Download indian economy under british rule

INDIAN ECONOMY UNDER
BRITISH RULE
 BRITISHERS CAME TO INDIA AS
MERCHANTS.THEY PURCHASE INDIAN GOODS
AND PAYED IN BULLION.
 SO INDIANS WERE BENEFITTED FROM THIS ,AS
THEY CONSTITUTED THE COMPRADORE CLASS
AND USED TO BUY THE GOODS FROM THE INDIAN
ARTISANS AND SOLD IT TO BRITISH MERCHANTS.
 THE TAXATION BY THE INDIAN STATES ALSO
EARNED THEM VALUABLE FOREIGN EXCHANGE.
 THIS WAS THE SITUATION BRFORE THE BATTLE OF
PLASSEY.
AFTER THE BATTLE OF PLASSEY
 NOW THE BRITISH MERCHANTS STARTED SECURRING
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SOME CONCESSIONS AND STARTED BUILDING SOME
FACTORIES(NOT THE MANUFACTURING UNITS).
THEY ALSO STARTED ACQUIRING SOME PLACES AND
MERCANTILISM WHICH BELIEVES IN OVERALL
ELIMINATION BECAME THEIR AGENDA.
THE DASTAKS WHICH WERE ACQUIRED BY THE BRITISH
MERCHANTS FROM NAWAB,BEGAN TO BE MISUED FOR
THE PRIVATE TRADE.
ALSO THE BRITISH MERCHANTS SOLD THIS TO THE
INDIAN MERCHANTS ,WHICH INEXPLICABLY LED TO THE
LOSS OF REVENUE TO THE INDIAN STATE.
HENCE THE POOR INDIAN MERCHANTS COULD NOT
COMPETE WITH THEM.
 BY PROVIDING MONEY IN ADVANCE TO
THE ARTISANS-------DADAN SYSTEM----THE BRITISH MERCHANTS FORCED THE
ARTISANS TO CASH CROPS AND ALSO
DECIDED THE PRICES ,WHICH RARELY
FULFULL THE SUBSISTENCE NEEDS OF THE
POOR PEOPLE.
 AFTER THE TREATY OF ALLAHBAD(1765 A.D) THE
BRITISHERS TRADED WITH THE REVENUES OF BENGAL
AND DID NOT FAVOUR ANY IMPORTS.
 THE INTRODUCTION OF THE DUAL GOVERNMENT BY
ROBERT CLIVE ,EMPOWERS THE BRITISHERS WITH THE
AUTHORITY AND RESPOSIBILITY REMAINS THE CRITERIA
OF NAWAB.THIS LED TO THE FURTHER
IMPOVERISHMENT OF THE PEASENTRY IN THE FORM OF
EXORBITANT LAND REVENUE.
 THE PRESENTS AND GIFTS WHICH THE COMPANY
OFFICIALS USED TO GET FROM THE NAWAB WAS
ENORMOUS .FROM BENGAL ALONE SIX MILLION
POUNDS WERE DRAINED OUT BETWEEN 1759 AND
1765,EXCLUDING THE TRADING BENEFITS OF THE
COMPANY
 RAW MATERIAL STARTED GETTING EXPORTED
FROM INDIA AND THE FURNISHED GOODS WERE
SOLD BACK.THIS CAUSES RUINS TO SMALL SCALE
AND HANDICRAFT INDUSTRY,AS IN THE ABSENCE
OF THE PROTECTION FROM THE STATE ,THEY
COULD BARELY COMPETE WITH THE FOREIGN
PRODUCTS.
 AT THE SAME TIME THE BRITISH FORBADE THE
USE OF THE PRINTED AND DYED CLOTH FROM
INDIA.THEY CHARGED HIGH IMPORTS DUTIES
FROM THE INDIAN GOODS AND NEGLECTING THE
THE SAME IN INDIA.
 BY ALL THIS THEY COMPLETED THE
CONQUEST OF INDIA AND KEEP THE
INDUSTRIAL REVOLUTION IN ENGLAND
GOING.
 AFTER GETTING BIG SURPLOUS ,THEY
INVESTED BACK IN RAILWAYS ACCORDING
TO THEIR OWN NEEDS--------HENCE
FURTHER IMPOVERISHMENT OF ARTISANS
AND PEASANTS.
 IN BIHAR,BENGAL AND ORRISA,THEY
STARTED CULTIVATING OPIUM AND
SMUGGLING IT TO CHINA THUS GETTING
GOLD AND SILVER.
 HENCE INDIA BACAME A COST FREE
COLONY FOR THEM .
BACKWARD NATURE OF THE
INDIAN ECONOMY
 1. 70% OF THE LABOUR FORCE WAS ENGAGED IN
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AGRICULTURE .
2. IN THE NON-AGRICULTURE SECTOR THE
PREDOMINENT ACTIVITY WAS IN SERVICES RATHER
THAN IN LARGE SCALE INDUSTRIES.
3. MOSTLY LIGHT INDUSTRIES WERE ESTABLISHED
,WHILE MODERN METALLURGICAL ,ENGINEERING AND
CHEMICAL INDUSTRIES WERE INSIGNIFICANT.
4. THERE WAS ALSO LOW PER CAPITA INCOME WHICH
REVEALED THE POOR
DIET,HOUSING,CLOTHING,ILLITERACY ETC.
5. THERE WAS ALSO TOTAL DEPENDENCE OF INDIA ON
THE REST OF THE WORLD FOR MODERN MACHINERY
NEEDE FOR ECONOMIC DEVELOPMENT.
 ANOTHER IMPACT OF THE BRITISH RULE ON INDIAN
ECONOMY WAS THAT IT LED TO THE STAGNANCE IN THE
INDIAN ECNOMY .FOR NEARLY A CENTURY ,THE
ANNUAL RATES OF GROWTH IN THE PER CAPITA WAS
NOT HIGHER THAN .5% .BESIDES ,THE RAPID GROWTH
OF POPULATION MADE THE SITUATION WORSE.
 NO EFFORT WAS MADE TO MODERNISE THE ECONOMY
,AS IT WAS COLONIAL AND FEUDAL IN NATURE------MILLION OF PRODUCERS LACK THE KNOWLEDGE AND
THE INCENTIVE FOR MODERNIZE THE PRODUCTIVE
FORCES .
 ALSO THE POLICY OF LAISSEZ FAIRE MADE THE
SITUATION MORE PRECARIOUS.
ANOTHER IMPACT ON INDIAN ECONOMY
WAS THAT THE PLANTS WERE OVERWORKED ,RESULTING IN HEAVY WEAR AND
TEAR.REPLACEMENTS WERE HARD TO
COME BY.THIS LED TO THE EROSION OF
THE PHYSICAL ASSETS AND THE
DEPLETION OF THE REAL CAPITAL.
CONCLUSION
 BUT THERE IS ANOTHER SIDE OF THE COIN
TOO.
 MONEY
ECONOMY,CAPITALISM,CONVENTIONAL
INDUSTRIES,COMMUNICATIONS,RUDEMENTA
RY EDUCATION AND HEALTH AND THE
COMMERCIALIZATION OF AGRICULTURE
WERE SOME OF THE INNOVATIONS
INTRODUCED BY THE BRITISH WILLY-NILLY .
 TODAY WE HAVE TO RIDE BACK ON THIS
HUNCH-BACK TO MAKE OUR ECONOMY
GROW.