BI Module3a

1.
6 -BUSINESS & INDUSTRY; MODULE 3
MODULE 3: EVOLUTION OF BUSINESS & INDUSTRY IN INDIA

Structure of Indian Society, Glimpse of Economic activity in ancient times, British raj, Swadeshi
Movement, Post-Independence Scenario, License-Permit Raj, LPG Era, Economic Reforms
Since 1991, Entrepreneurship Culture in India, industrial Policy, 2014 & Changing Economic
Policy Era.
INTRODUCTION:
Society is a condition of those living in companionship with others or in a community rather than
in isolation. It is a group of people related to each other on the basis of certain factors such as
social status, roles and social networks.
The Indian society is composed of various ethno lingual groups, which are divided into religious
communities and caste groupings.
Indian society is composed of different castes, some of which are scheduled in the Indian
Constitution. The rich and powerful section of Indian society deprived them of their due for a
very long period in the past. India is inhabited by a large number of tribal people who have yet to
join the mainstream of the society.
Traditionally, Indian society is organized by caste (Varna), a system thought to have been
introduced some 3000 years ago by Aryan invaders. In India, caste pervades Islam, Buddhism,
Sikhism and Christianity. It is a socio-religious phenomenon which is embedded in Indian
culture, and although caste tends to have broken down to an extent in the cities. Indian society is
divided different classes as per the level of income they generate.
India offers astounding variety in virtually every aspect of social life. Diversities of ethnic,
linguistic, regional, economic, religious, class and caste groups cross-cut Indian society, which
is also permeated with immense urban-rural differences and gender distinctions.
FEATURES OF INDIAN SOCIETY:
Geographical unity: India is a rich land having definite territory of its own, like any other
nation in the world. The geographical unity of India is a matter of strange observation of the
Europeans living in small regions having similar cultural identification. India, i.e.,
Bharatavarsha reflects a historical significance and is the symbol of unity.
Culture: In spite of many differences between customs and traditions, one finds a fundamental
cultural unity in India. The mark of this unity can be found in the literature from the early ages.
The approach to literature, traditions and customs and philosophy is fundamentally Indian in its
1 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

1.6 -BUSINESS & INDUSTRY; MODULE 3
sentiment. A clear cultural unity is found among the people though they practice different
religious rites, and have different social intercourse.
Religious: The Hindus, Muslims, Christians, Sikhs, Parsees, Buddhists and other religious
communities live in this country. In spite of this diversity in religious belief, every Indian does
not find his religious view apart from others. Each religion in India exhibits one single feeling,
each believes in the immortality of the soul, temporary existence of this physical world. Every
religion embodies faith in invisible God, purity of thought, benevolence and pity as the true
characteristics of every individual. This inculcates the feeling of unity and patriotism among the
Indian people.
Politics: Political unity in the country is an outcome of the religious and cultural unity that has
been prevalent since the time immemorial. History has facts in its store to provide that in early
days many princes and kings rebelled against the central authority, but every rebel realized the
importance of the universal over lordship and such incidents are authoritically proved by the
Vedic literatures in which kings had tried to become universal overlords.
Varieties of races: many different races have invaded India from the very early days and
noteworthy among these are Aryans, Shaka, Huns etc. But Indian social absorbed all their racial
dissimilarity and they all became Indians and now if any one attempts to sort out these invading
races, they will find nothing. Indian social system provided them a big place of cover and solace
and as the time passed these different tribes and races established a concrete physical
identification with the local culture and civilization after the fall of Mauryan empire, so many
races came to India but, When Muslims arrived they faced only one race, i.e., the Hindus and it
proves that the early aces of Negroes, Dravidians, Aryans, the Mongols, the Greeks, the Yuchi,
Shaka, Aabhir, the Turks, the Huns had been absolutely assimilated into the four Varna of the
Indian Social System.
Indian Culture is an amalgamation of various foreign social cultures that came in the country
from to time.
VALUES IN INDIAN SOCIETY:
Indian society is the hallmark of various epical traits and values.
Dharma: It is a comprehensive doctrine of the duties and rights of an individual in an ideal

society. There is dharma for each group namely, Varna Dharmas, Jati Dharma, Kula Dharma, etc.
There is also the concept of Sadharana Dharma, i.e, Dharma which is common to all individuals
belonging to the various groups. Each authority gives its own list of the Sadharana Dharmas but
the ideal common to all these lists are virtues like truth, non-violence, self-control and
compassion.

Renunciation: It is known as Vairagya. Wealth and material gains are subordinate to virtue or
Dharma in Indian culture. A householder pursues wealth (Artha) and pleasure (Karma) while, at
the same time laying due emphasis on virtue (Dharma), but in order to reach the final stage of
development, in his pursuit of fourth puruchartha (moksha), a man should be ready to
disassociate himself with all his worldly possessions.
Karma- Karma lays down individuals responsibility for his deed and action. Its interpretation
concerns the past life, punarjanma. According to it, ones present condition of life is assumed on
his deed in the previous life and deeds in the past. In this sense, the doctrine of karma has anti-
social implications since it ignores the present social forces around the individual and has
predicament.
Social Hierarchy: As early as from the times of Dharma Sutras, the Indian society has always
made a difference between higher groups and lower groups.
Tolerance: It is in every walk of life is considered one of the greatest values. It is a fundamental
postulate of Indian philosophy that each and every kind of life contributes to the welfare of the
people ion its own way. There is no attempt to make another person to conform to ones own
ways of thinking and way of living.
Ahimsa: The Indian child of any caste or community biz brought up to respect life and not to use
violence, verbal or physical, towards other human beings at home and outside. He is also taught
to respect life in every firm. Even today one can see people putting a handful of broken rice or
wheat wherever there are ant holes. Though the monkeys, birds, rats and insects consume or
destroy more than 10 percent of agricultural products, the Indian does not kill them.
Harmony: Indian society, inspite of diversified factors, presents a harmony in every walk of life
and in various social groups living in various villages and cities. Family is the place where all the
members live I harmony.
Familism: Feeling of kinship and kins obligation is very strong in the Indian Family. It is
expected by everyone that his kins would help him in need and it is though guilty of a rich
member of the family who fails to help the needy member of his family. The kinship ties are very
wide extending not only to all members of the joint family but also to the other relatives and
members of the same caste.
Respect for Elders: Respecting ones elder is another Sadharana Dharma of every individual in
Indian society. In such a society almost all knowledge was derived through informed
communication and personal experience. As a result, the older people were looked upon as the
repositories of knowledge. But, with modern formal education with the introduction of new
sources of knowledge like books, newspapers, the radio and television, the greater knowledge
and ability of elders cannot remain unchallenged.

