British Colonial Rule
The famous Kohinoor diamond has been doing rounds in the news. It
was a prized possession of pre-colonial India which the British took
with them on their way back home. The talks of taking it back have
caused a stir in the recent past. However, it forms a very small fraction
of what our colonizers took away. As a consequence, our country was
in a grim state when they left. This forms the basis that governs our
current policies and future prospects.
The Pre-Colonial State
Before the advent of colonial rule, India was a self-sufficient and
flourishing economy. Evidently, our country was popularly known as
the golden eagle. India had already established itself on the world map
with a decent amount of exports. Although primarily it was an
agrarian economy, many manufacturing activities were budding in the
pre-colonial India.
Indian craftsmanship was widely popular around the world and
garnered huge demands. The economy was well-known for its
handicraft industries in the fields of cotton and silk textiles, metal and
precious stone works etc. Such developments lured the British to
paralyze our state and use it for their home country’s benefits.
Browse more Topics under Indian Economy On The Eve Of Independence
● Agricultural Sector
● Industrial Sector
● Foreign Trade
● Demographic Condition
● Occupational Structure
● Infrastructure
India: The British Colony
( Source:
Wikipedia)
The British came to India with the motive of colonization. Their plans
involved using India as a feeder colony for their own flourishing
economy back at Britain. This exploitation continued for about two
centuries, till we finally got independence on 15 August 1947.
Consequently, this rendered our country’s economy hollow. Hence, a
study of this relationship between the colonizers and its colony is
important to understand the present developments and future prospects
of India.
The colonial rule is marked with periods of heavy exploitation. The
British took steps that ensured development and promotion of the
interests of their home country. They were in no way concerned about
the course of Indian economy. Such steps transformed our economy
for the worse- it effectively became a supplier of raw materials and a
consumer of finished goods.
The colonial kings robbed India of education, opportunities etc.
reducing Indians to mere servants. Undoubtedly, they never tried to
estimate colonial India’s national and per capita income. Some
individuals like – Findlay Shirras, Dadabhai Naoroji, William Digby,
V.K.R.V. Rao and R.C. Desai tried to estimate such figures.
Although the results were inconsistent, the estimates of V.K.R.V. Rao
are considered accurate. Notably, India’s growth of aggregate real
output was less than 2% in the first half of the twentieth century
coupled with a half percent growth in per capita output per year. By
and large, India faced a herculean task to recover from the blows that
two centuries of colonial rule landed on its economy.
Solved Example for You
Q: Name some individuals who tried to estimate colonial India’s per
capita income.
Ans: Some individuals like – Findlay Shirras, Dadabhai Naoroji,
William Digby, V.K.R.V. Rao and R.C. Desai tried to estimate such
figures. Although the results were inconsistent, the estimates of
V.K.R.V. Rao are considered accurate. An estimate was the best that
could be calculated. The estimate was that colonial India’s growth of
output was less than 2%.
Agricultural Sector
Did you know that the deaths due to starvation alone during British
rule are estimated to be between 15 to 29 million? Such numbers
indicate the adversities of colonial India. The pre-colonial India was
primarily producing two crops– rice and wheat. Despite this, it was
self-sufficient and sustainable. The incidence of colonization forced
changes in the agricultural sector such as commercialization.
The Pre-Colonial Scenario of Agricultural Sector
During the pre-British era, a major part of India’s population was
dependent on agriculture. The farming technologies and irrigation
facilities were not satisfactory. However, agriculture in villages was
self-sustaining and independent.
The village communities either purchased or consumed the raw
materials and articles directly. Consequently, starvations and famines
were rare if not frequent. Of course, agricultural practices remained
primitive, but the villages functioned independently and were
self-sufficient. All of this went for a toss when the Britishers set feet
on the Indian subcontinent.
The Colonial Saga
Britishers were keen on establishing a monopoly in India. They saw
India as a means to drive their home country towards a state of
unmatched power. Colonisers drew out every ounce of Indian resource
and every drop of Indian blood for their selfish motives. Such was the
state of exploitation.
During the British rule also the Indian economy remained agrarian.
Rough estimates claim that about 85% of the economy derived their
livelihood directly or indirectly from agriculture. Though, unlike the
pre-colonial India, the feature of self-sufficiency vanished in the
colonial state. This led to various famines which the colonizers paid
no heed to provided it didn’t affect their profit margins. Effectively,
the agricultural sector continued to experience deterioration and
stagnation, particularly marked by low levels of agricultural
productivity.
