Under British colonial rule (1757-1947), India's economy was systematically transformed into a raw material supplier for Britain, with the 'drain of wealth' theory explaining how resources were extracted for British benefit rather than Indian development. The colonial government implemented policies that de-industrialized India, suppressed indigenous handicrafts, and maintained agricultural exploitation through systems like Zamindari, where intermediaries extracted rents from farmers while British authorities collected taxes. This resulted in extremely low per capita income (hundreds of times less than Britain), with 85% of the population engaged in agriculture at stagnant productivity levels. The infrastructure developed (railways, ports) primarily served colonial trade interests rather than Indian development. By independence, India faced enormous challenges including surplus labor, low agricultural productivity, lack of industrial base, and widespread poverty, setting the stage for post-independence economic planning and reforms.
Indian Economy| NCERT 11th Class| Fazal Classes for UPSC |
Added:[music] >> Good afternoon.
Okay, fine.
So, take the first unit, that is development policies and experience.
In the development policies and experience in the first topic which starts from 1947 to 1990, okay? So, what are the measures taken by the government uh during this 1947 to 1990 is what we are going to study now. Okay? In this this unit is about till reforms been made post independence.
Post independence from 1947 to 1990, which includes the planning, uh poverty related reforms, employment related reforms, irrigation, infrastructure, okay? So, export, import related all the things which made our economy to rise and there is also a fall. Again, it will rise after 1990 reforms. So, there's a break till 1990. So, post this break we will be studying more about the the content of Indian economy. So, in this first chapter, Indian economy on the eve of independence.
So, what is on the eve of independence? In the eve of independence means like immediately as you got independence, initially what did you do? We started with the planning, that is 1950. We started planning, okay? We established an institution which is called as the planning commission, okay? Headed by the chairman, that is the prime minister.
Next immediately, we started five-year plans, started from 1951.
So, 1951 to 1956. So, we had 12 plans.
And what else the role of this five-year plans till 1990 we have to study. 1990, why did we take a break here? Because post 1990, we introduced one of the very important reform that is called as LPG.
1990 economical reforms to come out from recession. Okay? To come out from the slowdown, etc. So, because we already discussed what is recession, what is slowdown, etc. So, you must be knowing you should catch that was very easily.
So, to come out from this repeated slowdown, repeated recession, etc. what we have done, we have come up with so many measures.
1991 measures, etc. So, what this 1991 measures will explain us.
Post that is that is post 1990. So, like something we would have faced till 1990 which made us to take this measures. At that time, the Prime Minister was P.V.
Narasimha Rao.
Okay? And the Finance Minister was our Manmohan Singh.
So, what is the role of these two people?
Because I've been repeating that Sri Lanka is in, you know, large-scale recession.
And there's so many articles about the Finance Minister.
Like, can such Finance Minister be reborn in Sri Lanka, etc. So, which can make the Sri Lanka to come out from those economic crisis. What we used to face earlier. Now, Sri Lanka is what is feeling is very extreme of what we are facing.
So, now when Sri Lanka is facing that kind of issue, that similar things few of them we'll be studying in between this 1947 to 1990. Okay? So, take the chapter number one, Indian economy on the eve of independence. So, what is there in this? Low level of economic development under the colonial rule, agricultural sector, industrial sector, foreign trade, demographic condition, occupational structure, and infrastructure. So, page number three to page number 11, we are going to complete this unit. So, when we take the unit number one, that is the first unit.
If you look at the introduction, the primary objective the primary objective of this book that is Indian economic development is to familiarize you with the basic features of the Indian economy. That means I have told you what were you facing in 1947 to 1990?
You must believe that till we move till 19 90, you must have seen so many changes.
So many changes, economical changes, development changes, infrastructure changes, etc. So that means 50 years, almost 50 years.
Okay, 50 years, what measures you have taken?
Like what measures you have taken, but there would have been something a drawback, there would have been something a gap which made you to fall into crisis.
Which was which was a major agenda. Most of the subjects we read, we actually take consideration of 1990 reforms only.
So the primary objective of this book is like Indian economic development is to familiarize you with the basic features of the Indian economy and its development.
As it is today in the aftermath of independence. However, it is equally important to know something about the country's economic past. Even as you learn about it present state and future prospects. So let us first look at the state of Indian economy prior to the country's independence and form an idea of the various consideration that shape Indian post-independence development strategy.
Exactly introduction I have given.
We would have taken so many measures from 1947 to 1990, but these measures what you have taken that made a cascading impact post 1990.
That means what you have taken measures, what changes you have made, what employment you generated, what development activity you have brought, what was your exchange rate dollar rupee, what export you used to make, all this are till 1990. Post consequences, post consequences means post 1990. Post 1990 we were very much ready after LPG reforms. The structure of India's present day economy is not just of the current making. It has its roots steeped in history, particularly in the period when India was under the British rule.
Which lasted almost for two centuries like before India finally won its independence on 15th August 1947. The sole purpose of the British colonial rule in India was to reduce the country to being a raw material supplier for the Great Britain own rapidly expanding modern industrial base. See, we have studied most of the time in the book repeatedly the statement which was mentioned by Dadabhai Naoroji.
Which is the poverty and un-British rule in India. In which he explained the concept of drain of wealth. What is drain of wealth? That means at that point of time prior to 1947, you have labor, you have resources, raw material, etc. With this, Britishers knew that India was quite good in the natural resources.
A country which has availability of good resources, so we can make use of this land and labor. We can employ them. We can make this resources. We can export the resources which are produced in India to other country. And the other country could supply to the various countries and also satisfy their own demands. Not satisfying India's demand.
So, at least when you get some returns, that should be utilized for the benefit of India's growth. It was never made.
You took resources from India. You exported from India. You used labor. You exploited labor. You exploited natural resources. You exported it to other country. And from that country, you sold those goods and you got returns and you utilized those returns for your own development, but not the development of India. That is the reason we fall into absolute poverty.
Two types of poverty. See, in this NCERT classes don't stick me only to NCERT line by line. I'll bring various topics.
That topic may be repeated again when we go forward. There you'll get easily understanding. So, two types of poverty, ma. One is called as absolute poverty. Other one is relative poverty.
Because of Britishers and their rule, we fell into absolute poverty. Not relative. Relative is very far. Leave it. We fell into absolute poverty. Now, what is poverty? Poverty means the basic essentials, that is food, shelter, clothing is not satisfied, then you're said to be in the poverty.
Two types of poverty. Absolute poverty, relative poverty. Absolute means what?
You don't have these basic things. Then you are called as absolute. Absolute means what? Basic essential for your survival, you don't have these things.
Then you are called as absolute poverty.
Now, in such cases, what is relative poverty? Relative means what?
Comparison.
When you compare when you draw a line, which is called as a poverty line. When you draw this line, which is called as poverty line, you'll start making comparison between the rich and the poor.
When you start making comparison between the rich and the poor, on what basis you are comparing? You'll compare them basis on their income, based on the expenditures, based on the stand of living, based on your savings, based on your food intake, based on your nutrition.