Nishkama Karma: In the Brihadaranyaka Upanishad, it was emphasized that man is compelled
by desire to do something. As a result, it is desire that makes man interested in doing something
and this act as the main force behind the action or deed. So Indian culture has always stressed
that one should not be attached to the results of action and that one should not be moved by
desire when one is doing something
STRUCTURE OF INDIAN SOCIETY:
Understanding Indian social structure is necessary because it explains the relations of people
with each other in society.
The evolution of Indian society structure through the ages and the shape it took today is
discussed below:
Tribes: Tribe is one of the earliest identifiable ethnic cum social organizations. A fairly good
number of tribes such as Munda, Ho, Oraon, Bhil, Gaddi, Santhal, Kol, Kandh, Khasi, Garo,
Mizo, Naga exist in different parts of India. These have clubbed together in a group in a schedule
of the constitution of India and are known as the scheduled tribes. The identification of a tribe is
as follows:
All members are related to each other by blood

All members are equal in status
All members believe that they have descended from a common ancestor
All members have equal access to the resources
The sense of private property is least visible
Social differentiation exits only on the basis of age and sex.
Tribes are very often made up of more than one clan. A clan is exogamous institution whereas a
tribe is endogamous.
Tribes existed during the Vedic Period. The Bhartas, Yadus, Turvasa, Druhyus, Puruus and Anus
wee some of the prominent tribes. The head of tribe was known as raja or king who was first
among the equals. The Major differentiation existed between people on the basis of varna or
color. Thus, the people who did not belong to the Vedic tribes were termed as dasa varna. They
are said to have had an alien language, a dark complexion and worshipped different Gods.
Varna System: this initial differentiation later developed into a complex varna system, which
in place of the Tribe had divided society into Brahmana, Kshatriya, Vaishya and Shudra
categories. These categories emerged principally because of frequent inter-tribal wars,
subjugation of the vanquished, appropriation of loot by the war-leaders, and unequal distribution
of wealth.
The members of the Brahman varna usually functioned as priests. The Kshatriyas were
associated with the political functions, the Vaishyas were mostly agriculturist and the Shudras

were the servile class. The first two varnas exploited the most numerous and productive
Vaishya varna, whereas the three in unision exploited the Shudras. The three higher varnas
were also entitled to the sacred (upanayana) thread ceremony and were known as dvijas (twice-
born).
Many changes took place in the economy during the post-Vedic period. These changes needed
new ideological support which came in the form of numerous unorthodox religious movements
such as Buddhism which ridiculed the Hindu social system. But Buddhism could not negate the
caste system completely. The Kshatriyas were considered the highest Varna in the social
hierarchy as seen by Buddhists. The Vaishyas who were exploited under Brahmanism became
members of these religions in large numbers in order to gain respectability. However, there was
no caste hierarchy within the Buddhist and Jain monastic communities. Varna/ Jati system
underwent further changes when new groups such as the Shakas, Kushanas, Parthians and Indo-
Greeks People arrived in India. The economy was also undergoing changes.
Caste System: Growth of urbanization, craft production, and trade resulted in the rice of guilds
or shreni Which in later times became castes. The behavior of guild members was controlled
through a guild court. Customarily the guild (shreni-dharma) had the power of law. These guilds
could act as bankers, financiers and trustees as well. Generally, these functions were carried out
by a different category of merchants known as the shreshthins (present day Seths of north India
and the Chettis and Chettiyars of South India). Thus the period between 500BC and 500ad saw
the crystallization of the caste system. The number of castes increased manifold because of the
growth of a number of crafts, arrival of new elements in the population, inter caste marriages
(anuloma and pratiloma) and inclusion of many tribes into caste hierarchy. The Dharmashastras
and the Smritis tried to fix the duties of each caste. The relations between castes were generally
governed by the rules of endogamy, commensuality and craft exclusiveness. Between the fifth
and seventh centuries further changes occurred in the varna/caste organization. A creation of
landlords through land grants resulted in the transformation of vaishyas into servile peasants.
Large numbers of tribal cultivators were enrolled as shudras. Consequently the shudras now
emerged as farmers like the vaishyas. Now, the vaishyas and shudras were lumped together.
However, in regions other than the ganga basin, the caste system took a different shape. In
Bengal, south India and other border areas mainly two castes emerged, i.e., the brahmanas and
the shudras. The rajputs emerged as a significant factor in the society of northern India from the
seventh century onwards. In this period caste system became so entrenched in the psyche of the
people that even the plants were divided on the basis of the varna/caste system. One text
prescribes varying sizes of houses according to the varnas.
An important development during medieval times, particularly in South India, was the division
of the shudras into pure (sat) and impure (asat) categories. Also typical of the south were the
so called left-hand (idangai) and right-hand (velangai) castes. Manu noted 61 castes whereas a
later text counted hundreads of mixed castes (varnasankara). Other than the Rajputs, another
caste that developed during this period was the Kayastha. The Kayasthas were traditionally
scribes who got transformed into a separate caste as all types of scribes got clubbed together to
form one endogamous group. Very often a large number of these castes claim origin from highly
respected ancestors and explain their current lower status in terms of economic or other factors.
The Khatris, an important caste in northern india, claim that they were of Kshatriyas origin, but
took to commerce, which brought them the contempt of their caste fellows and they had to
accept Vaishya status. The Gurjaras, Jats and Ahirs all claim Kshatriya origin, the status they
came to lose later for various reasons. This process of claiming high caste origin continued till
the 1950s when the Constitution of India provided for reservations for lower castes in most
government jobs.
The caste system has its regional variations. The formation of regions and regional consciousness
after the eighth century AD contributed to this variation. The North Indian brahmanas are divided
not only on the basis of gotra but also on the basis of their residence. Thus there are kanyakubja,
Sarayu rivver and Maithila brahmanas belonging to Kanauj, Sarayu River and Mithila
respectively. A large number of Rajput sub-castes carry theur earlier tribal names such as
Tomaras, Kacchavahas, Hadas and Chauhanas. These sub-castes also acquired gotras for
themselves. Thus the number of castes and sub-castes as well as that of the gotras kept increasing
in medieval times. The Marathas also became a caste.
Modern Caste System: In modern times the caste system acquired some new features. Thus,
the idea of surnames was also added. One particular caste-or sub-caste came to acquire one,
sometimes more, surnames. However, ample variation is found in this matter. Caste and anti-
case movements of the modern period resulted in the formation of further new castes. Thus the
brahma-samaja acquired status which is very similar to a caste.
The caste system, as can be seen from the above description, has a complex working method.
Substantial regional variation is found and hence it has been impossible to define it ion a precise
manner, region, sub-region, economic status, nearness to political authority, craft, vocation,
following a particular deity all have come to play a role in its formation and subsequent changes.
The influence of caste system has been so great that even though the egalitarian religious
reformers of the medieval; period such as Basava, Ramanand and Kabir, tried to abolish caste
among their followers, their sects soon took on the characteristics of new castes. The Sikhs could
not overcome caste feelings. Even the Muslims formed caste groups. Syrian Christians of Kerala,
earlier divided into sections, took on a caste character. The Christian converts brought their caste
prejudices with them and high caste converts consider themselves along from those of the lower
older.
CLASS STRUCTURE OF INDIAN SOCIETY:
Social class is defined as the division of members of a society into a hierarchy of distinct status
classes, so that members of each class have relatively the same status and members of all other
classes have either more or less status.
Although social class can be thought of as a continuum- a range of social positions on which
each member of society can be placed. Researchers have preferred to divide the continuum into a
small number of specific social classes or strata. Within this framework, the concept of social
class is used to assign individuals or families to a social-class category.
Social class also called class, a group of people within a society who nposses the same soci-
economic status . It is a status hierarchy in which individuals and griups are classified on the
baiis of esteem and prestige acquired mainly through economic success and accumulation of
wealth.
SOCIAL CLASS CATEGORIES:
Identification of members within each social class is influenced most heavily by education and
occupation, including income, as a measure of work success. But it I also affected by family
recreational habits and social acceptance by a particular class. Thus, social class us composite of
many personal and social attributes rather than a single characteristic such as income or
education. The social classes are described for marketing purposes in terms of the social groups
from which they are drawn in society. On the basis of demographic factors:
Upper-Upper Class: this is the wealthy, aristocratic, landed class. It acts as a reference group for
rest of the social classes. Since its size is very small, it is not a major segment; but it provides
scope for niche marketing.
Lower-Upper Class: Here we find novel rich consisting of those who have attained success and
earned wealth. Successful professionals like doctors, lawyers, first generation successful
entrepreneurs belong here. These provide market for specialized luxury goods.
Upper-Middle Class: this class consists of the moderately successful. It consists of the
professionally educated managers, intellectuals elite and successful professionals, doctors,
lawyers and professors, owners of medium-sized businesses and managerial executives and also
younger men and women who are expected to reach these occupational status levels. Housing is
important to this class, and also the appearance of products in general.
Lower-Middle Class: It is represented by the common man, and the highly paid individual
worker. It includes the small biz owners and non-managerial workers. Persons in this class tend
to have high school educations and some college education, but do not reach high levels in their
organizations.
Working class: this is the largest of the social classes and is composed of skilled and semi-
skilled workers. They are blue (Khaki) collar workers but have sufficient money for consumer
products, and along with the middle classes, they represent the market for mass consumer goods.
Within each of these social classes, there are both, under-privileged and over-privilege members
depending on whether their incomes are above or below, the average for the class. For many

