ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It would totally incorrect to state that the Indian economy was worse off before the Colonial rule. Historical facts prove that our nation was economically well placed with a vibrant and flourishing economy. Our status as an exporter of spices, raw material and handicrafts was unmatched and had no parallel.

Detailed explanation-2: -India had an independent economy before the advent of the British rule. Though agriculture was the main source of livelihood for most people, yet, the country’s economy was characterised by various kinds of manufacturing activities.

Detailed explanation-3: -Deindustrialisation:India could not develop its industrial sector under the colonial rule. This is because the colonial government followed the policy of systematic deindustrialisation. India’s Per capita Income was mere half percent growth rate while Growth of GDP was less than 2 %.

Detailed explanation-4: -Economic Impact: India became an economic colony of industrial England. Indian handloom weaving industry was hit by the industrialization in England and eventually collapsed. Indian handicrafts lost both domestic and foreign market.

Detailed explanation-5: -Composition of exports and imports showed the backwardness of the economy. Monopoly control of India’s Foreign Trade-British government monopolized the exports and import soft the country in a way that, More than 50% trade with Britain only.