independence
(i) Low level of economic development
(ii) Backward agricultural sector
(iii) Less developed Industrial sector
(iv) Unfavourable foreign trade
(v) Adverse demographic condition
(vi) Under developed infrastructure
(vii) More dependence on primary sector

26. To get raw materials from India at
cheap rates to be used by upcoming
modern industries in Britain.
To sell finished products of British
industries in Indian market at higher
prices.
Two Fold Motive Behind the
De-industrialization were

27.  To make payments for expenses
incurred by an office set up by the
colonial government in Britain.
 To meet expenses on war fought
by the British government.
 To import invisible items.
Drain of Wealth