products, the groups of interest to the marketer re the middle and working classes, by far the
largest segment of the market.
CASTE STRUCTURE OF INDIAN SOCIETY:
Caste is a form of social stratification characterized by endogamy, hereditary transmission of a

style of life which often includes an occupation, ritual status in a hierarchy, and customary social
interaction and exclusion based on cultural notions of purity and pollution.
Caste structure in Indian society refers to a social group where membership is largely decided by
birth. Members of such local group avoid entering into marital relationships with outsiders
CASTE SYSTEM IN INDIA:
Indias caste system has four main classes based originally on personality, profession and birth.
Brahman: consists of those engaged in scriptural education and teaching, essential for the
continuation of knowledge. People who preached spiritual teachings to the society and lived
spiritual lives were called Brahmins.
Kshatriya: Takes on all forms of public serviced, including administration, maintenance of law
and order and defense. These were the people who protected the society against external attacks
and maintained internal order. Under the Hindu Varna System, a Kshatriya is a ruler or warrior.
This Varna has traditionally been ranked second among the four varnas of the system and
members of the Kshatriya Varna have held power for centuries in India.
Vaishya: engage in commercial activity as biz men. The vaisya Varna is the third of the four
varnas in the Indian Varna system. Bizmen, traders and farmers fall under this category.
However, as the Varna system developed in the Vedic and post-Vedic period, the Viasya gave up
agriculture and turned towards occupations such as merchants, skilled laborer and land
ownership.
Shudra: Work as semi-skilled and unskilled laborers. This Varna is the lowest of the four varnas
in the Varna system in India. They are just above the Dalits/ untouchables. The population that
comprises this Varna is largely a product of metisation ( upper three varnas mating with the
untouchables and with Sudras). In addition it consists of those from the upper three castes who
were demoted to Suhdra status for violation of caste laws. Sudras were the people engaged in
services. Carpenters, blacksmiths, goldsmiths, cobblers, porters etc fall under this category,.
Though they wee looked down as dasas and dashyus, yet they are not discriminated,.
The most obvious problem in this system was that under its rigidity, the lower castes were
prevented from aspiring to climb higher and therefore economic progress was restricted. But
India is aware of the problem

Mahatma Gandhi, the father of modern of India, made the lower castes and untouchables a fifth,
lowly class with the name of Harijan or children of god. You see many references to SC and ST
in India, in newspapers, government notifications, and so on. These initials refer to Scheduled
castes and schedule tribes- Scheduled is what Harijan is translated into today. The government is
sensitive about reserving seats in colleges and job opportunities as well for them. But the
government has legislation to make-up for the past suppression and oppression of the lower
castes.
HISTORY OF ECONOMIC ACTIVITY IN INDIA
Business and industry from the backbone of an economy. Countries with strong economies have
well-developed business and industry and vice versa. Business and industry generate products
and services, which go into consumption of people. The surplus generated goes into investment
and sustains the development process. Employment generation also takes place in business and
industry, which provides livelihood to people. The government also receives revenue in the form
of taxes, levies, fees, duties, etc., that may be utilized for meeting expenditure on government
services and also for carrying out development programmes.
The traditional economies, however, heavily depend upon agriculture. Land is the main resource
in these economies and agricultural produce is the source of livelihood. Most of the people in
such economies are dependent on agriculture directly or indirectly. The nature and scope of
business and industry also depend upon the state of agriculture in such economies. The small
scale and cottage industries using farm and forest produce as inputs have been a special feature
of these economies. The shift from agrarian economy to industrial economy marks the beginning
of the process of development. This transformation is a slow process and takes place over a
period of time through sustained efforts.
The historical evolution of economy, business and industry in India is vast and diverse. The
different stages of economic activity in Indian landscape are as follows:
Glimpse of Economic Activity in Ancient Times

British Raj
Swadeshi Movement
Post- Independence Scenario
License-permit raj
LPG Era
Economic reforms India
GLIMPSE OF ECONOMIC ACTIVITY IN ANCIENT TIMES:
The history of India is one of the grand epics of world history and can be best described in the
words of Indias first Prime Minister Jawaharlal Nehru as a bundle of contradictions held
together by strong but invisible threads. Indian history can be characterized as a work in

