Key Points: Origin of British rule, status of the Indian economy at the time of independence, impact of partition, infrastructure, economic problems, etc.
Origin of British Rule
Beginning: Battle of Plassey (1757) - East India Company vs Nawab of Bengal
East India Company Victory: Entry and beginning of rule in India
Attempt to make India a 'Feeder Economy'
Exporting raw materials from India, manufacturing them in Britain, and selling them in India
Impact of British Rule
Economy: Indian economy under British rule used as a colonial economy
Colonial System: Exploitation of resources for Britain's benefit under colonial rule
Objective: Utilization of the Indian economy for the development of the British economy
Shift towards commercial crops (coffee, tea, indigo, cotton)
Decline in agricultural productivity
Lack of investment
Industrial Sector
Destruction of Handicraft Industry:
Arrival of machine-made textiles and products
Export of raw materials, import of machine-made products
Discriminatory Policy:
Bias in import-export policy (free raw material export, duty-free finished goods import)
Unequal competition for Indian handicraft products
Decline in employment and self-reliance
Foreign Trade
Key Trends:
Export of primary products (raw materials)
Import of finished goods
Monopoly Control:
Dominance of trade with Britain
Opening of the Suez Canal (1869)
Drain of Indian Wealth:
Exploitation of Indian resources
Lack of agricultural goods and investment
Impact of Partition
Loss of Market:
Reduction in market size due to partition
Human Resource Shortage:
Shortage of workers
Grain Problem:
Loss of fertile land
Raw Material Shortage:
Partition of fertile areas
Industrial Backwardness
Low Contribution:
Low contribution to GDP
Unemployment problem
Contribution of British Rule:
Appointment of officers, best engineering setup
Resource Crisis:
Lack of investment
Positive Contributions
Infrastructure:
Development of railways, roads, waterways, telegraph
Monetary System:
Introduction of currency, knowledge of money-making
Administrative Setup:
Development of administrative system
Commercial Perspective:
Encouraging farmers towards money-making
Key Dates
Start of Railways: 1850
Suez Canal: 1869
First Census: 1881
Year of the Great Divide: 1921
Establishment of Tata Steel:
Conclusion
The Indian economy at the time of independence was in a struggling state, but British rule played a significant role in improving infrastructure and economic structure to some extent. It became an important foundation for further economic independence and development.