Indian Economy on the Eve of Independence

Lesson

Part 1 — why colonial rule shaped the economy as it did, and the state of agriculture and industry in 1947.

In this lesson you will

Explain the economic aims of colonial rule and why income grew so slowly
Explain the causes of agricultural stagnation, including land settlement and commercialisation
Explain de-industrialisation and the limits of modern industry in 1947
Use evidence from a case or a table to identify features of the colonial economy

Part 1 at a glance

Diagram

What colonial policy wanted

The colonial economic loop

India as a supplier of raw materials and a market for British manufactures.

Concept

The colonial government never measured national income seriously; private scholars did.

The government made no serious estimate; private estimates differ in method.
Who estimated India's income in colonial times	Note
Dadabhai Naoroji	Early estimate; linked poverty to the drain of wealth
William Digby, Findlay Shirras	Other private estimates
R. C. Desai	Later estimate
V. K. R. V. Rao	Generally regarded as the most significant