progress, a continuous process of reinvention that can eventually prove elusive for those seeking
to grasp its essential character. Following is the history of India through the Ages: the history of
this astonishing sub continent dates back to almost 75000years ago with the evidence of human
activity of Homosapiens. The Indus valley Civilization which thrived in the northwestern part of
the Indian subcontinent from 3300-1300 BCE was the first major civilization in India. A glimpse
of economic activity in ancient times can be seen as follows:
Harappan civilization: The brightest chapter in the chalcolithic period in India is the Harappan
civilization which is also referred to as the Indus valley civilization. On the basis of the
archaeological findings the harappan civilization has been dated between 2600 BC and is one of
the oldest civilizations of the world. It is also sometimes referred to as the Indus valley
civilization because in the beginning majority of its settlements discovered were in and around
the plains of the river Indus and its tributaries. But today it is termed as the harappan civilization
because harappan was the first site, which brought to light the presence of this civilization.
Economic activities in harappan age are as follows:
1) Agriculture: it along with pastoralism (cattle-rearing) was the base of harappan economy. The
granaries discovered at sites like Harappa, Mohenjodaro and Lothal served as the storehouses for
grains. The furrows or plough-marks have been observed in a field at Kalibangan. These indicate
plough cultivation. A terracotta plough has also been reported from Banawali in Hissar district of
Haryana. The irrigation was carried on a small scale by drawing water from wells or by diverting
river water into channels. The chief food crops included wheat, barley, sesame, mustard, peas,
jejube, etc. the evidence for rice has come from lothal and Rangpur in the form of husks
embedded in pottery. Cotton was another important crop. A piece of woven cloth has been found
at mohenjodaro. Apart from cereals, fish and animal meat also formed a part of the harappan
diet.
2) Industries and crafts: the harappan people were aware of almost all the metals except iron.
They manufactured gold and silver objects. The gold objects include beads, armlets, needles and
other ornaments. But the use of silver was more common than gold. A large number of silver
ornaments, dishes, etc., have been discovered. A number of copper tools and weapons have also
been discovered. The common tools included axe, saws, chisels, knives, spearheads and
arrowheads. Stone tools were also commonly used. Copper was brought mainly from Khetri in
Rajasthan. Gold might have been obtained from the Himalayan river-beds and south India, and
silver from Mesopotamia. Bead-making also was important craft. Beads were made of precious
and semi-precious stones such as agate and carnelian. Pottery-making was also an important
industry in the harappan period. These were chiefly wheel- made and were treated with a red
coating and decorations in black. These are found in various sizes and shapes. The harappans
manufactured seals of various kinds. More than two thousand seals have been discovered from
different sites. These were generally square in shape and were made of steatite.

3) Trade: trading network, both internal (within the country) and external (foreign), was a
significant feature of the urban economy of the harappans. As the urban population had to
depend on the surrounding countryside for the supply of food and many other necessary
products, there emerged a village-town (rural-urban) interrelationship. Similarly the urban
craftsmen needed markets to sell their goods in other areas. It led to the contact between the
towns. The traders also established contacts with foreign lands particularly Mesopotamia where
these goods were in demand.
VEDIC PERIOD
The authors of the Vedic hymns were the Aryans. In the 19 th century, Aryans were considered a
race. Now it is thought of as a linguistic group of people who spoke Indo-European language
from which later emerged Sanskrit, Latin, and Greek, etc. originally the Aryans seem to have
lived somewhere in the steppes stretching from southern Russia to central Asia. From here, a
group of them migrated to north-west India and came to be called indo- Aryans or just Aryans.
The early Vedic Aryans were pastoralists. Cattle rearing were their main occupation. They reared
cattle, sheep, goats, and horses for purposes of milk, meat and hides. A large number of words
are derived from the word go meaning cow. A wealthy person was known as gomat and the
daughter called duhitri which means one who milks the cow. The word gaveshana literally means
search for cows, but it also means battle since many battles were fought over cattle. The cows
were thought of as providers of everything`. Prayers are offered for increase in the number of
cattle. All the above and many more references show that cattle breeding were the most
important economic activity of the rigvedic Aryans.
However, this is not to suggest that the early Vedic people had no knowledge of agriculture. The
evidence for agriculture in comparison with pastoral activities in the early portions is meager and
mostly late insertions. A few references show that they had knowledge of agriculture and
practiced it to supplement their food requirements. They produced yava (modern jau or barley),
which was rather a generic word for cereals.
Apart from cattle-rearing and small scale cultivation, people were engaged in many other
economic activities. Hunting, carpentry, tanning, weaving, chariot-making, metal smeltry, etc,
were the product of these activities were exchanged through barter. However, cows were the
most favored medium of exchanges. The priests received cows, horses and gold ornaments as
fees for performing sacrifices.
BUDDHISM AND JAINISM
The sequence of development in the literature dose not parallel a migration into India but the
historical development of civilization in India from the Sarasvati to the Ganges. In the 5 th century
BC, Siddhartha Gautama founded the religion of Buddhism, a profoundly influential work of
human thought still espoused by much of the world. In the same another religion called Jainism
was founded by Mahavira.
Around 500BC, when the Persian kings Cyrus and Darius, pushing their empire eastward,
conquered the ever-prized Indus valley. The Persians were in turn conquered by the Greeks under
Alexander the great, who came as far as the Beas River, where he defeated king Porus and an
army of 200 elephants in 326 BC. The tireless, charismatic conqueror wanted to extend his
empire even further eastward, but his own troops (undoubtedly exhausted) refused to continue.
Alexander returned home, leaving behind garrisons to keep the trade routes open.
During the sixth and fifth centuries BC commerce and cash became increasingly important in an
economy previously dominated by self-sufficient production and bartered exchange. Merchants
found Buddhist moral and ethical teachings an attractive alternative to the esoteric rituals of the
traditional Brahmin priesthood, which seemed to cater exclusively to Brahmin interests while
ignoring those of the new and emerging social classes. Furthermore, Buddhism was prominent in
communities of merchants, who found it well suited to their needs and who increasingly
established commercial links throughout the Mauryan Empire.
Merchants proved to be an efficient vector of the Buddhist faith, as they established diaspora
communities in the string of oasis towns-Merv, Bukhara, Samarkand, Kashgar, Khotan, Kuqa,
Turpan, Dunhuang-that served as lifeline of the silk roads through central Asia.
MAURYAN EMPIRE:
The establishment of Mauryan dynasty by Chandragupta Maurya in 321 BC marks a turning

point in the history of early India. The founder of the Mauryan dynasty, Chandragupta Maurya
(321-297BC) inherited a large army of the nandas, which used to conquer almost whole of north,
the north-west, and a large part of the peninsula- India. His son Bindusara (297-269BC)
succeeded him. Maurya promoted trade and cultural interaction with Greeks, but not much is
known about him. Ashoka (269-232BC) succeeded his father Bindusara. The mainstay of
economy in this period was agriculture. The Mauryan state founded new agricultural settlements
to bring virgin land under cultivation.
Trade and urban economy received great impetus under the Mauryas and influenced almost all
parts of the empire. The main centers of textile manufacturing were Varanasi, Mathura, Bengal,
Gandhara and Ujjain. Mining and metallurgy was another important economic activity. Trade
was conducted through land and river routes. Pataliputra was also connected through various
trade routes with all parts of the sub-continent. The main centre of trade in the north-west was
Taxila, which was further connected with central Asian markets. Tamralipti (Tamluk in west
Bengal) in the east and broach in the west were important seaports.
Craft activities were also a major source of revenue to the state. Artisans living in towns had to
pay taxes either in cash or kind or work free for the king. Traders and artisans were organized in
associations called srenis or guilds. The mauryas were responsible for introduction of iron on a
large scale in different parts of the sub continent. They maintained a monopoly over production

