Positive Effects
- Advancements in Agriculture: Commercial agriculture began to flourish, marking a significant shift in the farming landscape. This change transformed the perception of farming from a subsistence activity to a profitable venture.
- Infrastructure Development: The expansion of railways, road networks, and communication systems created new economic and social opportunities. It also fostered greater cultural connections across different regions of the country.
- Famine Mitigation: Improved transportation and communication systems played a crucial role in mitigating famines. They enabled the swift delivery of food supplies to areas suffering from drought and famine.
- Efficient Administrative System: The British rule in India left behind an efficient administrative framework. This framework served as a valuable resource for Indian politicians and planners.
- Transition to Monetary Exchange: There was a significant shift from the barter system to a monetary exchange system. This shift facilitated specialization of labor, large-scale production, and the growth of markets.
Negative Effects
- Commercialization of Agriculture: British trade policies encouraged the export of raw materials and the import of manufactured goods. This led to the coerced transition of farmers from food crops to cash crops, resulting in imbalances in food supply and demand, leading to famines and scarcities.
- New Land Revenue System: The new land revenue system proved detrimental to Indian agriculture. Land improvement was neglected by both absentee landlords and tenant cultivators due to uncertainties about tenancy and the potential for increased rents. This led to stagnation and decreased productivity in agriculture.
- Decline of Handicrafts: Prior to the Industrial Revolution in Britain, India’s foreign trade focused on exporting spices and textiles. However, with the onset of industrialization in Britain, India’s trade shifted to exporting raw materials and importing finished goods. Indigenous handicrafts couldn’t compete with cheaper, machine-made foreign goods, resulting in their decline.
Additionally, the opening of the Suez Canal in 1869 lowered transportation costs, making it easier for foreign goods to penetrate Indian markets. The decline of princely courts and the influence of Western-style living also contributed to the shift in consumer preferences from indigenous to European goods.
The decline of Indian handicrafts had far-reaching economic consequences. Artisans lost their traditional occupations and turned to agriculture, often as landless laborers. The increased population pressure on land led to the sub-division and fragmentation of land holdings and higher land rents.
1.10 CONCLUSION
In 1947, when India gained independence, it was a nation facing significant economic challenges. Agriculture was in a dire state, and the full potential of mineral resources remained untapped. Industries were limited in number, with many cottage and small-scale industries declining during British rule. Widespread unemployment existed not due to a lack of willingness to work, but due to a lack of job opportunities. India had one of the world’s lowest per capita incomes, indicating that the average person lived in extreme poverty and struggled to afford basic necessities. The typical Indian diet consisted mainly of rice, wheat, and millets like jowar and bajra, with few able to afford a nutritious and balanced diet. The majority of India’s population endured harsh living conditions. India, despite its wealth in resources, was a country with a poor and underprivileged populace.
In summary, as Bettelheim aptly described, India’s economic situation just after independence was characterized by limited industrialization, low agricultural output, a low national income, sluggish economic progress, significant unemployment and underemployment, and an overall stagnant and backward economy.
Objective Type Questions
1.What positive change did commercial agriculture bring to India during British rule?
a) Decreased agricultural productivity
b) Increased reliance on subsistence farming
c) Shifted farming from subsistence to profitability
d) Reduced cultural connections across regions
Answer: c) Shifted farming from subsistence to profitability
2.How did infrastructure development impact India during British rule?
a) Hindered economic growth
b) Weakened cultural ties between regions
c) Created economic opportunities and cultural connections
d) Led to increased famine incidents
Answer: c) Created economic opportunities and cultural connections
3.What role did transportation and communication systems play in India during famines?
a) They exacerbated famine conditions.
b) They had no impact on famines.
c) They helped in the swift delivery of food supplies.
d) They caused food shortages.
Answer: c) They helped in the swift delivery of food supplies.
4.How did the efficient administrative system left by the British benefit India?
a) It hindered political progress.
b) It discouraged efficient governance.
c) It served as a resource for politicians and planners.
d) It led to increased bureaucracy.
Answer: c) It served as a resource for politicians and planners.
5.What major economic shift occurred in India’s exchange system during British rule?
a) A shift from monetary exchange to barter system
b) A shift from large-scale production to subsistence farming
c) A shift from barter system to monetary exchange
d) A shift from specialization of labor to self-sufficiency
Answer: c) A shift from barter system to monetary exchange
6.What did British trade policies encourage in terms of Indian agriculture?
a) Export of manufactured goods
b) Export of raw materials and import of manufactured goods
c) Import of raw materials
d) Import of food crops
Answer: b) Export of raw materials and import of manufactured goods
7.How did the new land revenue system impact Indian agriculture?
a) It led to increased land improvement.
b) It benefited both absentee landlords and tenant cultivators.
c) It resulted in stagnation and decreased productivity.
d) It reduced uncertainties about tenancy.
Answer: c) It resulted in stagnation and decreased productivity.
8.What contributed to the decline of Indian handicrafts during British rule?
a) An increase in demand for indigenous goods
b) Competition from expensive foreign goods
c) Competition from cheaper, machine-made foreign goods
d) Patronage from princely courts
Answer: c) Competition from cheaper, machine-made foreign goods
9.How did the opening of the Suez Canal affect India’s trade?
a) Increased transportation costs
b) Hindered the penetration of foreign goods
c) Lowered transportation costs and facilitated foreign goods’ entry
d) Decreased the demand for European goods
Answer: c) Lowered transportation costs and facilitated foreign goods’ entry
10.What economic consequences did the decline of Indian handicrafts have?
a) Increased demand for indigenous goods
b) Improved conditions for artisans
c) Transformation of artisans into landowners
d) Artisans turned to agriculture, often as landless laborers
Answer: d) Artisans turned to agriculture, often as landless laborers