BRITISH POLICIES AND THEIR IMPACT ON INDIA

AGRICULTURAL SECTOR

• During the pre-British period, the condition of Indian Agriculture was not at all satisfactory.
• Nearly 85% of the country’s population lived mostly in villages and derived livelihood, directly or indirectly from agriculture.
• Even with this large proportion of the population engaged in agriculture, the country was not self-sufficient in food and raw material for industry.

Agriculture on the Eve of Independence:

1. Low Production and Productivity:

Production refers to the total output and Productivity refers to output per hectare hand, both were very low at the time of Independence.

2. High Degree of Uncertainty: Agriculture in India was heavily dependent on rainfall, due to the lack of permanent means of irrigation (dams, wells) and no efforts by Britishers were made to strengthen the agricultural sector.
3. The dominance of Subsistence Farming: Subsistence farming means farming that is done just to meet the basic needs of the farmer (and his family). In India, subsistence-based farming was done resulting in little or no surplus left for sale meaning that there was a lack of commercial outlook. This lead to the backwardness of the agricultural sector and the nation.
4. Difference/Gulf between the Owners of the Soil and the Tillers of the Soil: The owners of the soil shared the output with the tillers but they did not share the cost of production. The owners were simply interested in increasing their income in terms of share of output. For tillers agriculture was a source of subsistence and for the owners, it was a source of income without investment creating a wide economical gap between two.
5. Small and Fragmented Holdings: There were small and fragmented landholdings leading to low output at a high cost of production, therefore, landholdings were uneconomical.
6. Zamindari System or Land Revenue System under the British Raj:

During the British Rule, a unique land revenue system was introduced in India. Under this system, a triangular relationship was set up between the government, the owners and the tillers of the soil. This system was called “The Zamindari System”. 

Features of the Zamindari system are as follows:

• • Zamindars were recognized as the permanent owners of the soil.
  • Zamindars had to pay a fixed sum or revenue to the government as land revenue and if they were unable to do so, they stood in danger of losing their rights.
  • Zamindars were free to extract as much as they want from the tillers of the soil as they wished and could.

Problems with the Zamindari System:

• Unlimited exploitation of the tillers of the soil by the zamindars.
• High rates of land revenue to be paid by tillers.
• Tillers were reduced to the status of landless laborers resulting in earnings just to meet their basic needs.

Forced Commercialisation of Agriculture:

Commercialization meant that there was Shift from cultivation for SELF- CONSUMPTION to MARKET.

REASON: The British rule in India collided with the Industrial Revolution in Britain; therefore, this commercialization of crops was done to meet the requirement of the Indigo that was used by the textile industry in Britain for the purposes of dying/bleaching.

How was this done?

• The farmers were forced to accept the advance payments for the cultivation of the Indigo.
• Earlier farmers grew grain for their family’s consumption but now they needed cash to buy it from the market.
• There were uncertainties in the market due to which the farmers became indebted.
• This indebtedness of farmers leads to the stagnation and backwardness of agriculture.

CONCLUSION: All these reasons combined showed that the Agriculture sector on the eve of independence was backward and stagnant.

INDUSTRIAL SECTOR

• Although agriculture had dominated, the Indian Economy during the pre-British period, some Indian industries like the handicraft industries, enjoyed worldwide reputation.

Industrial Sector on the eve of Independence:

Reasons behind the decay of handicrafts:

1. Discriminatory Tariff (Tax) Policy of the State - Britishers found India's best source of raw materials and best market for their finished goods. They started the following discriminatory tariff policies:

• The export of raw materials from India tariff-free.
• The import of British Industrial products to India tariff-free.
• Heavy duty (taxes) was placed on the export of Indian Handicraft products. British finished products captured Indian markets. Therefore, the decay of the handicrafts was the result.

2. Disappearance of the Princely Courts

• At the time of Independence India was divided into two sets of territories:
• The law of British India was placed in both the central and the local governments, which means that the Princely states somehow existed under the influence of the law.
• Local rulers encouraged (patronize) the handicrafts making them reputed worldwide, with the greater influence of British law and their discriminatory policy the decay of handicrafts took place.

3. Competition from Machine- made Products-

The machine-made products from Britain were low-cost and gave tough competition to handicrafts products in India. This competition forced the Indian craftsmen to shut their enterprises forever.

4. New Patterns of Demand-

The impact of the Britishers can be seen on our culture and thinking too. This led to the emergence of the new class and new patterns of class that preferred British products to Indian products.

5. Introduction of Railways in India-

Railways were introduced in India by the Britishers for their own selfish motives in order to expand their markets for the finished products in India. Their expansion leads to decay in handicrafts.

FOREIGN TRADE UNDER BRITISH RULE

Observations:

1. Net Exporter of Primary Products and Importer of Finished Goods- India under British rule became an exporter of raw materials (cotton, wool, indigo, etc.) and an importer of finished goods. The composition of exports and imports showed the backwardness of the economy.
2. Monopoly control of India’s Foreign Trade- British government monopolized the exports and imports soft the country in a way that, More than 50% of trade with Britain only. Imports of Britain’s finished goods provided a huge market to British industry in India.
3. Drain of Indian wealth during British rule-

Despite the exports exceeding our imports, there was mass export of primary goods, which is a sign of economic backwardness. The trade surplus was used for administrative and war expenses of Britishers and not for the growth and development of the country.