Stagnation of Agricultural Sector during British Rule
The Indian agricultural sector, which supported almost the entire
economy, went towards stagnation. There was a negligible
introduction of reforms to ensure an increase in productivity. On the
contrary, the Britishers continued to extract profits which broke the
knees of Indian agricultural sector.
The major cause of this sorry state of Indian agriculture was the
various land settlement systems of the colonial government. The
highlight of this was the zamindari system which was practiced in the
then Bengal presidency. Under this, the majority of profits went to the
zamindars instead of the cultivators, ultimately filling up the pockets
of their colonial bosses.
Just like their colonial masters, the zamindars did nothing to improve
the state of agriculture. They were only concerned with collecting rent
despite the economic condition and the plight of the cultivators.
However, the revenue settlement policy particularly fuelled this
ruthless nature adopted by the zamindars. Under this, the rent can be
paid until a fixed date, failing which their colonial masters would take
away all their rights.
Other Factors
Agricultural technologies remained primitive with no efforts to
improve conditions from the British side. Even after the introduction
of fertilizer technology farmers used natural manure, which resulted in
low yields. This coupled with lack of proper irrigation facilities
aggravated the misery.
The motive behind agricultural activities shifted from
self-sustainability to commercialization focused upon the increase of
profits of colonials. As a result, there was an increase in the yield of
cash crops, but it helped the farmers in no way. Farmers were now
mass producing cash crops instead of food crops, which were
ultimately used for the benefit of British industries. These cash crops
include cotton, jute, oilseeds, sugarcane, tobacco etc.
Additionally, at the time of partition, a large portion of fertile and
highly irrigated land went to Pakistan, especially the jute producing
areas that went with East Pakistan (now Bangladesh). Hence, the jute
industry received a heavy setback. By and large, the Britishers further
added to the plight of Indian agricultural system and left with an
enormous task ahead of us.
Solved Question for You
Q: What was the main interest of the zamindars?
a. Collect Rent
b. Improve farmlands
c. Insure farmers from losses
d. All of the above
Ans: The correct option is “A”. The only interest the Zamindars had
was to collect the rent from the farmers. They did not particularly care
about the welfare of the farm or the farmer.
Industrial Sector
Are you aware of the fact that Britishers should be thankful to us for
their Industrial revolution? Notably, this industrial sector revolution
was given birth by de-centralizing the long-standing cloth production
industry of pre-colonial India. Indians were forced to import British
goods, which eventually gave support to their industries.
The Pre-Colonial Industrial Sector in India
Before the rise of the British empire in India, it was known for its
handicraft industry. Evidently, this industry enjoyed worldwide
demand and was held in a high regard. Indian craftsmanship was
applauded in all parts of the world. The textile industry was among the
most important urban handicraft industry. Articles made up of wool,
cotton and silk were famous both inside and outside the country’s
boundaries.
Additionally, various metal industries, stone carving, marble work,
shipbuilding and tanning and leather industries were taking shape.
These industries potentially accelerated India’s growth, establishing it
on the world map. However, the British Raj took every step to ensure
that this wasn’t the case.
Industrial Sector under British Rule
On setting foot in India, the Britishers were looking to cripple out the
blooming industrial phase. With this in mind, they eyed the aforesaid
industries. In effect, they chalked out a plan to decentralize these
flourishing industries. This de-centralization served two purposes.
Firstly, Indian export volume was made dominant with raw materials
directed to Britain. Effectively, from a prominent exporter of
manufactured handicraft items, India was reduced to a mere exporter
of raw materials. Secondly, this ensured that there was a low level of
local supply to meet Indian demands for finished goods. Hence, India
was forced to turn towards British to meet its demands.
Furthermore, the downfall of aforesaid industries gave rise to
large-scale unemployment. Interestingly, colonials shrewdly erased
this unemployment, identically born as a result of their policies, by
offering employment for working in tea, coffee, indigo plantations and
jute industries, completely owned by the colonials. At the same time,
increased local demand was being profitably met by the British
imports.
During the second half nineteenth century, the modern industry began
taking shape in India at a very slow pace. The notable ones are cotton
and jute textile industries. However, the cotton industries confined to
western parts of India were controlled by Indians. Whereas, the jute
textile industries, controlled by foreigners, were limited to the Eastern
part (Bengal).
Further, some other industries started coming up after the second
world war for example- sugar, paper, cement, steel, and iron industry.
