What are the characteristics of Indian economy during the British period?

I. Introduction: The British captured political power in India in 1757 A. D. They ruled India from 1757 to 1947 A. D.
Characteristic of Indian Economy:
1. During the British period there was a continuous e!ploitation of economic resource and material wealth which resulted in
the permanent loss of India"s #ational wealth.
$. The British plunder of Indian wealth assumed %arious forms &hief among them were '
( )odified land tenure system .
( Impro%ed irrigation systems.
( &reation of railways.
( Industrial transformation.
*. Agriculture +ecame commerciali,ed and plantation -ute and other agro(+ased industries were de%eloped.
4. There was a stiff competition to indigenous products through British e!port of machine made goods.
5. .ince the British followed discriminatory tariff policy the local te!tiles and other artisan +ased industries were suppressed.
/. There was an enormous decline in real per capita income decrease in wages enormous decline le%el and su+stantial rise in
po%erty and unemployment in India during British period.
7. All this led to slow growth of agro(+ased industry and industriali,ation of indigenous manufactures.

What are the basic characteristicsof Indian Economy?
1. Low per capita income:
0nder de%eloped economy is characteri,ed +y low per capital income. India
per capital income is %ery low as compared to the ad%anced countries. 1or
e!amplethe capital income of India was 4/2 dollar in $222. 3here as their capita incomeof
0...A in $222 was 4* times than India.
This trend of difference of per
capitai ncome +et ween under de%el oped and ad%anced count r i es i s g
r adual l yincreasing in present times. India not only the per capita income is low
+ut alsothe income is une5ually distri+uted. This mal(distri+ution of income and
wealthma6es the pro+lem of po%erty in ore critical and acute and stands an o+stacle
inthe process of economic progress
2. Heavy Population Pressure:
The Indian economy is facing the pro+lem population e!plosion. It
isclearly
e%i dent fr om t he t ot al popul at i on of I ndi a whi ch was 12$. /7 cores
i n $221census. It is the second highest populated country &hina +eing the first.
India"spopul at i on has r eached 112 cor es. Al l t he under de%el oped c
ount ri es arecharacteri,ed +y high +irth rate which stimulates the growth of
population7 thefast rate of growth of population necessitates a higher rate of economic growth
tomaintain the same standard of li%ing. The failure to sustain the li%ing
standardma6es the poor and under de%eloped countries poor and under de%eloped.
3. Predominance of !"riculture:
8ccupational distri+ution of population in India clearly reflects the +ac6wardnessof
the economy. 8ne of the +asis characteristics of an under de%eloped economyis that
agriculture contri+utes a %ery large portion in the national income and a%ery high
proportion of wor6ing population is engaged in agriculture
#. $nemployment:
There is larger unemployed and under employment is another important featureof
Indian economy. In under de%eloped countries la+or is an a+undant factor. It isnot possi+le
to pro%ide gainful employment the entire population. 9ac6 of
-o+opportunities disguised unemployed is created" in the agriculture fields.
Theredeficiency of capital formation.
%. Low &ate of Capital 'ormation:
In +ac6ward economics li6e India the rate of capital formation is also low. capitalformation
mainly depends on the a+ility and willingness of the people sa%e sincethe per capita
income is low and there is mal(distri+ution of income and wealth
Meaning of population
A population is a summation of all the organisms of the same group or species who li%e in the same geographical area and
ha%e the capa+ility of inter+reeding.:1;:$; In ecology the population of a certain species in a certain area is estimated using
the 9incoln Inde!. The area that is used to define a se!ual population is defined as the area where inter(+reeding is potentially
possi+le +etween any pair within the area. The pro+a+ility of inter+reeding is greater than the pro+a+ility of cross(+reeding
with indi%iduals from other areas. 0nder normal conditions +reeding is su+stantially more common within the area than
across the +orderI*;
List of country by population
1 &<I#A
$I#DIA
*0#IT=D .TAT=.>
4I#D8#=.IA
5B?A@I9
Difference between developed economy and less developed economy
(eveloped economyLess developed economy
Population low +irth rate
higher life
e!pectancy
low death rate due to
+etter medical
facilities
De%eloping countries
ha%e higher rate of natural
increase. Death rates ha%e
fallen faster than +irth
rates7 +irth rates are
significantly higher than
aging population

in de%eloped countries
whereas death rates are
only somewhat higher
than in de%eloped
countries. Tradition lac6
of contraception po%erty
and lac6 of education are
the main causes of high
population growth rate.
Education <igh le%el of literary
<ighly trained
wor6force. 3or6ers
are paid high rates of
wages.
9ow le%el of literacy with
low s6ill le%els of the
wor6force results in low
wages of the wor6force.
Ao%ernment is the main
pro%ider of education
ser%ices and ha%e low
percentage of pu+lic
e!penditure allocated for
education.
Economic
structure
These economies
usually ha%e a larger
tertiary sector and
most of the
wor6force is engaged
in ser%ice industries.
The country
produces and e!ports
high technology
products or high
%alue added goods.
Brimary sector is the
ma-or contri+utor to the
ADB of the country. 9ow
ADB per capita is there.
0sually e!ports
agricultural goods or
natural resources and
imports %alue added
goods from de%eloped
countries.