of iron, which was in great demand by the army, industry and agriculture. It was done through
the official called loha-adyaksha
POST MAURYAN DEVELOPMENTS
In around 187BC, the Mauryan Empire met its end. Here the political and cultural developments
in the Indian sub-continent from the end of the Mauryas to the rise of the Guptas, i.e., from BC
200 and 300 AD are discussed. These five hundred years not only include the rise of multiple
political powers in different parts of the sub-continent but also the introduction of new features in
art, architecture and religion.
The disintegration of the Mauryan Empire led to the rise of many regional kingdoms in different
parts of the country. At the same time, invasions by various groups of people based in central
Asia and western China were witnessed. These were Indo-Greeks, the Scythians or the Shakas,
the Parthians or the Pahlavas and the Kushanas. It was through such political processes that India
came in closer contact with the central Asian politics and culture.
ECONOMIC ACTIVITIES OF POST-MAURYAN ERA
Economic activities of post Mauryan eras are as follows:
Internal and External Trade Routes: The most important feature of the post-Mauryan period
was the growth of trade and commerce, both internally as well as externally. There were two
major internal land routes in ancient India. First, known as Uttarapatha, connected northern and
eastern parts of India with the north-western fringes, i.e., present day Pakistan and further
beyond, and the second, known as Dakshinapatha, connected the peninsular India with the
western and northern parts of India.
As regards external trade routes, after the discovery of monsoons by Hippatus a Greek navigator
in 45AD, more and more sea voyages were used for trading purposes. Important ports of India on
the western coast were (from north to south direction) Bharukachchha Sopara, Kalyana, Muziris,
etc. ships from these ports sailed to the Roman Empire through the red sea.
Trade with south-east Asia was conducted through the sea. Prominent ports on the eastern coast
of India were Tamralipti (west Bengal), Arikamedu (Tamil Nadu coast), etc. sea trade was also
conducted between Bharukachchha and the ports of south-east Asia.
Trade with West and central Asia: An important feature of the commercial activities in the post
Mauryan period was the thriving trade between India and the West, where the Roman Empire
was at its height. Initially this trade was carried-out through land, but owing to frequent
obstructions created by the Persians, who ruled the areas through which these trade routes
passed, the focus was shifted to sea routes. Now ships could move directly from Indian ports to
the ports on red sea and Persian Gulf.

Crafts and Industries: Crafts production started growing in this period with tremendous
impetus, as trade and commerce, both internal and foreign, was dependent to a great extent on
the craft activities. The text called Milindapanho mentions 75 occupations of which 60 were
associated with crafts. The level of specialization was very high and there were separate artisans
working in gold, silver, precious stones, etc. Ujjain was a prominent bead-making centre. Textile
industry was another prominent industry. Mathura and Vanga (East Bengal) were famous for
variety of cotton and silk textiles. The discovery of some dying vats at some sites in south India
indicates that dying was a thriving craft in the area during this period. The artisans in this period
touched new heights of prosperity and there are numerous inscriptions which refer to the
donations made by artisans to monasteries.
Guilds: the communities of merchants were organized in groups known as Shreni or guilds
under the head called, sreshthi. Another type of mercantile group was called sartha which
signified mobile or caravan trading corporation of interregional traders. The leader of such a
guild was called sarthavaha. Like merchants almost all craft vocations were also organized into
guilds, each under a headman called Jyestha. These included weavers, corn dealers, bamboo
workers, oil manufactures, potters, etc. the guilds were basically associations of merchants and
craftsmen following the same profession or dealing in the same commodity. They elected their
head and framed their own rules regarding prices and quality, etc. to regulate their business on
the basis of mutual goodwill. They also served as banks and received deposits from the public
bon a fixed rate of interest.
GUPTAS AND THEIR SUCCESSORS (AD 300-750)
After the decline of the Kushanas, north India witnessed the rise of the Gupta dynasty. The rules
of this dynasty were able to establish a vast empire that included almost the entire north India.
The Guptas had certain material advantages that helped them to carve an empire. They operated
from eastern U.P. and Bihar which was very fertile. They could also exploit the iron ores of
central India and Bihar to their advantage. Their period was marked by great progress in art,
architecture and literature. They ruled up to circa AD 550. After their collapse there emerged
various regional kingdoms in north India. South India too witnessed the rise of two important
kingdoms under the Chalukyas and the Pallavas respectively during AD 550-750.
The period from circa fourth century to eighth century was a period of great agricultural
expansion. The vast areas of land were brought under cultivation and improvements were made
in the existing methods of production to attain higher yield. One of the reasons for it was the
practice of granting lands to brahmanas and secular officers in different areas. It helped in
bringing virgin land under the plough. The spread of knowledge regarding the use of iron plough
share, manure, irrigation and preservation of cattle wealth in backward areas also contributed to
rural prosperity. It however brought relief to peasants who continued to suffer tremendous tax
burden.

The Gupta and post-Gupta period witnessed a comparative decline in countrys trade and
commerce. Till AD 550 India continued to have some trade with the eastern Roman empire to
which it exported silk, and spices. Around the sixth century the Roman learnt the art of rearing
silk worms. This adversely affected Indias foreign trade in this precious commodity. The
disruption of north-western route by the Hunas was another factor for this decline. India tried to
make up the loss by carrying on trade with south-east Asian countries but it did not help to revive
the economy substantially. The loss in trade lessened the inflow of gold and silver into the
country. It is confirmed by a general scarcity of gold coins after the Guptas.
The Guptas did issue a large number of gold coins called dinaras. But it was noticed that the gold
coins of each successive Gupta ruler, after Chandragupta2nd, contain less of gold and more of
alloy. After the Guptas very few coins of kings of different dynasties have been found. Thus in
the absence of coinage one can presume that self-sufficient economic system with limited trade
prevailed after the downfall of the Guptas.
INDIA BETWEEN AD 750-1200
The period between AD750 and AD 1200 is referred to as an early medieval period of Indian
history. It was earlier treated by historians as a dark phase. It was so because during this time
the whole country was divided into numerous regional states which were busy fighting with each
other. But recent studies have indicated that, though politically divided, India witnessed a growth
of new and rich cultural activities in the fields of art, literature and language. In fact, some best
specimens of temple architecture and Indian literature belong to this period. Thus, far from being
dark it may be treated as a bright and vibrant phase of India in history.
Economically, the first phase, i.e., AD 750-AD 1000, is believed to be one of decline. It is
evident from the absence of coins for exchange and the decayed condition of towns in northern
India. But in the second phase after AD 1000, the revival of trade activities occurred. Not only
there were new gold coins, there were also numerous references to trade goods and towns. There
seem to be two main reasons for it:
There was increase in agricultural activities on account of land grants in fresh areas. It led to
surplus production of goods for exchange.
The Arab traders had emerged on the coastal areas of India as important players in international
sea trade.
The Arabs had acquired a foothold in Sind in ad 712 and later, gradually, they set up their
settlements all along the sea from Arabia to China. These settlements served as important
channels for the sale and purchase of Indian goods, and thus helped in the growth of Indian
external trade. In south India, the Chola kings maintained close commercial contact with south
East Asia (Malaya, Indonesia, etc.) and China.

