Before the advent of British colonial rule, India had the ruled by Mughals, Marathas, Local kings, and Nawabs in different parts of India. The economy was largely rural but was independent and self-sustaining. Agriculture was the main source of livelihood for most people in India. Those days agricultural cultivation was mainly for consumption purposes and very little was kept for the market. The village community was composed of different groups based on a simple division of labour consisting of weavers, goldsmiths, potters, washermen, carpenters, cobblers, oil pressers, barber-surgeons, etc. It was a self-sufficient and flourishing economy. Farmers were cultivating in their separate land with a large number of food and non-food crops raised. They used wooden ploughs, manures, seeds, and artificial irrigation to supplement rain. Wells and tanks were the main sources of irrigation. The seventeenth century saw the introduction of two major crops, tobacco and maize, and a variety of edible fruits brought by the Moguls and Portuguese. There was a substantial increase in the production of indigo, mulberry, poppy, and sugarcane during the seventeenth and early eighteenth centuries. India was also a hub of various kinds of manufacturing activities, particularly well known for its handicraft industries in the fields of cotton and silk textiles metal and precious stone works, etc. Indian products had a worldwide reputation for the fine quality of material used and high standards of craftsmanship. It had large exports and accepted gold and precious/semi-precious stones in exchange. Our country was popularly known as the golden eagle. India had already established itself on the world map with a decent amount of exports. Its dependency on imports was minimal
The economy during the British Colonial Government:
During British rule, there was some infrastructural development in areas such as railways, ports, water transport, posts, and telegraphs. However, the motive behind this development was simply to foster the colonial interest of the British government. They were never interested in the growth of the Indian economy.
India served as both a significant supplier of raw goods to British manufacturers and a large captive market for British manufactured goods. The domestic productions of Indian craftsmen and weavers were destroyed. With the export of manufactured goods rendered unviable throughout British rule, India’s share of global manufacturing exports dropped from 27% to 2%.
The British Colonial Government mercilessly siphoned off the wealth of India. According to Ms.Utsa Patnaik in her published research, the British colonial regime looted nearly $45 trillion from India from 1765 to 1938. The amount looted is said to be 15 times the annual GDP of the UK today. The Cambridge historian Angus Maddison’s work shows that India’s share of the world’s income went from 27% in 1700 AD (compared to Europe’s share of 23%) to 3% in 1950. In 1867, Dadabhai Naoroji put forward the ‘drain of wealth’ theory in which he stated that Britain was completely draining India. He mentioned this theory in his book Poverty and Un-British Rule in India. Former Prime Minister of India Dr. Manmohan Singh put it “The brightest jewel in the British Crown” was the poorest country in the world in terms of per capita income at the beginning of the 20th century.”
Related Posts:
| Indian Economy till 2008 & after 2008 | Basic Characteristics of the Indian Economy |
| Evolution of the Indian Economy | Structural Changes in the Indian Economy |
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