Notably, 1907 saw the incorporation of the Tata Iron and Steel
Company (TISCO).
Other Factors
Also, there was a dearth of capital goods industries. These industries
are responsible for producing machines which in turn produce
consumption goods. In essence, these are essential from the
manufacturing point of view. Although there was an establishment of
some units, the slow development could never fill the void of the
textile industry.
This coupled with minimal operation of the public sector ( railways,
power generation, communications, ports and some other
departmental undertakings) defined the sorry state of Indian industrial
sector under the British.
The Colonials continued pacifying their interests by setting up
industries like jute, tea, coffee plantations etc. taking advantage of a
rich geographical diversity of their colony. Conclusively, the British
exploitation spread rapidly to all sectors of India and the industrial
sector was among the ones worst affected.
A Solved Example for You
Q: Which of the following formed the backbone of Indian industrial
sector before colonization:
A. Steel and Iron
B. Cement
C. Urban handicrafts
D. None of the above
Ans: The correct answer is ‘C’. Pre-colonial India was known for
excellent craftsmanship and saw high demands for outputs from the
urban handicraft industry.
Foreign Trade
Before the colonial period, India was a big player in the foreign trade.
Having established itself well on the world map, pre-colonial India
was blooming with opportunities. At the beginning of 19th century,
the share of India in the world economy was around 20% which was
steadily increasing. By the time British left India the share was
reduced to around 4%. Thus the colonial rule paralyzed the foreign
trade also by a large proportion.
Foreign Trade in the 17th and 18th Century
Pre-colonial India enjoyed a worldwide market for its manufactured
products. The excellent levels of craftsmanship were held in high
regard and enjoyed a global reputation. Notable ones are handicrafts
and textile industries. Shawls and carpets from Kashmir and Amritsar,
silk sarees of Benaras and silk cloth of Nagpur are some examples.
Pre-British India also excelled in the artistic handicraft industry which
includes jewellery made of gold and silver, brass, copper and bell
metal wares, marble work, carving works in ivory, wood, stone,
artistic glassware etc. All of the above-mentioned items including
cinnamon, pepper, opium, indigo etc. constituted a major proportion
of exports from India. Effectively, India was exporting high quality
manufactured goods to European countries and owned a respectable
share in the world economy.
The Colonisation Effect on Foreign Trade
The Britishers aimed at diverting this large volume of trade for their
benefits. In the light of British era, the foreign trade of India with rest
of the world was cut off by the help of restrictive policies of
commodity production, trade and tariff. As much as half of the foreign
trade was restricted to Britain.
Before colonial period, India was exporting manufactured goods
which enjoyed worldwide demand. Under the colonial rule, India was
reduced to a supplier of raw materials like jute, cotton, indigo, wool,
sugar etc. and importer of finished consumer goods like silk and
woollen clothes and light machinery manufactured in the factories of
Britain. Additionally, the opening of Suez Canal intensified this
control of Britishers over Indian foreign trade.
The remaining volume of foreign trade was allowed with a handful of
countries namely China, Ceylon (Sri Lanka) and Persia (Iran).
Interestingly, even this trade was heavily monitored by the colonials.
As a matter of fact, there was a large generation of export surplus
under the British Raj.
At the same time, this export came at the cost of low productions of
essential goods like clothes, food grains, kerosene etc. Resources were
heavily being used to produce items for export, leading to an acute
shortage of civil goods.
Additionally, there was no flow of gold or silver as a result of this
surplus. Ironically, this export surplus never made its way to India. It
was used to make payments for an office set up in Britain, war
expenses of the British and import of invisible items. Such brutalities
eventually led to the dawn of a rising foreign trade aspect of India.
A Solved Question for You
Q: How was the export surplus used?
a. To make payments to a British office and war
b. Import of invisible items
c. The welfare of Indian Industry
d. Both a and b
Ans: The correct option is “D”. Britishers never meant to use the
surplus for Indian interests. It was used to make payments for an
office set up in Britain, to meet war expenses and import invisible
items.
Demographic Condition
The motive behind colonization was to reduce India to a feeder
economy. Evidently, death, famines and misery was a common feature
of colonial India. Did you know the first official census by British was
recorded in as late as 1881? This was because the Britishers were least
interested in Indian demography. Notably, the demographic data
collected since 1881 clearly indicates the plight of Indian colony.
Demographic Condition in Colonial India
As discussed, the colonial government took no interest in conducting a
census in India before 1881. In such a state, this job was taken up by
some individuals like Findlay Shirras, Dadabhai Naoroji, V.K.R.V.
