Indian Economy on the Eve of Independence Class 11 Notes: CBSE Economics (Indian Economic Development) Chapter 1

Indian Economy on the Eve of Independence:

On the eve of independence, the Indian economy was in a fragile state. The country had faced centuries of colonial exploitation, leaving its agriculture stagnant, industries underdeveloped, and infrastructure in poor condition. Most of the population depended on agriculture, which was largely inefficient and unable to meet the needs of the people. Industries were limited, and whatever existed was primarily geared towards serving the interests of the British. The overall economic situation was marked by widespread poverty, low productivity, and a lack of modern infrastructure. This challenging economic backdrop set the stage for the efforts to rebuild and develop the nation after gaining independence.

Colonial Rule Resulted in Low-Level Economic Development:

• Prior to the arrival of British rule, the Indian economy was self-sufficient.

• Agriculture was the main source of livelihood, still the economy was influenced by various other activities like: Handicraft industries in the fields of silk and cotton textiles, metals and precious stone works, etc.

• Since high-quality materials were employed and a high standard of craftsmanship was evident in all Indian imports, Indian products had a global market.

• The economic policies of the colonial government were highly influenced by the self-centred economic interests.

• No sincere attempt was made by the colonial government to estimate India's national and per capita income.

• The notable estimators during that time were: Dadabhai Naoroji, William Digby, Findlay Shirras, V. K. R. V. Rao and R.C Desai. V. K. R. V. Rao's estimates were considered very significant at that time.

Conditions of Various Sectors of the Economy on the Eve of Independence.

Agriculture Sector

• Around 85% of the Indian population was dependent on agriculture during colonial rule.

• Agricultural productivity became low. The  sector experienced some growth due to various systems of land settlements which led to expansion of aggregate area under cultivation. 

• High yield of cash crops in country's certain areas was observed due to commercialisation of agriculture.

• There was little progress in irrigation still the sector suffered due to lack of investment in terracing, flood control, drainage and desalination of soil.

Industrial Sector

• The colonial rule did not allow the industrial base to grow in India for their own personal economic interests.

• They want India to remain a exporter of important raw materials so that they could set up modern industries in Britain.

• They also wanted to turn India into a market for finished products by their industries.

• The indigenous handicraft industries began to decline and this created huge unemployment in India.

• The roots of modern industry started to grow in India during the second half of the 19th century but the progress remained very slow.

• The cotton textile mills were concentrated in western parts of the country that is Maharashtra and Gujarat whereas the jute mills were located in Bengal.

Foreign Trade

• The structure, composition and volume of India's foreign trade was adversely affected by the restrictive policies of the commodity production, trade and tariff of the colonial government.

• Primary products such as silk, cotton, wool, sugar jute, Indigo were exported from India.

• Foreign trade was largely restricted to Britain, with only a handful of countries such as China, Sri Lanka, and Persia (Iran) being permitted.

• The Indian economy was gravely exploited by the British government which led to the drain of Indian wealth.

Demographic Condition

• The population growth in India was uneven.

• Census operations were conducted every ten years.

• Overall literacy marked less than 16% whereas the indicators of women literacy were as low as 7%. This clearly reflects the social and educational backwardness of the country.

• Overall mortality rate was high due to frequent breakouts of water and air borne diseases and unavailability of adequate health facilities.

• Low life expectancy existed with an alarmingly high infant mortality rate.

Occupational Structure.

• The largest share of the workforce was occupied in the agriculture sector at around 70-75% whereas manufacturing and services sector accounted for around 15 to 20%.

• Aside from it, 17.2% of the working population was employed in the service or tertiary sectors of the economy. On the eve of independence and thereafter, this offered sluggish expansion to the Indian economy's tertiary or service sector.

• The Indian economy eventually grew out of control just before Independence, with an uneven distribution of wealth.

Infrastructure

• The basic infrastructure such as railways, ports, water transport etc started developing during the colonial regime.

• This development was observed because that would serve colonial interests.

• Poor quality roads existed before the colonial government. Railways were introduced by the British in 1850 and this expanded India's exports.

• Rather than accelerating the development and growth of the Indian economy, the Colonial government's primary goal was to promote the British government's interests.

• Additionally, the barter system of trading gave way to a monetary system of exchange based on the usage of money. This aided the Indian economy's division of labour and large-scale production.

By the time India gained its independence each and every sector of the economy was saddled. There were huge challenges before the government that required immediate attention. What we inherited was a crippled economy.

5 Important Topics of Class 11 Economics Chapter 1 Indian Economy on the Eve of Independence

Importance of Economics Chapter 1 Class 11 Indian Economy on the Eve of Independence Notes

• Revision notes help students understand the key aspects of improving life in rural areas.

• They save time by focusing on essential information and skipping unnecessary details.

• These notes simplify complex topics, making them easier to understand and use.

• It teaches how colonial rule affected India's agriculture, industry, and overall economy.

• Revision Notes explains the economic challenges that shaped India's early policies after independence, helping students understand the reasons behind those decisions.

• They increase confidence by clearly understanding what to expect in exams.

Tips for Learning the Class 11 Economics Chapter 1 Indian Economy on the Eve of Independence Notes

• Start by understanding the key terms and concepts related to the economy during the colonial period. This will make the rest of the chapter easier to follow.

• Focus on how agriculture, industry, and trade were impacted by British rule. Knowing these details will help you understand the overall economic condition.

• Compare the pre-independence economy with the current Indian economy to see the progress and challenges that have shaped modern policies.

• Look at the demographic conditions, including population growth and literacy rates, and understand how these factors influenced the economy on the eve of independence.

Conclusion:

Vedantu’s class 11 Economics Chapter 1 notes provide a clear understanding of the economic conditions India faced just before independence. They highlight the impact of colonial rule on agriculture, industry, and trade, helping students grasp the challenges that shaped India's early economic policies. By simplifying complex concepts and offering a detailed overview, these notes make it easier to review and prepare for exams. Exploring these notes will strengthen your knowledge and give you a solid foundation for further studies in economics.

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