So, when you make these kind of comparison, then you are called as relatively poor.
When you are said to be relatively poor?
When we are making some comparison.
Why do we have to compare? Because we need to scrutinize who are poor. I should know who are poor.
When I should know how and who are poor, I will calculate. I will calculate taking a reference.
This reference is based on many committees.
Lakdawala Committee, Suresh Tendulkar Committee, Rangarajan Committee. Okay, there are so many committees have come into picture. We'll study them later.
But as of now, just understand every committee has come and has said, "Let us draw this line which can segregate rich and the poor." What is the use of segregating? We have to segregate this so that I can identify poor. I can enrich them with few basic essentials, okay? And can improve that the standard of living by providing certain minimum essentials. Example, we studied about in agriculture chapter PDS system. To whom we are providing? We're providing to BPL families so that at least the major criteria to make them to into poverty that can get satisfied. What is that? Food.
Target them with the basic essentials.
Give them certain requirements at the lowest price so that that requirement that is must that is hunger can be satisfied.
This is how you are measuring relative.
We were absolute because we do not have anything. India was into poverty.
India was into droughts. India was into famines.
Drought over a period of time was converted into famine, which means you're not taking any measures. You're just exploiting the people of the country. You're taking away the resources. You're looting up the wealth, taking up this and moving or forwarding or extending it to the benefits of United Kingdom. Not carry forward those benefits to the wealth or in terms of some sort of income, basic income, basic measures. You're not giving it to the country, then the country will fall into poverty. The poverty which we were earlier was absolute poverty. Over a period of time, government has worked so hard from 1947 to 1990, absolute poverty has come down.
That means government started providing shelter.
Government started providing some sort of clothing. Government started providing at the PDS the food. So that when you can satisfy these three things, absolute poverty can be eliminated. So can we say absolute poverty is eliminated? We can 100% say it has come down at the lowest level.
Can we say relative poverty has been moved out? No, relative poverty still exists. That is the reason we are drawing this poverty line to make comparison. We'll categorize poor and rich by drawing a line. So that the poor can be identified and they can be given some benefit. This is called as relative poverty. Is it clear? What is absolute and what is relative? Which is terrible?
That's it. Absolute poverty is terrible.
Do you think absolute poverty in the world has been removed?
No, because there are so many countries still African countries etc. Extended Asian countries etc. There are few areas that people live in absolutely poor.
Absolutely there's no growth. There is no proper penetration of the growth or some benefits from the GDP, then it actually results into absolute poverty. Okay?
Next.
Low level of economic development under the colonial rule. So we have to discuss this why there was a low level of economic development under the colonial rule. See, when we read about the first 1.1, when I have given you some points, make a note of those points and it will not be dictation, it will be a running notes. Okay? You keep moving your pen, you keep writing those points etc. I'll teach little bit slower and you can note down those points. Low level of economic development under the colonial rule. So what can you expect from the colonial rule? They have basically come here for trade purpose.
They come here for trade purpose. They looted. They made use of the land and labor, etc. You can't expect development from the colonial rule. Colonial, what is the meaning of the colonial imperial?
That means ruling for the long period of time. Rule is from the other countries.
Rule is from the other territory, not from your territory. Okay? Example, East India Company.
India has an independent economy before the advent of British rule. That is true. Though agriculture was the main sources of source of livelihood for most people, yet the country's economy was characterized by the various kinds of manufacturing activities. India was particularly well known for its handicraft industries in the field of cotton and silk, metal and precious stone works. These products enjoyed a worldwide market based on the reputations of the fine quality of material used and the high standards of craftsmen seen in all the imports from India.
Muslin, this is very very important cloth. Okay, very fine cloth which you get it here. Muslin is a type of cotton textile which has its origin in Bengal, particularly places in and around Dhaka.
Okay? At that time we have East Bengal and West Bengal.
West Bengal, now it is part of India.
East Bengal was also again part of India. That was again bifurcated to call it as an Bangladesh. That was That was called as East Pakistan earlier. Now, West Pakistan is a Pakistan. East Pakistan is Bangladesh.
So, earlier before the advent of before the advent of this colonial East Indian Company for the trade purpose, we were dominating in this handicrafts. Okay?
Textiles, etc. Manufacturing, agriculture is not new that Britishers have come and taught us.
Okay? So, so many dynasties used to live. You would have studied in your modern history, etc. So many dynasties has lived here. So many dynasties has ruled our country. Okay? So, those are the people who are inherent of our country. Those are the people who have introduced so many things.
Agriculture we have studied right from Indus Valley civilization only. No Britishers have taught us agriculture.
No Britishers have taught us making of this textile manufacturing, etc. It is our inherent. Our inherent means we have learned all this.
Our country has taught this, but due to this various disparities, disparities means what? Not ruled by one in the entire country, that mutual interest made this advent of other rulers to invade the country.
So, this advent of the ruler to invade the country started getting at a smaller scale. You know French, you know Dutch, you know Britishers who were very powerful, Portuguese, etc. There were four to five dynasties, four to dies countries has come and ruled here. But, you know Britishers were the one who who were at at the smaller scale, but they knew it few things how I should rule, how I should capture. They went into the larger scale capturing the entire country. So, at the minute scale you enter, at the maximal scale you'll occupy, and you'll take large scale of trade. You'll take large scale trade making benefits here for themselves, not to the country.
Now, here again you see here in this case of muslin is a type of cotton textile which has its origin in Bengal, particularly places in and around of Dhaka.
The original Dhaka.
Now, the capital of Bangladesh. Dhaka muslin, okay, has gained worldwide fame as an exquisite type of cotton textile.
The finest variety of muslin was called malmal. You must be knowing malmal shawls, malmal cloth, etc. Okay? And sometimes foreign travelers also used to refer to as malmal shahi or malmal khas, implying that it was worn by or fit for the royalty. If someone is using this, then it is like tradition of showing richness. Okay? So, people use this use this material to project their wealth. Okay? Project their royalty, their darbar, etc. The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interest of their home country than with the development of the Indian economy. This repeatedly I have told you many times that they have come here only for their own benefit. Vested interest. Vested interest means what? Whatever you are getting, you will take it for yourself.
Nothing for the development, etc. People say that they have developed railways.
They developed railways for what purpose? Purpose is to connect connect so that it will make their trade easier.
Exporting of goods easier. Exporting of trade from the trade, that is from one country to another easier. That's the reason connectivity of raw material they have brought this railway lines.
Example, Bombay to Thane in 1853, 35 km to 50 km they have introduced. Okay?
That could connect actually the raw materials.
Next.
Such policies brought about a fundamental change in the structure of Indian economy, transforming the country into supplier of raw material and consumer of finished industrial products from Britain. This also I have told you that you are being treated a country only for the supplier purpose.
We have come to your country for trade.
So, why do you go for trade? Make use of the goods, raw materials produced there, take those raw materials, export it.
