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INDIAN'S ECONOMY AT INDEPENDENCE (SITUATION AT INDEPENDENCE (SHOWED…
INDIAN'S ECONOMY AT INDEPENDENCE
SITUATION AT INDEPENDENCE
SHOWED ALL FEATURES OF UNDERDEVELOPED
73% WORKFORCE IN AGRICULTURE
18% LITREACY
LIFE EXPECTANCY 32 YEARS
POVERTY : 50%+
LESS THAN 2% WORKFORCE IN ORGANISED MANUFACTURING LESS THAN 2.7% IN BUREAUCRACY
INDIA WAS TRAPPED INTO POVERTY TRAP OR LOW EQUILIBRIUM TRAP
STAGNANT PER CAPITA INCOME AND ABYSMAL STANDING OF LIVING
WHY THIS STATE?
BECOZ OF DEINDUSTRIALIZATION AND SUBORDINATION OF INDIAN ECONOMY
WHOLE PRESSURE CAME ON LAND
THUS AGRICULTURE BECAME OVERBURDENED AS SOLE SOURCE OF LIVEIHOOD AND SURVIVAL
AND AGRICULTURE TOO GOT STAGNATED:
BECOZ OF REGRESSIVE ZAMINDARI SYSTEM
AS MORE FOCUS ON RENT RATHER INCREASING PRODUCTIVITY OF LAND
MORE CASH CROPS ENCOURAGED TO FILL THE REVENUE
FARMER LOST EVEN HIS SUBSITENCE
INDUSTRY
VERY FEW INDUSTRIES DEVELOPED IN INDIA BEFORE INDEPENDENCE
MAJORLY TEXTILE
IRON AND STELL IN LATE 20TH CENTURY
SUGAR CHEMICAL, CEMENT
INDIA WAS LACKING IN CAPITAL GOODS
SO ENTIRE CAPITAL GOODS INDUSTRY WAS TO IMPORTED
CAPITAL MARKET
DOMINATED BY FOREIGN INVESTMENT.
IT HAD MULTIPLIER EFFECT BUT FOR FOREIGN ECONOMIES
RAILWAYS COMPLETED THE DEINDUSTRAILZATION
LEADING TO DRAIN OF WEALTH
CONTRIBUTED TO GUIDED - UNDERDEVELOPMENT OF INDIA
BY CONCENTRATING ON EXPORT OF RAW MATERIAL
LACK TO INDIAN BANKS AND INSURANCE COMPANIES TO SUPPORT INDIAN INDUSTRIES
POSITIVES
INDUSTRIES DEVELOPED DURING 1930'S-40'S
IMPARTED STRENGTH & PROVIDED BASE FOR POST INDEPENDENCE ECONOMIC DEVELOPMENT
THIS LED TO SMALL INDIGENOUS INDUSTRIALIST CLASS LIKE TATA
SWADESHI AND 1ST WORLD WAR
MADE INDIA SELF SUFICIENT IN CONSUMER GOODS LIKE SOAP, PAPER ETC
INDIA HAD SMALL BUT A HIGHLY SPECIALIZED EXPERTS
HOMI BHABHA, VIKRAM SARBHAI, VERGESSE KURIEN
THUS AT INDEPENDENCE
THERE WAS INDIGENIOUS ENTERPRENEURIAL CLASS:
WHICH WORKED AS MAJOR AGENCY TO CARRY FORWARD DEVELOPMENTAL PLAN UNLIKE SEVERAL AFRICAN COUNTRIES
WHICH BORROWED INDIAN GRAND MODEL BUT LACKED INDIGENOUS AGENCY TO CARRY IT THROUGH