• UGI USER
  • Oct 31, 2023
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British rule on the Indian economy

Q. Discuss the impact of British rule on the Indian economy. Also examine the policy measures of the first two decades after independence taken by successive governments.

Structure of answer

Introduction

  • Mention the British colonial period and its tenure

Body

  • Mention both positive and negative impacts on Indian economy, can use table
  • Mention the policy measures of the first two decades after independence taken by Pt. Nehru and Lal bahadur Shastri’s government

Conclusion

  • Mention the impact of post independence policies measures on Indian economy.

British colonial rule in India, from 1858 to 1947, had a profound and lasting impact on the Indian economy. The economic consequences of British rule were felt long after India gained independence.

Impact of British Rule

Positive Impact

 

 Negative Impact

 
  • Technological Advancements: The British introduced innovations like railways and telegraphs, enhancing transportation and communication.
  • Industrial Development: New industries, including textiles and mining, were established, creating jobs and stimulating economic growth.
  • Trade Expansion: Increased international trade boosted Indian exports and imports, contributing to economic development. 
  • Resource Exploitation: British exploited Indian resources, causing setbacks in agriculture and handicrafts.
  • Wealth Drain: Profits sent to Britain drained India’s wealth, hindering domestic investment.
  • Deindustrialization: Traditional industries suffered, leading to unemployment and poverty.

 

Post-Independence Economic Policies (1947-1967)

Nehru’s Vision (1947-1964)

  • Five-Year Plans: Nehru’s government initiated the Five-Year Plans to promote economic growth and reduce poverty. The 1st Five-Year Plan (1951-1956) emphasized agriculture and industry development.
  • Public Sector Expansion: Nehru emphasized state control of key industries. The Industrial Policy Resolution of 1956 promoted public sector enterprises and limited the role of the private sector.
  • Agricultural Reforms: Nehru’s government aimed to improve agriculture. The Community Development Program (1952) focused on rural development, and land reforms were initiated to address inequities.

Lal Bahadur Shastri (1964-1966)

  • Jai Jawan, Jai Kisan: Shastri launched this slogan, emphasizing the importance of both the military and farmers.
  • Green Revolution: Policies introduced by Shastri aimed at increasing agricultural productivity through high-yielding varieties of crops, boosting India’s food production.
  • White Revolution: The National Dairy Development Board was established to replicate the success of the Green Revolution in milk production.

The policies implemented during Nehru and Shastri’s tenures set the tone for India’s socio-economic transformation. While Nehru steered the economy towards self-reliance and public sector dominance, Shastri’s initiatives brought immense changes in agriculture and dairy sectors, crucial for rural development. Both leaders’ efforts were instrumental in shaping India’s economy in the early post-independence years, aiming for inclusive growth and self-sufficiency.