Rao etc.
However, the demographic data collected was not consistent and
accurate. Notably, the estimates of V.K.R.V. Rao are considered the
best. It was not until 1881 that the colonials were interested in
studying Indian demography.
The colonial rule is characterized by two centuries of exploitation.
Mostly, the policies and steps taken aimed at fulfilling British
interests. Indian citizens were treated as slaves and servants. Under
their colonial masters, they were deprived of even basic human
amenities.
Thus hunger and deaths became a feature of colonial India. These
coupled with famines and influenza epidemic proved to be disastrous.
Evidently, the life expectancy in India hit an all-time low under the
colonial rule.
The Official Demographic Data
The first census revealed unevenness in Indian population growth.
Thereafter, a census was carried out every 10 years. Before 1921 India
was in the first stage of demographic transition. The second stage of
transition began in 1921. However, at this stage, both population
growth rate and the total population was very high.
Literacy levels were around 16 percent. Furthermore, the female
literacy rate was 7 percent. This means that a majority of the Indian
population was illiterate with even worse conditions for women. The
Colonials took no steps to change the scenario. On the contrary, they
emphasized on snatching education away from Indian slaves reducing
them to mere servants.
Colonial India was fighting to fill its empty stomach. This plight was
further aggravated by the scarcity of public health facilities. A hunger
stricken state was thus also a victim of rampant air and water-borne
diseases. Consequently, life expectancy was recorded to be 32 years!
Then again mortality rates were skyrocketing, with infant mortality
rate at 218 per thousand.
There are no official records about poverty. Though it can be clearly
concluded that widespread poverty was a common sight. Thus Indian
population had to live in abject poverty, constant fear of diseases,
starvation, and death. In a nutshell, the Indian demographic profile
during colonial rule was horrible for human standards.
A Solved Example for Reference
Q: When was the first official census of colonial India recorded?
a. 1799
b. 1830
c. 1890
d. 1881
Ans: The correct option is “D”‘. The first official census conducted by
the British government in India was in 1881, and this was also done
after much delay.
Occupational Structure
“I do not hesitate to say that half our agricultural population never
know from year’s end to year’s end what it is to have their hunger
fully satisfied.” This is the exact statement given by Sir C.A. Elliot, a
lieutenant governor of then Bengal presidency, to the British
government. This is the most compelling evidence of unemployment
and poverty in British hit India. Such words from the mouth of a
colonial official itself make us realize the adversities of British rule.
Let us take a look at the occupational structure before independence.
Employment in India before Colonisation
Pre-British India was sprawling with opportunities. Popularly known
as the golden eagle, it was among the most important contributors to
the world economy. Pre-colonial India saw traders from all around the
world. Urban handicraft industry was a highlight of the then industrial
sector. But various other industries, although sparse, were arriving on
the scene. The sprawling industrial sector promised a bright future.
This gave birth to a number of employment alternatives.
People found employment in the industrial sector (dominated by the
urban handicrafts) and agricultural sector. Skilled craftsmen formed
the majority of these workers. Evidently, India was known for its
excellent craftsmanship. Additionally, individual villages were
self-sufficient and the village communities directly consumed these
outputs.
Some other occupations were- tending cattle, weaving, goldsmith,
pottery, washermen, carpentry, cobblers, surgeons etc. Sadly, all these
affirmations went away with the dust since the advent of the East
India Company.
Browse more Topics under Indian Economy On The Eve Of Independence
● British Colonial Rule
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● Industrial Sector
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● Demographic Condition
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Occupational Structure of Colonial India
The colonial exploitation forced India to transform from a country of
combined agricultural and manufacturing activities to a colony
fulfilling Britain’s interests. The Colonials carried out a
decentralization of the Indian industries. This forced India to become a
mere exporter of raw materials to Britain.
The Indian economy under colonial rule became primarily agrarian.
The workforce was diverted towards tea, indigo and coffee
plantations. People left with no other option after the downfall of
industrial sector either flocked to these plantations or were forced by
the colonials to do so. Evidently, the agricultural sector accounted for
the largest share of the workforce which was around 70-75%. The
manufacturing and the services sectors accounted for only 10 and
15-20 percent respectively.
Also, there were increasing regional variations under the British rule.
There was a decline in the workforce on agriculture in the parts of the
then Madras Presidency, West Bengal and Maharashtra coupled with
an increase in the workforce on manufacturing and services sector. At
the same time, there was an increase in the workforce in agriculture
for Orissa, Rajasthan, and Punjab.