Export it. They get benefit. They sell it.
They'll decide the price. They will get profit. They will use for their own country's growth, but not to the growth of India. This was clearly explained by Dadabhai Naoroji. This is called as a drain of wealth.
Okay, this was explained clearly which is called as the drain of wealth.
Obviously, the colonial government never made any sincere attempt to estimate India's national and per capita income.
Some individuals attempts which were made to measure some incomes yielded conflicting and inconsistent results.
Among the notable estimators, Dadabhai Naoroji, William Digby, Okay, Findlay Shirras, V. Rao, and R. C. Desai. It was Rao who estimated during the colonial period was considered very significant. So, how can you expect a questions in this uh See, among the notable estimators, what are they're estimating? They're estimating the national income and per capita income. What is national income? We discussed already, total income of the country, that is GDP plus NFI. And what is NFI? Net factor income from abroad.
This is called as GNP which is called as national income. National income means total income. So, these are the people who made actually the first estimations of the national income.
How much you are earning? See, from GDP you are earning.
How are you earning from GDP? Because resources are being produced here.
At that point, whoever it is produced, but resources produced in India. It's a domestic product. Plus, this domestic product is basically exported. And when you're exporting it, it is estimated that you should get some returns back to India. That should contribute to NFI.
You're getting out of production. That means it is getting out of economic activity. Are you getting NFI?
Definitely no. NFI was almost zero. When NFI was almost zero, which means what?
Which means you're making exports to other countries, it has some value, but you're actually not getting any returns.
So, national income of the country was quite low.
And per capita income. Per capita income means what? Total population you'll take, total income you'll take. How much a person is earning is quite lesser. You know how much the people earn in Britishers? I mean like I have told you earlier the UK people, Britishers, how much they earn? It was hundreds of time more than what Indians used to earn. So, per capita income was in the ratio of hundreds.
So, our per capita income was very very low. National income was very very low.
But where is the production activity is happening?
In India. That's it. Okay. So, this was earlier estimated estimated by these people itself.
Now, >> [clears throat] >> however, more most studies did find that the country's growth of aggregate real output during the first half of the 20th century was less than 2% coupled with a meager half percent growth in the per capita output per year. So, this is the data which you should understand that most things are produced here and good and exported, but what it is going to add it to your per capita income? Per capita income, how do you calculate your work your income?
Your work is more, exploitation is more.
Number of work you assorted in the production activity is very very high.
But end of the day, your incomes are very very less.
So, when your incomes are very very less on the average if I take the entire country, entire country is earning less.
Your per capita income is less. That means how do you expect a growth of the country?
Now, India's economy under the British colonial rule remained fundamentally agrarian. Remained fundamentally agrarian means right from the ages Indian economy is dominated by agriculture sector. Where most of the the value which is generated from the agriculture, okay, is very high in terms of GDP. About 85% of the country's population live mostly in the villages and derive livelihood directly or indirectly from the agriculture. This is not this >> [snorts] >> uh this point of view. Here this is statement is India's colonial like India's economy under the British colonial rule.
So, at that point of time, you should remember that about 85% of them were quite in the the rural areas who were actually working under agriculture sector. Very few, like 15% of them were associated in the urban area, semi-urban areas, where those are those areas like some of the institutions would have been established. Institutions like telegraph, post office, institutions like railways, okay? Or any sort of government institution which were established by the Britishers, you would have employed them, but still your your income was quite lesser.
However, despite being occupation of such a large population, the agriculture sector continued to experience stagnation and not infrequently unusual deterioration. Deterioration means what?
Consistency. When you're not giving some sort of investments. What is the investments you require? You require subsidies. You require some sort of input cost for the farmers to produce goods. You're not giving anything out of that. But you want something to be produced out of it.
So that will actually make the farmers not to participate in the agriculture activity. If you don't participate, somebody else will participate because there used to be system of zamindar.
There used to be system of ryotwari.
There used to be system of mahalwari.
Okay? Zamindari system, zamindars were the owners. There used to be chance of I'll teach you this in the land reform, but I'll tell you one line. Zamindari system, the ruling was made by zamindar, but the ultimate owner was the British.
British used to collect taxes from zamindar. Zamindar used to collect from the farmers. If the farmers fail to pay, then he will be replaced.
He will be replaced. So he will be replaced, that means I'll be losing the land. I'll be losing my work. So in such cases, farmer used to go out, bring some loans, make some investments, produce.
Out of his return, he used to give it to the zamindar. Zamindar used to transfer it to the British. This is called as zamindari system. There was a claim to that the system of zamindari which made us the original zamindar to concentrate in the urban areas making this zamindar not to directly get contact with the farmer made the evolution of intermediate zamindari system.
Intermediate zamindari means what? One zamindar will appoint other.
And he will appoint another. That means this intermediate zamindari system made further exploitation of the farmer.
Okay? So, there was a law which was introduced by the British which is called as the sunset law. Sunset law means what? Till the point of time, okay, certain period of time before the sunset, the zamindar has to hand over the taxes to the British. Else, zamindar will be expelled. So, in order to save his position, zamindar used to put lot of pressure on the farmer. This made the farmers either to commit suicide or the farmers to get expelled giving an opportunity for other farmer. The farmer who was expelled, he will be acting as an tenant or a peasant.
Tenant or the peasant. So, then what is the difference between a peasant and a farmer? Farmer has a right on the land.
Peasant does not have any right. Okay, we'll cut here. So, just understand investments in the agriculture sector were not much high, but associated association of the more people in agriculture was quite higher which made them to exploit our farmers, okay, drag more resources from the agriculture activity, export these goods not giving benefit to the cultivator. Now, agriculture productivity became low though in absolute terms, the sector experienced some growth due to expansion of the aggregate area under the cultivation. Only because of little expansion in the agriculture land, okay, which was there in the hands of the zamindar, which was there in the hand of the British, okay, could have been expanded to the farmers to cultivate.
That made the agriculture activity to increase its production, but it did not give any result to increase in the income of the farmers.
This stagnation in the agriculture sector was caused mainly because of the various systems of land settlement that were introduced by the colonial, particularly under the zamindari system, which was implemented in then Bengal Presidency comprising parts of India's present day eastern states. The profit accruing out of the agriculture sector went to the zamindars instead of the cultivator. However, the considerable number of zamindars and not just the colonial government did nothing to improve the condition of the agriculture.
Simple, I have explained you already.
What benefits you are getting it?
Zamindars are claiming it.
That is not been given to cultivator, neither by the British nor by the zamindars. But what the farmer is doing?
He's just involved in the production activity. Okay? Production activity to produce and sell this in the market, give this returns to the zamindar. The profits were taken by zamindars and the profits and the taxes were taken by the British. Intermediates zamindars are there, they will further exploit you.
So, in that cases, they were the evolution of the role of mahajans. Who are these mahajans? Mahajans are the set of people who will used to provide loans to the farmers. Why do they provide loans to the farmer? Because farmers were much in demand of the loans. They will divert to the mahajans to secure their piece of land.