MEDIEVAL INDIA
The people in medieval India pursued diverse range of economic activities to earn their basic
livelihood. The sphere of their works varied from agricultural to artisanal production, trade and
commerce and associated commercial and financial services. These activities underwent various
changes throughout the course of this period. The state mobilized its resources through collection
of different types of taxes for its survival and expansion.
Agriculture formed the occupation of the bulk of the people. An increase in agricultural
production was sought through expansion of agriculture in newer areas as part of state policy.
The peasants produced a large variety of food crops, cash crops, fruits, vegetables and spices.
they practiced advanced agricultural techniques such as crop rotation, double cropping, three
crop harvesting, fruit grafting, etc. various types of artificial water lifting devices were also used
for this purpose. The state derived the largest part of its income from land revenue. The land
revenue administration was streamlined and elaborately developed as a result of some of the
pioneering efforts made in this field by rules like Alauddin Khilji, Sher Shah Suri and Akbar. A
powerful group of revenue intermediaries existed in between the state and the peasantry. They
enjoyed some hereditary or state granted rights (either as religious grants or grants in lieu of their
services) over appropriation of land revenue from the designated areas. These intermediaries
assisted the state in the process of land revenue collection. The medieval Indian peasantry was a
hard pressed lot.
Textile, mining and metallurgy, ship-building, construction works, arms and armour
manufacturing, were some of the prominent crafts practiced during this period. Craft production
was organized at various levels of village, towns and the state; where in state-owned artisanal
workshops (royal Karkhanas) produced commodities for the consumption of the ruling elite. In
the field of commerce India had trade links with contemporary central Asia, china, south-east
Asia and Europe, etc. the European trading companies, viz., the Portuguese, English, Dutch and
French, and their participation in the Indian, Intra-Asian, and Euro-Asian trade influenced Indian
commerce.
Expansion of trade and commerce along with new commercial practices like brokerage, hundi
(bills of exchange) and bima (insurance) helped commercial activities
BRITISH RAJ
The British raj (raj, meaning rule in Hindi) was the British rule in the Indian subcontinent
between 1858 and 1947. The term can also refer to the period of dominion. The region under
British control-commonly called India in contemporary usage- include areas directly
administered by the United Kingdom (contemporaneously, British India) as well as the
princely states rules by individual rules under the paramountcy of the British Crown. The region
was less commonly also called the Indian Empire.

The system of governance was instituted in 1858, when the rule of the British East India
Company was transferred to the crown in the person of queen Victoria (and who, in 1876, was
proclaimed Empress of India), and lasted until 1947, when the British Indian Empire was
partitioned into two sovereign dominion states, the Union of India (later the Republic of India)
and the Dominion of Pakistan (later the Islamic Republic of Pakistan, the eastern half of which,
still later, became the peoples Republic of Bangladesh).
Indian economy was the second largest economy in the world until the British came. During
British rule (1857 to 1947) Indian economy grew at Zero per cent. That India did not grow for 90
years (when industrial revolution was rewarding Europe and the U.S.) is a tragic outcome of
colonial rules lack of interest and incompetence. Credit goes to laissez faire capitalism
pursued by India after 1992 and American capital markets confidence and investments in
India for Indias emergence as the second fastest growing economy in the world today.
The British rule in India changed the political set-up, transformed the structure of the traditional
Indian society and developed fascination towards the western culture. Both nature and structure
of Indian economy underwent profound changes and it served the British economic interests at
the cost of India. While the economy of Britain flourished, India was left amidst poverty and was
found in such a state from which was impossible to recover. No doubt, development of transport
and communication, those changes ruined Indian economy to a greater degree. In other words, as
a colony India was dried of economically but she nourished the economy of the mother country,
i.e., England.
Economic effect of British raj in India can be further explained with the help of the following
heads:
COLONIAL POLICY OF THE BRITISH
India became a victim of British imperialism and this was largely to serve the colonial interest of
the British. The primary motive of the British from the very beginning remained the economic
exploitation of the country. The history of colonialism in India can be studied under three heads-
Era of mercantilism (1757-1813); Era of free trade (1813-1858); and Era of foreign investment
and international Competition for colonies (1858-1947) each stage was related to distinct forms
of exploitation and surplus appropriation.
The very idea of the policy of mercantilism was to conserve the resources of its own country and
fulfill the needs and requirement of the people through the import of the resources of the
colonies. The east India company first began its trade with India with a view to exchange their
goods with Indian goods and for this, they set-up trading centers at various places. Many other
European companies were also involved in such international trade probably with the same
intention of gradually acquiring the monopoly of trade with India. The various companies used to
buy India products at very cheap rates and sell them in world markets at as high a price as

possible. Another major objective of colonialism at this stage was to directly appropriate and
take over the revenues of the state through political control.
It was only through political control that the objective of monopolization of trade was going to
be achieved. This next stage of development is termed as the Era of free trade or the Era of
industrial capitalism. During this period, India became a subordinate trading partner of Britain,
both as a dependent colony to produce and supply the raw materials and foodstuffs to Britain,
and as a market for finished products (produced in Britain).
The period after 1858 saw foreign investment on a large scale in India and international
competition for controlling the colonies started. Britain now began to concentrate heavily on
India so that the process of exploitation was not hampered. Faced with constant challenge from
rival capitalist countries, Britain made vigorous efforts to consolidate its control over India. This
was due to the end of Britains industrial supremacy with the spread of industrialization in other
European countries. Colonization in the 19th century produced large accumulations of capital in
the capitalist countries of Europe including Britain.
DRAIN OF WEALTH
The British drained off the economic resources of India continuously in a systematic way during
their rule in India and poured the wealth of India into British. In the mercantilist concept, an
economic drain takes place if gold and silver flow out of the country as a consequence of an
adverse balance of trade. In the 17th and early 18th century, the East India company used to send
to India large amounts of treasure, i.e., gold and silver. This was to buy Indian goods for sale in
Europe. After the company established its hold over Bengal in 1757, there was a sharp decline in
the import of treasure into India despite continuance of exports of Indian goods to Europe. It
meant that the companys earning from taxes began to be invested in its business. Further, it
meant that the company was getting Indian goods for nothing. It can be called a political tribute.
Thus began the drain of wealth or the unilateral transfer of funds. The company used two terms
for Indian revenues- territorial revenue, i.e., the revenue surplus, and commercial revenue,
i.e., profit of business. After 1813, when the companys monopoly of trade was abolished the
business of the company declined sharply and territorial revenue became their mainstay.
LAND REVENUE POLICY AND LAND SETTLEMENTS
Since ancient times, the main sources of livelihood for the people were agriculture. Hence, land
tax had formed a principal source of revenue for all the emperors all over the world. In the 18 th
century, the main occupation of the Indian people was agriculture. During British rule, revenue
from land kept on increasing, and the reasons for this were many. Earlier the British had come to
trade with India. Gradually they wanted to conquer the vast territory of India for which they
needed a lot of money. They also needed money for trade, projects of the company as well as for