By and large, there was a drastic change in the occupational structure
after the advent of colonization. The selfish interests of colonials
completely transformed the volume of the workforce.
A Solved Example For You
Q: The share of the agricultural sector in the Indian workforce under
colonial rule was:
A. 70-75%
B. 50%
C. 10-20%
D. 90%
Ans: The correct option is ‘A’. The Indian economy became agrarian
with 70-75% of workforce depending on the agricultural sector for
livelihood. And this trend continued even post independence. But now
our dependence on agriculture is slowly decreasing.
Infrastructure
If we start noting the pros and cons of British rule over India, the
negatives column would definitely outgrow the positives. However,
the infrastructure development, especially the railways, will certainly
be one positive if not all. Ironically, as was with all colonial moves,
the idea of railways again gained momentum to strengthen the British
monopoly which was already on a high. Evidently, between 1860 and
1940, total railways route miles increased from 838 to 41,852.
Infrastructure in Pre-colonial India
The state of infrastructure during the pre-British India was very poor.
The transportation and communication lines were below average. In
fact, most of the villages lacked connectivity by pucca roads.
Consequently, natural dusty tracks were the roads predominant in
India. However, such roads spelt misery during monsoons as they
became muddy and difficult to traverse.
Additionally, during natural calamities, these roads became
unfunctional as a result of which various areas became inaccessible
and were cut-off. Animal-drawn carriages were the most common
mode of transport. This meant it would generally take a lot of days to
travel to other places. Hence the movement of passengers and freights
was very inefficient and slow.
Water transport was not very popular except in some parts of North
India where rivers were navigable. In a nutshell, the pre-colonial state
of infrastructure in India was far below satisfactory and the Britishers
were responsible for most of our infrastructure development.
Infrastructure Development in British India
In their long history of two centuries of exploitation, Britishers did
everything to drain Indian wealth and support their home country. The
poor state of infrastructure was a major hurdle to this process.
Transportation of materials from the countryside to ports was
inefficient and time-consuming. In fact, various routes became
inaccessible due to an absence of permanent roads. Development of
infrastructure was thus a necessity to empower colonial motives.
Hence, the development of telegraphs, roads, railways, ports, ports
and water transport was aimed at British empowerment rather than
providing basic amenities to people.
Browse more Topics under Indian Economy On The Eve Of Independence
● British Colonial Rule
● Agricultural Sector
● Industrial Sector
● Foreign Trade
● Demographic Condition
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The Various Aspects of Infrastructure Development
The roads in pre-colonial India were not fit for modern transport and
acted as a major hurdle for colonial administration. As a
countermeasure, various British officials called for the development of
roads. The roads which were built facilitated mobilization of the
British army and eased out the movement of raw materials from the
countryside to the nearest railway station to ultimately a port on it’s
their way towards Britain. However, the Britishers did not want to
spend money for development in a colony. Thus a shortage of funds
always prevailed.
The introduction of a railway system in 1950 completely revamped
the infrastructure. It is considered as a bright side to the colonial rule
if it had one. Initially, the government searched for British private
companies keen to invest in this plan. But companies refrained from
such an investment.
After certain negotiations, the Indian railway system started taking
shape. Eventually, at the beginning of 20th century, the colonial
government bought all the railway tracks and entered into the process
of direct investment. This development helped in breaking the
geographical and cultural barriers in India. People could now
undertake long-distance travel easily.
But again this led to commercialization of agriculture, profits from
which never reached Indian people. This accelerated the exploitation
of Indian resources. Consequently, the negative side outweighed the
social benefits Indians gained from the introduction of railways.
The British also introduced inland waterways and sea lanes, telegraph
and improved postal service. However, most of the canals became
uneconomical and eventually inoperational. The government
exclusively used telegraph facility to maintain law and order.
The postal service was an essential facility for the general public.
However, it remained inadequate due to lack of development. For the
most part, infrastructural developments undertaken by colonials
ensured fulfilment of selfish motives.
A Solved Example for You
Q: Why did the colonial government invest in a railway system?
a. To help break geographical barriers
b. To ease transportation of raw materials
c. Mobilisation of army
d. Both ‘b’ and ‘c’
Ans: The correct option is “D”. The Britishers had very greedy
motives to develop railways in India. They ultimately only looked
after their own needs of transporting raw materials and mobilization of
their army with ease.
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