Not giving up this land to the zamindar so that the farmer will become peasant again. He will lose the rights. He will become a tenant or he will become a peasant and he'll be working on others' land if he is expelled. So, he will divert himself to the mahajan. Mahajan will give him the loans at the higher rate of interest. Next time during the kharif or the rabi, if the farmer could actually produce some goods, he has to clear his debts.
In the failure of clearing his debts, okay? This farmer will be replaced by the another farmer provided by the mahajans, not by the zamindars. Now, Mahajan knew very well that he has to clear his loan, but he has failed in clearing loan. So, this Mahajan will take over the land from the hands of the farmer, and he will appoint new farmer.
So, what this farmer responsibility the new farmer who has come into picture, he knew very well ultimate owner is British. Ultimate owner is Zamindar, but my responsibility is also to clear up the debts, previous debts of the farmer.
So, I have to clear the debts. I have to produce it. Simple language, Mahajan is putting you in that land. He'll say, "I'll put you in the land only that if you can give me more returns."
If you give me more lagan. Lagan is a tax. If you give me more more returns.
So, if you give me more returns, then I will put you. Remaining you give to Zamindar and the British. What is this farmer is getting? Nothing. At least the earlier farmer could have get little bit, but this farmers is getting nothing. Okay? This is the way how the farmers income were made zero. Profits were taken this three stakeholders, but nothing was given to the farmers, and ultimately they were exploited. Okay?
That's the reason I say this is the very interesting and very important book. It connects to your polity. It connects to your economy trade. It connects to your history, also.
Provided we should know history. Which was You history is done, right? Okay, so good. Which was implemented in then Bengal presidency comprising parts of India's, okay?
However, considerable number of Zamindars and not just the colonial government did nothing to improve the condition of the agriculture.
Agriculture was not improved.
Agriculture was not improved, but what improved, what increased were exploitation.
Next, the main interest of the Zamindars was only to collect rent regardless of the economic conditions of the cultivator. This I have clearly explained. You have come here only to collect the rents, okay? And how it is working, how it is performing, I'm least bothered. Okay? Next point.
This caused immense misery and social tensions among the later.
To a very great extent, the terms of revenue settlements were also responsible for the zamindars adopting such an attitude. Dates for depositing specified sums of revenue were fixed, failing which the zamindars were to lose their rights. I have told you, owner of the land, owner of the land between the farmer and zamindar will be zamindar.
And the ultimate owners will be Britishers. Britishers will bring one law, will put these restrictions on the zamindar. Cascading effects will be on the land and the farmer. Okay? If you're not giving me tax, you will be expelled even though you are zamindar. I'll bring new zamindar into rule.
Next.
Zamindars were to lose their rights.
Beside this, low level of technology, lack of irrigation facilities, and negligible use of fertilizers all added up to aggravate the plight of the farmer and contributed to the dismal level of agricultural productivity. How can you expect the increase in agricultural productivity when you do not have higher returns, you do not have higher investments, you don't make encouragement for the farmers to produce with the basic income? That is the reason 85% of the people were associated in agriculture, and this was the phenomenal things which you were performing at the lowest level. And how do you expect the country's growth and per capita income to be higher?
You cannot expect the per capita income to be much higher because of these activities. Zamindars and Britishers were looting there.
Next.
There was, of course, some evidence of a relatively higher yield of cash crops in certain areas of the country due to commercialization of agriculture. Cash crops were quite higher.
Coffee, tea, indigo, cotton, okay? Sugarcane, jute. So, you used to go for such kind of cotton, etc. to produce most returns. So, however, this contribution got high, but I told you already that this contribution will not be made by all the farmers because I've told you perennial river system, irrigation, kharif and rabi participation, and income of the farmers depends on all these sociological factors.
Next, box number 1.2, agriculture during pre-independence India. The French traveler, Bernier, described 17th century Bengal in the following way, "The knowledge I have acquired of Bengal in two visits inclines me to believe that it is richer than the Egypt." Okay?
So, he believed that Egypt returns, what you're getting, that was quite higher in the Bengal when compared to Egypt.
It exports in abundance cottons and silk, rich sugar and butter. It produces amply for its own consumption, wheat, grains, ducks, and geese. It has immense herds of pigs, flocks of sheep and goats. Even now, it is very high in animal husbandry, West Bengal, okay?
Right from ages. Fish of every kind it has in profusion, from Rajmahal to the sea in an endless number of canals cut in the bygone ages from the Ganges, that is the Ganga, by immense labor for navigation, irrigation. Basically, you are uh protected, benefited with an alluvial kind of soil there in and around of your Ganga. So, the production was quite high. So, you expect uh different types of crops there, etc., animal husbandry, etc. So, what he felt is quite higher in terms of the production, quite high in terms of the productivity. In few areas like West Bengal was very high when compared to the other countries.
Okay?
Work this out. This is not for us. This is for the school kids, and you're not in school.
Next, but this could hardly help farmers in improving their economic condition as instead of producing food crops, now they were producing cash crops which were to be ultimately used by the British industries back home. So, even though you produce cash crops etc., see producing cash crops is not important.
Processing cash crops is important. So, you produce now, you process now. So, we have uh processing units like jute we process, sugarcane we process etc. So, those processing things deliberately you did not put it here.
Few at a very smaller extent you have produced here, okay, processed here, but most of the things processed were in UK only.
Because you know that Indians are quite clever. If you can transfer the technology and transfer this machinery, some control of the British can be reduced. Because you will make a finished product in India which will never be in the hands of the Britishers. That means you don't want to make the technology to be transferred.
So, you don't want this technology to be in the country. Why? Because you should always show that you are only a producer.
You're not in a stage of processing.
From producing to processing, what matters is technology which is not there in India. That is always present in the UK. That has to be processed there. See, it cannot be processed here. This is the gap between UK and India. It was deliberately shown.
Is it clear? So, that is the reason in the first case in the first stage of economy during its development within this colonial rule, you used to produce okay, export this produced goods raw materials to the countries developed countries like UK and used to process that. That processed good you used to again export to India and people used to buy here.
So, what is the gap? See, you you are only a producer. And what you are purchasing now is a final product. To make a final product, UK is very important. This is what has been put into the minds of Indians at that period of time.
So, as we grow as a technology we adopted because of the own skills, then we feel that something is going out of the hands of the British because production is happening here. Processing is also happening here. That's what mill industries has been developed. Sugar mill industries has been developed. Jute mill industries has been developed. So, when these industries quite started at that period of time, then Britishers used to feel that something is going out of the hand. Then you'll bring regulations. Regulations with some acts etc. to control these industries. All these industries will be controlled by us only.
Is it clear? You cannot process them without our permission.
Is it? So, that's the reason once it was exported, it used to process there. Now, when it started getting processed here, we'll bring some regulation. That means you will never go out of our control of trade. You'll always be in our control.
