Indian Economy on The Eve of Independence

Question

What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?

Answer

Focus of the economic policies persuaded by the colonial government in India : The focus of the economic policies persuaded by the colonial government was the protection and promotion of economic interests of her home country. These policies intended to transfer India into supplier of raw materials and consumer of finished industrial products from India Impacts of policies : The impacts of these policies were as under:
1. India became supplier of raw materials and consumer of finished goods produced in Britain.

2. The agriculture sector continued to experience stagnation and deterioration during British rule.

3. The vast majority of people in India led a miserable life.

4. Many of the cottage and small scale industries declined under the British rule.

5. More than half of India's foreign trade was restricted to Britain.

6. The country's growth of aggregate real output during the first half of the 20th century was less than this percent.

7. There was hardly any capital goods industry to promote further industrialisation in India.

8. The contribution of new industrial sector to the Gross Domestic Product remained very small.

9. The industrial sector cried for moaernisation and diversification.

10. There was rampant poverty and unemployment.

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