INDIAN ECONOMY AT THE TIME OF INDEPENDENCE.pptx

CHAPTER-1-XII-ECONOMICS-CBSE

1. Q.1 What was the state of the industrial sector under British rule? Answer Explanation Similar to the agriculture sector in India, the industrial sector also did not see much growth and development. Following were the major reasons that were responsible for a bleak growth of the industrial sector:   Systematic de-industrialisation   The primary motive of Britishers behind de-industrialisation was two-fold. (i) To make India a net exporter of raw materials to the British industries at a cheap rate. (ii) To sell British products at a higher rate in the Indian market. The Britishers followed discriminatory tariff policy. Discriminatory tariff policy signifies free export of raw materials from India, import of finished products from Britain, and a heavy duty on export of Indian handicrafts.   Lopsided modern industrial structure British rulers never permitted modernisation nor did they encourage the growth of industries. The unbalanced and lopsided growth structures were a legacy of British rule in India. In 1850-55, the first cotton mill, jute mill, and coal mine were established. By the end of the 19th century, 194 cotton mills and 36 jute mills were located in the western part of the country (Maharashtra and Gujarat). Lacking capital goods industry Capital goods industry refers to the industry that produces goods such as machines, tools, and more that are further capable of producing consumer goods. The primary objective of the British rulers was to develop such an industry in India that would never be able to compete with the British industry. They want to make the Indian industry dependent upon the British industry for capital goods.

2. India’s Demographic Profile A demographic condition during the British rule exhibited the following features of stagnant and backward Indian economy: Low literacy rate ●   The overall literacy level was less than 16% which increased to 74.04% in 2011. ●  Out of this, the female literacy level was negligible, about 7%. Low standard of living ●   At the time of independence, the people used to spend 80% to 90% of their income on basic necessities, i.e., food, clothes, and shelter. ●   This was not adequate for the satisfaction of their needs. ●   Some parts of India were severely affected by severe famines and millions died. ●  The worst famine in India was the Bengal famine of 1943 when three million people died. High birth and death rate ●   Birth rate: It refers to the number of children being born per thousand in a year. ●   Death rate: It refers to the number of people dying per thousand in a year. ●  Both birth rate and death rate were very high. Poor health facilities ●   There was a lack of public health facilities for the majority of the population. ●  As a result, there were widespread water and air-borne diseases. High infant mortality rate ●   It refers to the number of infants dying before reaching the age of one year per 1,000 live births. ●   Lack of adequate public health facilities, the occurrence of frequent natural calamities, and famine resulted in widespread poverty and high infant mortality rate. ●  It was quite alarming, about 218 per thousand. Low life expectancy ●   It refers to the average life of a person. ●  It was very low for around 32 years.