That was their mindset. So, just understand now we are not in anyone's control.
We you No one can control you. That's first thing. But we are not in anyone's control. So, when imagine that you are producing and you are buying up the same good which you have produced.
It's very difficult.
It's very difficult to digest that you produce the same good and you're purchasing the same good. So, which made you are getting very minimum returns.
This minimum returns is converted into expenditures.
Expenditures on the same good which you have produced. This is a very difficult thing.
Next, despite some progress made in irrigation, Indian agriculture was starved out of investment in terracing, flood control, drainage, and desalination of soil. With a small section of farmers change their cropping patterns from a food crops to commercial a large segment of the tenants, small farmers and share croppers neither had resources and technology nor had incentive to invest in agriculture. So, this is a very simple point. So, you must have understood the story what is happening in the quite previous uh ruling of this colonial system. Now, we'll go to industrial sector. So, if any boxes if I miss like you can just remind me if I overlook some statements you can remind me so that we don't miss anything in the chapter. Initially, it will go a little bit slower. Next, it will go like a Rajdhani Express because it will take some time for us to interact in this uh with respect to NCERTs because I'm teaching you line by line not missing anything. So, even if I miss you can just remind.
Okay, industrial sector is the next one.
Okay.
As in the case of agriculture, so also in the manufacturing India could not develop a sound industrial base under the colonialism.
Exactly, I have explained now. They did not develop any sound mechanism, technology. Basically, they were not allowed to made it. Even if they were made to allowed it, they will bring some regulations.
Someone wants to write something about the news.
So, someone in any of the languages vernacular press act etc. you must have studied. So, that you will bring some restrictions. So, that means you are writing something against the government you are gone.
Whatever the press, whatever the information you are giving you cannot write against the British.
So, when you are writing all this imagine a person like projecting at that point of time un-British rule in India. Poverty and un-British rule in India. Drain of wealth you try to clearly explain in this 1850s stating that what we are doing is with for someone else.
This is our country benefit should be there for our country only. That the first person identified with was Dadabhai Naoroji.
Now, even as the country's world-famous handicraft industries declined, no corresponding modern industry base was allowed to come up to take the pride of place so long enjoyed by the farmer. The primary motive of the colonial government behind the policy of systematically decent de- industrializing India was twofold. The intention was first to reduce India to the status of mere exporter. This I have explained. You are just a producer.
You are just an exporter. You produce and export. That's it. You have no responsibility and the right on the things which you have produced.
Okay? Of the of important raw material from the upcoming modern industries in the Britain.
And second, to turn India into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country, that is Britain.
Even though you produce goods, the profits which you are getting it, you will not utilize it for India.
Even though if you're producing the goods in India, second case, if you're producing goods of a greater technology that is in United Kingdom, that profits you have to forget. Anyways, in from profits from India you're not using, profits from UK how will you can expect? So, both the profits where they are going, they're going for the development of the United Kingdom. That's the reason the income levels in United Kingdom was very higher.
Their per capita income were hundreds of times greater than India. So, that's the reason the poverty was very high.
What kind of poverty? Absolute poverty.
These are the things which made us absolutely poor. Absolutely poor.
Deprived of all the things, basic things essential.
Next, in the unfolding economic scenario, the decline of indigenous handicrafts industries created not only massive unemployment in India, but also a new demand in Indian consumer market, which was now deprived of the supply of locally made goods. So, it is now deprived of the supply. He's saying it is deprived of the supply of locally made. Then where is the supply going?
Is now deprived of the supply of locally made good. It means where is the goods are moving out? They're moving out of India. That's it. So, that means you don't have access.
You don't have access to basic essentials also. So, how do you expect that a country can grow if your mindset is like this? This demand was profitably met by increasing imports of the cheap manufactured goods where? From Britain.
So, you actually again creating a demand here.
Okay. First of all, the supply is more in India. You exported that. Supply get reduced. When supply gets reduced, demand gets increased. This demand is satisfied from imports. Importing of goods from Britain. And when the demand is more, what will happen to the prices?
Prices will be of greater level. When the prices were very high compared to United Kingdom, you're getting more profit from India. When you're getting more profit from India, who is claiming those profits?
It looks very different, right?
You're producing deliberately supplying exports.
And from there you're again importing.
Creating demand, more prices and profits, taking profits for themselves and moving away. So, this is quite different type of economical scenario with the colonial rule had made in the country.
During the second half of the 19th century, modern industry began to took root in India, but its progress remained very slow. Initially, this development was confined to the setting up of cotton and jute textile mills.
The cotton textile mills mainly dominated by Indians were located in the western parts of the country.
Namely, Maharashtra and Gujarat. See, why in the western part of the country?
These These states, basically, they are good in the production.
Production of these raw materials like this cotton, this jute, okay, etc. West Bengal.
So, Gujarat, Maharashtra, why they were dominated in trade? Firstly, they were supported by ports.
Okay? The trade at that time was much supported by ports. At that time, you had this port system, and the trade was quite easy because these states were blessed with the coastal.
Okay? These states were blessed with the coastal. Anything you are developing there could easily be exported.
And that's the reason whatever you produce in and around, that will be connected easily to this Gujarat, Maharashtra, West Bengal, etc. And these would be exported to this state, and they used to get lot of benefit. The cotton textile mills mainly dominated by Indians were located in the western part of the country, namely Maharashtra and Gujarat. But the jute mills dominated by the foreigners were mainly concentrated in Bengal.
Subsequently, the iron and steel industry began coming up in the beginning of the 12th century. TISCO was incorporated in 190 Sorry, 20th 20th century.
Uh TISCO was incorporated in 1907. A few other industries in the field of sugar, cement, paper, etc. came up after the Second World War.
So, you must have studied in the modern history that when they require some goods, artilleries, weapons, etc. to participate in the Second World War, they want a active participation of Indians to produce these goods. So, we knew this very well. We started declining of the production, which actually required for the Britishers at that point of time.
However, there were hardly any capital goods industry to help promote further industrialization in India. Capital good industries, which means what?
What is the meaning of capital we have explained in the chapter number two.
Capital goods consuming goods. Capital goods are those goods which will engage in further production.
Machineries, etc. Technology, etc. Which will be very much helpful in further production of a finished goods.
So, capital good industry means industries which can produce machine tools which are in turn used for the producing articles for current consumptions. The establishment of the few manufacturing units here and there was no substitute to the near wholesale displacement of the country's traditional handicraft industries.
Furthermore, the growth rate of new industrial sector and its contribution to GDP or GVA remained very small.
Obviously, production was very high.
Investments were very low and what you are producing is a vested interest. So, even if it is textiles, even if it handicrafts or even it is any of the capital goods, you made investments here and that investments was only with the vested interest. That is to loot the country, to take away the country or to control the country with their acts.
Another significant drawback of the new industrial sector was the very limited area of operation of the public sector.
Very limited area of the operation, which means What all you are producing goods, the public sector wants only these goods to be produced.
