Introduction

Ancient India flourished in every sphere of life. The Indian economy on the eve of independence started to drop as quickly as the British stepped foot on Indian soil. The rural, manufacturing and other sectors of India’s economy and planning were all exploited. The nation could not supply sufficient food for its population due to diminishing soil fertility. Even India’s few sectors weren’t enough to keep the country’s economy afloat.

The infrastructure was decaying, and the British government’s primary goal was to increase revenue. The resources that remained were devastated by the Second World War. To achieve freedom, the Indians had to forsake all other areas of existence. The actions of the colonial authorities seemed to be the nail in the coffin for the Indian economy.

The British dispersed well before Asia’s long-running cloth manufacturing industry. Industrialization arose as a result of this. Indians were obliged to import British products, which sparked the revolution. During the British occupation of India, the industries began to disintegrate.

Features

• Poverty is widespread in the country, with many individuals unable to meet their food, shelter, and clothes. Poverty and illiteracy were two more difficulties that the government had to deal with.
• Communication, transportation, power, and energy infrastructure were all undeveloped.
• Significant reliance on imports due to the country’s industrial backwardness, various consumer items, including medications, were imported overseas.
• Limited urbanization because the bulk of the public resided in villages, they had fewer options outside of agriculture.
• Because India was a British empire, the British exploited the Indian economy and planning.
• The country’s economy grew slowly or not at all. There was poverty, death, and misery due to stagnation’s lack of food.
• Even though agriculture employs 70% of the population, it only contributes 50% of GDP. Productivity and production were also at an all-time low.
• The country’s manufacturing industry was underdeveloped, with a scarcity of primary and key sectors.

The economic development in India on the eve of Independence with the various sectors

The level of occupational structure development in Indian economy on the eve of Independence

Agriculture was the first considered source of income and occupation in the Indian economy on the eve of Independence, with over 72.7 percent of the working population employed in this industry. Only 10.2 percent of the working population, on the other hand, worked in the industrial sector. Aside from that, 17.2% of the workforce was employed in the service or tertiary area of the business. On the eve of Independence and later, this resulted in modest growth of the Indian economy’s tertiary or service sector. On the eve of Independence, the Indian economy had an imbalanced boom.

The level of demographic condition in Indian economy on the eve of Independence 

On the eve of Independence, India’s economy was characterized by high birth and death rates. This meant that the citizen’s life expectancy was poor, hovering about 8% per year. The rate of average lifespan was likewise relatively low. On the eve, the Indian economy was described and demonstrated a lack of health care facilities, awareness, and all means for health care for 32 years. Only 16 percent of the population was literate. This demonstrated our country’s social and economic backwardness.

The level of agriculture development in Indian economy on the eve of Independence

It is a well-known fact that agricultural practices account for more than 70% of India’s national income. Before 1947, agricultural activity provided almost 95 percent of the country’s income. Over 85% of the country’s people lived in communities where agriculture was their sole source of income. In terms of agriculture, the Indian economy on the brink of Independence was depressing. One of the most significant Indian sectors stagnated and deteriorated for a long time.

The Industrial Sector under British rule

When the British arrived in India, they intended to stifle its flourishing industrial phase. They began to gain control of the apparel industry and attempted to stifle the work of artisans. The British devised a strategy to decentralize these thriving businesses. With decentralization, the British attempted to accomplish two goals.

• India’s export volume was elevated to the forefront. India’s raw ingredients were shipped directly to the United Kingdom. Whereas India used to be a significant exporter of manufactured handicrafts, it is now mostly a supplier of raw materials.
• The British misrule in India contributed to the decline of the handicraft sector. The Indian handicraft sector suffered as a result. The British used a discriminatory tariff to undermine the Indian handicraft sector, allowing unrestricted export of raw materials through India to Britain and uncontrolled importing of finished items from Britain to India. The export of handicraft products from India, on the other hand, was subject to a hefty tariff.
• The finished goods produced in the United Kingdom were machine-made and were of higher quality and lower cost than the Indian handicraft ones. Many businesses in India have closed as a result of this.
• During this time, the British also built railways in India, which helped them extend their market for low-cost industrial goods. This results in a drop of demand for higher-priced handcrafted items and the Indian handicraft industry’s demise.

Conclusion

Foreign trade is critical to a country’s economic development and earnings. Although being self-sufficient and independent is desirable, overseas trade and globalization are essential for a country’s success. On the eve of Independence, India’s economy and planning was in dire straits in foreign commerce. Due to the British-imposed laws, none of India’s products or skills were recognized. As a result, the structure, composition, and amount of the country’s foreign commerce and income are negatively impacted.