Question

Explain the features of Indian economy on the eve of independence.

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Answer 1

Features of Indian economy on the EVE OF INDEPENDENCE

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⇢ Stagnant Economy

• On the eve of independence, Indian economy was completely a stagnant economy. A stagnant economy is the one which shows little or no growth in income.

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⇢ Backward Economy

• Indian economy was a backward economy on the eve of independence. An economy is called backward economy when it has a very low per capita income.

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⇢ Dominance of Agriculture

• Agriculture sector dominated the Indian economy as the principal source of livelihood.

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⇢ Bleak Industrialisation

• Prior to the British rule, industrial sector in India was well-known for handicrafts, But it was systematically destroyed by the discriminatory British policies.

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⇢ Heavy Dependence on Imports

• The country was heavily dependent upon imports, particularly for machinery and related equipment of production.

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⇢ Limited Urbanisation

• At the time of independence, bulk of the population of India lived in villages. Rural population lacked opportunities outside agriculture. This compounded their poverty.

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⇢ Semi-feudal Economy

• On the eve of independence, Indian economy was neither wholly feudal nor a capitalist economy. It was a mixed or a semi-feudal economy.

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★ Briefly, we can state that on the eve of independence, Indian economy was characterised with low level of economic development.

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