They knew cleverly that a good which is of Indian origin could have been created much demand. For example, indigo. When indigo was very much in rise, they deliberately create a demand for another crop making the farmers to go deliberately giving more benefits for the another crop, not making rice for this diet. That is the reason we made a revolution which is called as Indigo Revolution. Okay? Next, another significant drawback of the new industrial sector was very limited. This sector remained confined only to the railways, power generation, communication, ports, and some other departmental undertakings. So, why are you confined?
Because these are the major.
I don't want any other thing.
I want banks.
I want archaeological survey. I want railways. I want Department of Post. I want trade. I want telecommunication.
I want natural resources. I want mining.
What is left?
Only these things are left. So, these things are the major things. I will control these major things. When I control these major things, everything is controlled.
When everything is in control, then I can actually go for the trade. Okay?
Work this out. You please work this out.
The the one in the pink box. Prepare a list showing where and when. That is not for you. That is school for the school students. Okay?
You read 1.5 now. Foreign trade.
India has been an important trading nation since ancient times. But, the restrictive policies of the commodity production, trade, and tariff pursued by the colonial government adversely affected the structure, composition, and volume of India's foreign trade.
Consequently, India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc. And then imported of finished consumer like cotton, silk, woolen, capital goods like light machinery, etc. What we are exporting is same. Look at the list.
What we are importing is also very similar. Other than this, something additional things which we are importing which are called as capital goods.
Capital goods are those goods. Where are the capital goods present mostly in UK?
Because you send raw material here, they will process this and the finished goods you will get it and you will buy.
And when you will buy, you're making an investment. They get some profits and it will be utilized by them. Okay? Such a Such a a trade you made in such a way that it's clearly shows an exploitative nature. Clearly exploitative nature.
Okay? Next.
For all practical purpose, Britain maintained a monopoly control of India's exports and imports. This is the statement which I have been continuously repeating. You came for the trade and very cleverly very cleverly you will divide the population, you will unite the population, you will create a supply, you will reduce the supply.
Anything I'm ready to do it unless and until all this segment areas, sectors, people are in my control. I want to control this country. If something goes out of the control, it's very difficult to perform the trade.
Okay? Next. For all practical purpose, Britain has maintained this. As a result, more than half of India's foreign trade was restricted to Britain while the rest was allowed with the few other countries like China, Ceylon is what?
Uh Sri Lanka. Okay? And Persia, that is Iran. So, this is very important. As a result, this underlined the statement.
As a result, more than half of India's foreign trade was restricted to Britain with the rest was allowed with the few other countries like China, Sri Lanka, Iran, etc. Why you made a trade 50% more than 50% with the Britain? Because you came for that purpose only.
And [snorts] you trade basically raw materials.
You trade raw Two two ma.
You take raw materials, you'll process in UK. You'll satisfy the global demand, which includes India.
You'll get profits. Second thing, you're trading with other countries also, Sri Lanka, China, Iran, etc. What goods? Goods are the raw materials which these countries require.
So, you keep in touch with other countries also to understand what is the requirements. At least these exports which you made other than UK, are you getting any profits? No. Basically, you're not getting any profit because we control entire trade. Entire country 50% I will only take charge.
With my country only, 50 50% I will choose other countries which are having demand, and those demand is satisfied by India.
Will you accept it now?
Definitely no. It's very cruel nature of the Britishers. The opening of the Suez Canal further intensified British control over the India's foreign trade. When was the Suez Canal open?
1869.
The most important characteristics of Indian foreign trade through the colonial period was generation of a large export surplus. But this surplus came at a huge cost to the country's economy.
Several essential commodities, food grains, clothes, kerosene, etc. were scarcely uh available in the domestic market.
Furthermore, this export surplus did not result in any flow of gold or silver into country. Why will that flow? It will never flow, okay, into the country.
Rather, this was used to make payments for the expenses incurred by an office set up by the colonial government in the Britain, expenses on the war, okay?
Underline, this is very important, that what are you using, the benefits you are getting, expenses incurred by an office set up by the colonial government in Britain. You have established any office for the trade purpose looking up this foreign trade, etc. For that, you have to give payments. So, you're making this payments for their profits. Next, expenses on the war. So, you wanted to you were indulged in war.
Okay? For that expenses, you're taking up benefits of us. Again, fought by the British government on the import of invisible items, all which led to the drain of invisible items.
Services.
Visible goods. There are two types of trade is trade is performed basically in visible and invisible. Visible are the goods, invisible are the services. So, anyone who is looking out the trade I'll put one person who is in charge of the trade.
Okay? So, that is considered as a service. So, that person is giving service. So, service with the profits I'm getting, I have to support him.
Any person who's looking of the goods, so I have to pay him. So, anything with respect to the trade of goods or services, I have to pay him. They're not being paid. They're paid in Indian Indian uh they're paid from the Indian wealth, not from the UK's wealth.
Demographic conditions.
Various details about the population of British India were first collected through census 1880 one. Though suffering from certain limitations, it revealed the unevenness in India's population growth subsequently.
Okay? Now, just look at before going to that I just wanted to explain you about the Suez Canal. See, globally, this is out of NCERT. See, understand, globally, there are very important choke points.
Choke point, c h o k e, choke points.
What are these choke points?
Choke points are the one which are called as the economic connectors.
Economic connectors are those connectors which will reduce the travel, the distance, the trade route time, etc. These are called as choke points. What are the choke points we have? Suez.
Okay? We have Swiss. We have Panama.
Okay, we have Malacca.
Okay, we have Isthmus nearby Isthmus of Kra.
The extension of Thailand, etc. Okay?
All these are the important choke points. If we do not have these choke points, Gulf of Suez.
Okay? So, if we Gulf of Aden, important choke points. If you do not have these choke points, the distance that travel time will take very lengthier.
So, that's the reason we started all these choke points.
Panama is one of the busiest.
Okay? Suez Suez is one of the busiest.
So, these are called as the choke points because right from the ancient, they are busy in trade.
They're busy in trade. Even now, they are busy in trade.
And Singapore is very busy. Why? How Singapore is earning? It is also pleased call as a call city. Port city, call point. That means what?
The port which the port it is acting as an entry and exit point. That's it.
Entry and exit. Lot of stalls are being maintained there. Lot of stalls are being maintained there.
Port is being maintained there. So, like Singapore earns a huge.
Is it clear? So, Suez Suez completely Suez Canal comes under whose control?
Uh Egypt now.
Okay? So, that means it will connect the Red Sea and the Mediterranean Sea.
That will actually lead again to the Atlantic Ocean from there UK, etc. It will reduce the trade route distance, etc. So, choke points are very common.
Choke points are very very important in print for of mapping. So, choke points again, there are many choke points which were controlled by the UK. They did not control the countries. They control choke points also. So, that it can actually make a very easier for them to control the trade route. So, controlling taking the control of country is one agenda.
You produce goods and it is taking a delay time. That means they came with a proper intention, proper channel. If I control this Suez, if I control this Panama, it could reduce my delay time, etc. The Panama will not allow broader ships.
