Outline the state of agriculture, industry, foreign trade, poverty, unemployment, infrastructure by the time India won independence.

Or

Discuss the state of Indian Economy on the eve of Independence.

State of agriculture, industry, etc. by the time India won the independence:

1. Agriculture : The agriculture sector suffered from low productivity and stagnation. It was saddled with surplus labour. It contributed more than 50% of the national product.

2. Industry : India was in a neglected state. Only a few organised large scale industries existed in 1947. The industrial sector was dominated by small scale industries. The industrial sector was dying for modernisation, diversification capacity building and increased public investment.

3. Foreign Trade : On the eve of independence in 1947, Great Britain accounted for a large share of India's foreign trade. Foreign trade was oriented to feed the industrial revolution in Britain.

4. Poverty : Indian economy was shattered economy on the eve of independence. Poverty was all prevailing and wide-spread. Per capita income was very low.

5. Unemployment: There was prevalence of unemployment which required welfare orientation of public economic policy.

6. Infrastructure : Infrastructure refers to those structural elements of an economy which facilitate the flow of goods and services between buyers and sellers. It is of two types : (i) economic structure and (ii) social infrastructure. The state of economic infrastructure in India at the eve of independenc can be studied with reference to roads, railways, etc.

7. Roads : The British Government built roads for mobilsing the army within India and allowing out raw-materials from the country side to the nearest railway station or the part to send them to for away England or other lucrative, foreign destinations. There always remained an acute shortage of all weather roads to reach out to the rural areas during the rainy season. People mostly living in rural areas suffered grievously during natural calamities and famines.

8. Railways : The Britishers introduced the railways in India in 1850. Railways made a great contribution to the growth process.

Social Infrastructure : We will study the case of social infrastructure in India with reference to education and health facilities.

(i) Education : In 1951, the All India percentage of literacy in India was about 16. Out of this the female literacy level was about seven percent.

(ii) Health facilities : At the eve of independence of India, health facilities were very poor and inadequate. Public health facilities were either unavailable to large chunks of population or when available were highly inadequate. Consequently water and air-borne diseases were rampant and took a huge toll of life. The mortality-rate was very high and infant mortality rate was quite alarming—about 218 per thousand life expectancy was also very low-32 years.