What was the state of Indian economy on the eve of Independence Class 12?
On the eve of independence Indian economy was in very bad shape due to the presence of British colonial rule. The sole purpose of the British colonial rule in India was to reduce the country to being a feeder economy for Great Britain’s own rapidly expanding modern industrial base.
What type of economy existed in India on the eve of British rule in India?
Agriculture- The Prime Occupation: Under the colonial rule, India was basically an agrarian economy, employing nearly 85\% of its population. As India had a massive poverty during the colonial rule, so a large proportion of the population was engaged in agricultural sector to earn their subsistence.
What was the condition of Indian economy at the time of independence?
When India declared its independence in 1947, its GDP was a mere 2.7 lakh crore accounting for a paltry 3 per cent of the world’s total GDP. In 2018, India leapfrogged France to become the fifth largest economy in the world, now behind only the United States, China, Japan, and Germany.
What was the main feature of Indian economy on the eve of Independence?
Stagnant economy: There was very slow or no economic growth in the country. As a result of stagnation, there was unemployment, death, and suffering due to lack of food. 2. Backward economy: Indian economy was a backward and per capita income was very low and in India, it was just Rs.
Why was Indian economy called an agricultural economy on the eve of Independence?
On the eve of independence, our Indian economy was known to be in an agro-state. Despite being a primary mean of livelihood, India’s agriculture sector was in a rapid decline. One of the main reasons behind it being scattered land owned by different individuals which made it even harder for cultivation.
What type of economy is an Indian economy?
Today, India is considered a mixed economy: the private and public sectors co-exist and the country leverages international trade.
What is the meaning of Indian economy on the eve of Independence?
(A) Explanation The Indian economy was an agro-based economy on the eve of independence. ● 75\% of the Indian population was earning a livelihood from agriculture. ● Despite being a primary source of income for a major population, this sector faced a decline under the British rule.
How was Indian economy on the eve of Independence?
In the Indian economy on the eve of Independence, agriculture was our principal source and sector of occupation with almost 72.7\% of the working population engaged in this sector of the economy. On the other hand, only 10.2\% of the working population were engaged in the manufacturing or industrial sector.
What were the main features of the Indian economy on the eve of Independence?
Our economy had been a victim of enormous exploitation. Our natural resources, iron ores, gold mines, wealth and manpower was subject to intense exploitation. Due to these atrocities, the Indian economy on the eve of independence showed poor/low economic growth.
What is Indian economy in simple words?
India’s economy includes agriculture, handicrafts, industries, and a lot of services. For most of India’s independent history, it had strict government controls in many areas such as telecommunications (communication over long distances), banking and foreign direct investment.
What is meant by Indian economy?
Indian economy is termed as the developing economy of the world. Some features like low per capita income, higher population below poverty line, poor infrastructure, agriculture based economy and lower rate of capital formation, tagged it as a developing economy in the world.
What is the meaning of Eve of Independence?
A day before independence is called the eve of independence.
What was the economic condition of India on the eve of Independence?
On the eve of independence, India possessed low level of economic development and stagnant economy under the colonial rule. Colonial Rule: It refers to a system between two countries under which one country is the colony and the ruling country determines the economic policies of the colony.
What were the economic policies of the colonial government in India?
The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country rather than with the development of the Indian economy. Thus, at the time of independence in 1947, India was a poor and underdeveloped country.
How did the partition of India affect the Indian economy?
Also, the whole of fertile land under jute production went to East Pakistan. The jute industry was most severely affected due to partition. Thus, Indian agriculture became backward, stagnant and non-vibrant under the British rule. Indian Economy on the Eve of Independence .
What was the state of the Indian economy in 1947?
The state of the Indian economy in 1947, the year of India’s Independence ii. the factors that led to the underdevelopment and stagnation of the Indian economy.