>> [snorts] >> It will allow only the narrow or the small ferries.
Which can carry very limited logistics because the Panama Canal and its passage itself is very narrow.
And hence if you look at the southern, where is Panama?
Central American countries.
We have Southern America, we have Northern America. In Southern, Northern, Central American countries we are talking about.
We have Ecuador, we have Costa Rica, we have Panama, we have Honduras, we have Nicaragua. So, they are associated Mexico, USA, Canada. So, all this nearby this Caribbean region. So, this Panama, if it is not in a position to accompany larger scale of transportation, Nicaragua was the country which was very near of Panama. It could in a very broader position.
It could employ the broader trade when compared to Panama. So, Nicaragua first raised the hand like for the Hong Kong based company that I am very much ready to make one more choke point. But the tribes of this Nicaragua did not accept it.
Because it will make again rehabilitation of the tribe. Okay, they are very much indigenously settled in those, okay, places and it will also create a greater loss to the great Nicaragua Lake.
So, people did not accepted it. People said like it will be a very much loss to the ecosystem, the greenery, tribal resettlements. So, they raised their voice.
So, in considering them, the Nicaragua government said, "We will delay it for certain period of time. As of now, we are continuing with Panama only." So, where do you expect this choke points he's talking about? He's talking about Suez, then he can ask you questions about Nicaragua in the mapping. He can ask the boundaries of Nicaragua.
Okay? He can ask about the Grand Canal of Nicaragua, which was about to construct it. He cannot talk you about the Panama. Panama connects what?
To which two oceans Panama connects?
Where it is in and around of Caribbean Sea. So, be careful about this. This is very important. Mapping you get two to three questions. Mapping again linked to NCERTs, etc. Okay? Trade to the Suez.
So, it is already written, 1869 here.
Suez Canal is an artificial waterway running through the north to south across the Isthmus of Uh, you must be knowing Isthmus.
Okay? Of Suez in northeastern Egypt. It connects Port Said. Underline Port Said on the Mediterranean Sea with the Gulf of Suez on the Red Sea. Basically, it connects two important seas. One is the Mediterranean and the Red Sea. Okay?
Next, the canal provides a direct route rate for the ships operating between the European and American ports and ports located in the South Asia.
That includes India, East Asia, East Africa, and Oceania by doing away the need to sail around the Africa.
Strategically and economically, it is one of the most important waterway in the world. Its opening in 1869 reduced the cost of transportation. This is what is called as In exam, if I ask you about the choke points, don't get confused.
Choke points are the gateways.
These are the economic gateways. These are the connectors. You can use any terms. He can ask you the choke points.
He can use the connector.
Okay, he can use economic gateways.
Okay? So, this you should remember.
Tomorrow I'll ask you, what are the different types of choke points in the world? I've told you Panama.
Okay, one is Isthmus of Kra.
Malacca Strait.
Okay? And one we have in Suez.
There are few more choke points. There are few more choke points. The choke points are also in news. You have to read. You have to open the atlas and you have to read those choke points, which are very, very important for your exam.
Newly targeted choke points, Isthmus of Kra, Nicaragua. These are called as the newly targeted choke points.
That will again be in the news. Okay?
Subsequently, every 10 years such census operations were carried out.
Before 1921, India was in the first stage of demographic transition. The second stage of transition began after 1921.
However, neither the total population of India nor the rate of population growth at this stage was very high. Because of the because of the control systems which we have followed so that the population will not overflow in the country. The various social development indicators were also not quite encouraging.
What are the various social development?
One important at that time is not education, it is health.
Health was the one of the most important social development. Second was education.
Third was sociological social development indicators, like your income, your expenditures, meeting up the basic essentials, poverty was quite high. So, social See, that's the reason wages social development indicators were not also quite encouraging. They were not encouraging.
The overall literacy level was less than 16%. What is the literacy level now?
Huh, greater than 70.
Out of this, the female literacy level was at the negligible low of about 7%.
No, it was quite lower at that time.
Now, it is much improved. Public health facilities were either unavailable to large chunks of population or when available were highly inadequate. So, what are the public health facilities?
Hospitals, PHCs, primary health care units, mobile units, what we have now, we never used to have such kind of things.
So, consequently, water and air borne diseases were rampant and took a huge toll on life. No wonder the overall mortality rate was very high and in that particularly, the IMR was quite high, about 218 per thousand. So, this was one question which was asked.
Okay, he did not ask the number. He has asked a simple question. Consider the following statements about IMR and MMR.
IMR is calculated per thousand. MMR is calculated per lakh.
So, he has interchanged them. So, just remember 218 per thousand in contracts to the present IMR which is 33 per thousand. So, 218 is very, very high.
218 means very, very high per thousand live births. We are using 218 childs. Okay? That is quite high. Now, as per 2023 data, what is India's IMR? I will ask you tomorrow. Okay? What is the present IMR of India? Which state is having the least IMR and which state is having the highest IMR?
Okay? What is the role of Madhya Pradesh and Kerala?
What is the role of Madhya Pradesh and Kerala? Is the first question. And what is the role of Assam?
Madhya Pradesh, Kerala, uh it is high or low? Assam, it is high or low? I'll ask you tomorrow. Life expectancy was also very low, 32 years in contrast to the present 69. Life expectancy is only 30 two.
Now, it is 60 nine. 69 70, 71. It is in and around.
That means almost two times a person is able to live and survive when compared to those people. It was 30 32 is very, very less.
32 is very, very less, yeah. 32 Like at that point of time, social indicators, you can understand it's so worse.
But, your contribution to production was quite high.
Contribution to production was quite higher, and that's why I've told you country was into which poverty is absolute poverty. When you were in absolute poverty, that's the reason your life expectancy is 32.
Because you're not in a position to afford common things, basic things.
Next, in the absence of reliable data, it is difficult to specify the extent of poverty at the time, but there is no doubt that extensive poverty prevailed in India during the colonial period, which contributed to the worsening profile of India's population. So, he's indirectly saying extensive poverty. It is no doubt poverty was very high.
Hunger was very, very high. So, that's the reason in the first case only I explained you two types of poverty. One is relative, and that one is absolute. Extensive poverty and then the other one is number What could be the high chances?
Absolute. That's it. Absolute people don't have proper essentials. Okay.
Next, occupational structure. During the colonial period, the occupational structure of India, that is distribution of working persons across the different industries and sectors, show little sign of change. So, little sign of change in India, it is being shown in the NCERT, but I I can say we can easily assume there was no change. People stick to agriculture, they will stick to agriculture. Processing out there in manufacturing was something like that.
There was no processing here. Okay, processing were in the elsewhere country. So, how do you expect that some other sector will start establishment?
Even the other sector was established, those were in the control of the British. I have told you few other sectors, railways. Okay, processing industries. Few were that too in the few patches only. That too were in the heavy control of British. And third is the service sector, which is only the trade.
So, three segments were well established, but most of the population was associated in agriculture and income from agriculture was quite higher.
Okay, but now it is presently very different. Income from services is very very high, but the population associated in agriculture is high.
Now, next.
Agriculture sector accounted for the largest share of the workforce, which usually remained at a high of 70 to 75%, while the manufacturing and services it just accounted for 10 and 15%. Another striking aspect was growing regional variations.
Uh parts of then Madras like presidency, Bombay and Bengal presidency witnessed a decline in the dependence on the workforce on the agriculture sector with a commensurate increase in the manufacturing and services. Obviously, what happened? The trade increases.
Manufacturing increases. I have told you later period of time iron and steel, jute, sugarcane. This got well developed. So, when this got well developed, these are the industries.
There was no urban, there was no rural.
Wherever you start strength, that is the population increases, that is considered as an urban entity. There was no thing such as called as an urban. This area is urban, no.
Jute industries we discussed. Jute industries were well established there over a period of time due to that establishment, okay, the population in and around of the jute industries will increase. And that is the reason they were in the urban. That's it. I have set up that because it was feasible to me in that area, so I have set up. That area now converted as an urban area.
So here, like however there would have been an increase in the share of workforce in the agriculture during the same time. So in agriculture also people were participating now. Industries are participating. Services also they are participating, but their income was very lower. Under the colonial regime, basic infrastructure such as this railways, port, water, post and telegraph did develop. However, the real motive was this development behind this development was not to provide This is what in every class I say to my students that their real motive behind this development was not to provide the basic amenities to the people, but to serve but subserve various colonial interests. I told this in the banking also. This was written in only few books. That is one among them is NCERT. They brought bankings. They made establishment of archaeological survey. They made establishment of railways because they have some intention. But how we read in this now in the books like British developed this dams. British developed this industries.
British brought this railway system.
British brought this banks. They established bank here so that the people who are providing service here, looking care of those trade, this industrial sectors, agriculture activities, the British agents who are working here, okay, they will be paid salaries. They should get some accounts. So they'll get deposit here. Their family members who are in UK, they used to withdraw.
That's the purpose why I started banks here. It's not love that the people of the country can have a bank accounts.
Their intention is very different. Okay?
Next, roads constructed in the British prior to advent of British rule were not fit for the modern, but the roads that were built primarily served the purpose of mobilizing the army within India and drawing out raw materials from the countryside to the nearest railway station or to the port to send these away from the England or the lucrative foreign destinations. I've just explained this. Why did I develop port?
Ports also were developed that could be feasible for my trade. There always remain an acute shortage of all-weather roads to reach out to the rural areas during the rainy season. Therefore, people mostly living in these areas suffered uh naturally because my intention is very clear. Develop few areas, control few areas, trade few areas. Remaining how people will reside, how people will stay, it's not my business. I came here only for trade, but not to develop your country. So, when I'm not here to actually develop your country, why will my railway line pass through your place?
You whether come and settle. That's the reason across this railway tracks, etc., across this railway routes or the roads or in and around of the industries, people started making settlements because trade increased, facilities increased, production increased, employment increased. So, people start making settlement that will convert into urban settlements. That's it. Okay. The British introduced the railways in 1850 and it considered as one of their most important contribution. The railways affected the structure of Indian economy in two important ways. On the other hand, on the one hand, it enabled people to undertake long-distance travel and thereby break geographical and cultural barriers. While on other hand, it fostered commercialization of Indian agriculture that adversely affected the self-sufficiency of the village economies in India.
So, one is people-to-people contact ties. Some say it is increased. I can travel, etc., but some says if you travel, you'll have less chances to come back and meet. So, in and around people, that also break the culture. So, the volume of India's exports undoubtedly expanded, but it benefits really acute to the Indian people. The social benefits which the Indian people gained owning to the introduction of the railways were outweighed by the country's huge economical loss.
Along with the development of roads and railways, the colonial dispensation also took measure for developing the inland trade and sea lanes. However, these measures were far from satisfactory. So, ports in Gujarat, ports in Maharashtra, this will be major. Why? The trade from India could be major.
Inland, that is the waterways, etc. Because you need not develop waterways.
Waterways were natural. But waterways also you want to develop.
But if it is not contributing at the high scale, this will not be at the maximum satisfactory levels.
However, these measures were far from satisfactory. The inland waterways at times also proved uneconomical as in the case of the coastal canal on the Orissa coast.
Though the canal was built at a huge cost to the government's exchequer, yet it failed to compete with the railways because large scale population were dependent on railways.
Large scale of connectivity of natural resources were very easy via railways than going to the other waterways and roadways. Large mass communication. Mass transportation. Mass connectivity. Okay, export-import was only via the railways.
Okay? I'll We will discuss in the regular classes of the railways. Why railway budget was merged, railway budget was separated, etc. At that point of time we will bring. But this will also we'll read in the microeconomics also. The introduction of the expensive system of electric telegraph in India similarly served the purpose of maintaining law and order. The postal services on the other hand, despite serving a useful public purpose, remain all through inadequate. So, I have told you telecom, telecommunication, railways, okay, archaeology center, banks, etc. So, what this paragraph say?
My intention is very simple.
What all and how all these people are controlled, first thing. Second thing, how can I control the trade which can give me profit? I can stay here unless and until I'm getting profit. If no profit, I will choose some other country. But we know that we can rule this country for the long period of time stating that the resources that this country has is very, very unique.
Spices in Kerala.
Muslin in this west and the east. The resources like the agricultural resources, the rare materials which you get it, if I mine coal, etc., very much available in India. So, you it's something like an hub which has been given to them. So, you can't expect them to leave in 5 to 10 years. That's the reason they have carried forward long rule, imperial, colonial rule.
Conclusion, by the time India won its independence, the impact of the two century-long British colonial rule was already showing on all aspects of the Indian economy. The agriculture sector was already saddled with surplus labor and extremely low productivity because slowly, one by one, people started moving. This was the initial conclusion, was the starting stage of the People were more disguised unemployment.
Disguised unemployment means what? More people are actually involved than required. If a one acre of land, I have told you in agriculture, two people are working.
Okay, and you add two more, it becomes four.
So, production may be similar or may increase.
But productivity will definitely come down. You can actually give 100% because of two additional people, you will give only 50%. This was the problem.
The industrial sector was crying for modernization, diversification, capacity building, and increased public investments. Foreign trade was oriented to feed the industrial revolution in Britain.
Infrastructure facilities, including the famed railway network, needed upgradation, expansion, and public orientation.
Prevalence of rampant poverty and unemployment required welfare orientation of the public economic policy. In a nutshell, the social and economic challenges before the country were enormous. They were very high.
But as you move on, could be could be reduced because of the intelligence of our own people to produce goods, to carry forward things, rather than dependency. We knew it very clear, dependency on British could actually hit us, rather than if we depend on ourselves, then it could actually give us many returns. So, this is the end of your chapter.
>> [music]
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