the cost of running the administration. The British carried out a number of land revenue
experiments which caused hardship to cultivators. They extracted taxes from the farmers to
finance their policies and war efforts. Direct and indirect means were carried out to bring about
this collection of revenue for the British. This affected the lives of the people who could not meet
their daily needs because they had to provide the land owners and the collectors their share in the
produce. Local administration failed to provide relief and natural justice to the rural poor.
Lord Cornwallis introduced the permanent Settlement in Bengal and Bihar in 1793. It made the
landlord or zamindar deposit a fixed amount of money in the state treasury. In return they were
recognized as hereditary owners of land. This made the zamindar the owner of the land. The
amount of revenue to be paid to the Company was fixed for a period of time which made the
British financially secured. Now they knew in advance as to how much revenue was coming in
from the state. The zamindar also knew how much revenue was to be paid. So to get surplus
revenue for themselves they asked the peasants to increase production. But, if the zamindar
failed to pay the fixed revenue on time his land was sold off to another zamindar in 1822, the
British introduced the Mahalwari settlement in the north western provinces, Punjab, the Ganga
valley and parts of Central India. Here the basis of assessment was the product of a mahal or
estate, which may be a village or a group of villages here all the proprietors of mahal were
jointly responsible for paying the sum of revenue assessed by the government. Unfortunately it
brought no benefit to the peasants as the British demands were very high.
The Ryotwari settlement was introduced in the beginning of the 19 th century in many parts of
Bombay and madras presidencies. Here the land revenue was imposed directly on the ryots, the
individual cultivators, who actually worked on the land. The peasant was recognized as the
owner of the land as long as they were able to pay the revenue but the exploitation continued
with the high revenue demands.
DE-INDUSTRIALIZATION
The process of distribution of traditional Indian craft industries and decline in national income
generated by the industry has been referred to as the de-industrialization of the Indian economy.
Early European trade with India was heavily balanced in Indias favours. The 17 th century saw
Indian cotton textiles rapidly displacing paper and other spices to become the most important
Asian import into the west. The market expansion of Indian cotton textile exports substantially
accelerated the growth of the textile industry which provided employment to a sizeable section of
the population. This unprecedented growth of Indian textile imports into Europe was
accompanied by a steady inflow of bullion into India from the buyer nations and thus, India
continued to enjoy a positive balance of trade.
The pre-1813 period of British exploitation of India can be termed as exploitation by merchant
capital in the context of mercantilism. the East India companys objective was to buy the
maximum quantities of Indian manufactured goods at the cheapest possible price so that
substantial profit can be made by selling these goods in Britain and other foreign countries. The
reckless and anarchic attempts to increase their purchases while forcing down the price adversely
affected the traditional Indian export industry, especially the cotton textile manufacture. Apart
from this exploitation, British textile manufacturing at home had begun tariffs and bans on the
import of the Indian textiles. Britain had prohibited the import of Indian silks and printed
calicoes into Britain by imposing heavy duty on its consumption in Britain.
Further, the East India Company which had a monopoly on the trade with India itself became the
focus of attack from traders in Britain who had been excluded from having a share in the Indian
trade. Also, the nascent British manufacturers perceived the manufactures imported by their own
industries.
Further, there was high import duty and other restrictions on the import of Indian goods into
Britain. The income of weavers and spinners were drastically reduced, there by restricting any
possibility of capital accumulation and technological innovations in the traditional industries
sector.
Another very important cause de-industrialization was that a major part of national income was
spent non-productive areas like arms made in Britain. The British purchased all their military and
other government stores in Britain.
RURALISATION OF INDIAN ECONOMY:
In India the decline of traditional industries were not compensated by the growth modern
machine industries as was the case in western Europe. The only choice open for handicraft-men
and artisans was to crowd into agriculture. The gradual destruction of rural crafts broke up the
union between agriculture and domestic industry in the countryside and this led to the destruction
of large self-sufficient village economies. On the one hand, hundreds of peasants who had
supplemented their income by part-time spinning and weaving now had to rely overwhelmingly
on cultivation.
The destruction of tradition Indian industries was one of the earliest consequences of colonialism
to be noticed in this country. The beginning of de-industrialization of India lay in the 18 th
century, when the products of Indian cottage industries were still valuable items of commerce. In
the early stage of colonialism-marked as mercantile capitalism-the source of profit of the East
India Company was the difference between the cost prices in India and the sale prices in England
of Indian cotton and silk textiles.
After the elimination of other European companies in India and the rise of the East India
Company as a military and political power, the British established a hegemony which allowed
them to become monopolists in the market and de industrialize India. The British began to use
this monopoly to influence the market to their own advantage. in last thee decades of the
eighteenth century, the English reduced the prices paid to the native artisans in the country to

reap high profits from sales in the European market. This practice cut at the very root of our
handicraft industries by reducing the artisan to a low level of income. It also destroyed the
possibility of accumulation of resources to invest in the industry and to improve its technology.
Till1813, the Indian industry, especially the textile Industry, was adversely affected in two ways.
Firstly, the company reduced weavers to the status of indentured labourers, by them to take an
advance from the company.
Even after the rise of modern industry in the country post world war I, the process of
deindustrialization of India continued. It meant a fall in the percentage of workers in industry and
an increase in the percentage of the agricultural working force. According to Colin dark, a
reputed economist, in the years 1881-1911, the proportion of the working force engaged in
manufacturing, mining and construction fell by half, from 35 percent to 17per cent. According to
census reports, between 1901 and 1941 alone, the percentage of population dependent on
agriculture increased from 63.7 percent to 70 percent. It shows that de-industrialisation increased
the dependence of people on agriculture.
RAILWAYS:
Railways were one of the major efforts on the part of the British towards infrastructural
development in India during the colonial rule. However, rather than proving to be an advantage,
it led to de-industrialization I n the country and drained India of its resources. Britain developed
Railways, ports and irrigation facilities since it suited the economic interests of Britain and
thwarted the growth of modern industry within India. The railways enabled British manufactures
to reach and uproot the traditional industries in the remotest villages of the country. According
to American writer, D.H. Buchanan, the armour of the isolated self-sufficient village was
pierced by the steel, and its life blood ebbed away.
Railways and transport canals in India were initially constructed by private enterprise, as in
Britain. However, the risks of such enterprises in Britain were borne by the British investors
whereas, in India, the Indian cultivators, who were also the main tax-payers, bore the risks
without enjoying the gains. The British entrepreneurs who constructed the railways and canals
were offered government-guaranteed fixed returns on investments so as to attract them to India
from profitable ventures in Europe.
The railways (and the roads and canals) were instrumental in speeding up commercialization in
India under British rule. The advent of the railways in the mid-19 th century encouraged the export
of commercial crops. Before the introduction of railways, all goods from India went over land in
carts pulled by horses or bullocks. This was a very slow way of reaching the ports from which
ships set sail. It took four months or more for a ship to sail from India to Europe. The high speed
of the train and its bigger carriage capacity solved the problem of carrying raw materials to the
ports quickly. Railways also enabled imported English manufactured goods to reach the interior
of India.
As their local markets diminished, small farmers were forced to put their goods into the risky
export trade to finance their debts or lose their land. Productive resources in a large measure
were lost to moneylenders, partly because small farmers got no protection from the government.
Food exports-facilitated by the railways-to distant lands, formed a different kind of drain
leading to famines to which authorities responded rater slowly. Grain exports continued even
when shortages occurred, prices rose, and starvation deaths took place. Thus, the introduction of
railways and the commercialization took a heavy toll of human life and livelihood.
GROWTH OF LANDLESS LABOUR:
Landless labour was a creation of the colonial period. The number of landless labourers in 1901
has been estimated at 52.4 million (37.8 per cent of agriculturists). Many factors were
responsible for the high number of landless labourers. The British policy of extracting the largest
possible land revenue led to such devastation that even Cornwallis complained that one-third of
Bengal had been transferred into a jungle inhabited only by wild beasts. In both the
permanently and temporarily settled Zamindari areas, the condition of the peasants failed to pay
land revenue, the government put up his land for sale to collect the arrears of revenue.
Sometimes the peasant himself sold part of his land to meet the government demand. In either
case, peasants lost their land and turned into landless labourers. Moneylenders also played an
important role in the growth of landless peasants during the colonial rule. Often the peasant
mortgaged his land to a moneylender or to a rich peasant neighbor when he would find himself
unable to pay the revenue. The moneylender charged high rates of interest and, through cunning
and deceitful measures, such as false accounting, forged signatures, and making the debtor sign
for larger amounts than he had borrowed, got the peasant deeper and deeper into debt till he
pated with his land. The new revenue policy and the new legal system also contributed to
landlessness.
With the introduction of transferability of land, the British revenue system enable the
moneylender or rich peasant to take possession of the land. The wealthy moneylenders used the
power of the purse to turn the expensive process of litigation in their own favour. Moreover, the
literate and shrewd moneylender could easily take advantage of the ignorance and illiteracy of
the peasant to twist the complicated process of law to get favourable judicial decisions. The
transfer of land from cultivators to moneylenders intensified during periods of scarcity and
famines. In the absence of any savings, the peasant fell back upon the moneylender when there
was a crop failure. Peasant did so not only to pay the land revenue but also to feed himself and
his family. The growing commercialization of agriculture also contributed to growth of landless
labourers. Many peasants lost their land and became landless labourers. the loss of land and
overcrowding of land caused by de industrialization and lack of modern industry compelled the
landless peasants and ruined artisans and handicraftsmen to become either tenants of the
moneylenders and zamindars by paying rack-rent or agricultural labourers at starvation wages.
SWADESHI MOVEMENT:

The Swadeshi movement, part of the Indian independence movement and the developing Indian
nationalism, was an economic strategy aimed at removing the British Empire from power and
improving economic conditions in India following the principles of swadeshi, which had some
success. Strategies of the swadeshi movement involved boycotting British products and the
revival of domestic products and production processes. It was strongest in Bengal and was also
called Vandemataram movement.
The swadeshi movement started with the partition of Bengal by the viceroy of India, Lord
Curzon, 1905 and continued up to 1911. The concept of swadeshi, as per Mahatma Gandhi, was
to attain self- sufficiency which included employment of unemployed people by encouraging
village industries and towards building a non violent society. Thus, the main policies of the
swadeshi movement included boycotting all types of British products and the restoration nof all
domestic products. The chief forerunners of swadeshi movement were Bal Gangadhar tilak,
lala lajpat rai, bipin Chandra pal, aurobindo ghose and veer savarkar.
The post- Independence swadeshi movement has developed forth differently than its pre-
independence counterpart. While the pre-independence movement was essentially a response to
colonial policies, the post independence swadeshi movement sprung forth as an answer to
increasingly oppressive imperialistic policies in the post-second world-war climate. For a nation
emerging from two centuries of colonial oppression, india was required to compete with the
industrialized economies of the west. While rapid industrialization under the umbrella of five
year plans were aimed at enabling a self- sufficient India, the need to balance it with a
predominantly agrarian set-up was the need of the hour. This need to preserve the old fabric of an
agrarian country while simultaneously modernizing, necessitated a resurgence of a slightly recast
swadeshi movement.
NATURE OF SWADESHI MOVEMENT:
The following points describe the nature of swadeshi movement:
Last Resort: the Bengalis adopted the boycott movement as the last resort after they had
exhausted the armoury of constitutional agitation known to them, namely vocal protests, appeals,
petitions and conferences to coerce the British to concede the unanimous national demand.
Economic objective: the original conception of boycott was mainly an economic it had two
distinct, but allied purposes in view: i) British pecuniary loss: the first was to bring pressure
upon the British public by the monetary loss they would suffer by the boycott of Britrish goods,
particularly the Manchester cotton goods for which Bengal provided the richest market in India.
ii) revival of native industry: it was regarde as essential for the revival of indigenous industry
which being at its infant stage could never grow in the face of free competition with foreign
countries which had highly developed industry.

Leads to Idea of non-cooperation: the economic boycott receded into background with the
passage of time and it developed into an idea of non-cooperation wityh the British in every field
and the object aimed at was a political regeneration of the country with the distant goal of
absolute freedom looming large before the eyes of the more advanced section.
Promotion of Indian industry: swadeshi completely outgrew the original conception o

promoting Indian industry. It assumed a new from based upon the literal connotation of the word
swadeshi, namely attachment to everything Indian.
TRENDS FOLLOWED IN SWADESHI MOVEMENT:
The swadeshi movement had its genesis in the anti-partition movement which was stated to
oppose the British decision to partition Bengal. The governments decision to partition Bengal
had been made public in December 1903.
The official reason given for the decision was that Bengal with a population of 78 million (about
a quarter of the population of British India) had become too big to be administered. This was
true to some extent, but the real motive behind the partition plan was the British desire to weaken
Bengal, the nerve centre of Indian nationalism.
This it sought to achieve by putting the Bengalis under two administrations by dividing them:
On the basis of language (thus reducing the Bengalis to minority in Bengal itself as the new
proposal. Bengal proper was to have 17 million Bengalis and 37 million Hindi and Oriya
speakers), and the basis of religion, as the western half was to be a Hindu majority area (42
million out of a total 54 million) and the eastern half was to be a muslim majority area (18
million out of a total of 31 million).
Trying to woo the Muslims, Curzon, the Viceroy at that time, argued that Dacca could become
the capital of the new Muslim viceroys and kings. Thus, it was clear that the government was
upto its old policy of propping up muslim communalists to counter the congress and the national
movement.
TRENDS IN THE PHASES OF SWADESHI MOVEMENT ARE AS FOLLOWS:
Genesis- December, 1903: the swadeshi movement had its genesis in the anti-partition
movement which was stated to oppose the British decision to partition Bengal. The governments
decision to partition Bengal had been made public in December 1903.
The official reason given for the decision was that Bengal with a population off 78 million (about
a quarter of the population of British India) had become too big to be administered. This was true
to some extent, but the real motive behind the partition plan was the British desire to weaken

Bengal, the nerve centre of Indian nationalism. This it sought to achieve by putting the Bengalis
under two administrations by dividing them:
On the basis of language, and

On the basis of religion.
Trying to woo the Muslims, Curzon, the viceroy at that time, argued that Dacca could become
the capital of the new muslim viceroys and kings. Thus, it was clear that the government was yup
to its old policy of propping up muslim communalists to counter the congress and the national
movement.
Moderates Agitation (1903-05): during the period, the leadership was provided by men like
surendranath benerjea, k.k. mitra and prithwishchandra ray. The methods adopted were petitions
to the government, public meetings, memoranda, and propaganda through pamphlets and
newspapers such as hitabadi, sanjibani and bengalee.
Their objective was to exert sufficient pressure on the government through an educated public
opinion in India and England to prevent the unjust partition of Bengal from being implemented.
Ignoring a loud public opinion against the partition proposal, the government announced
partition of Bengal in july 19905. Within days, protest meetings were held in small towns all
over Bengal.
It was in these meeting that the pledge to boycott foreign goods was first taken. On august 7,
1905, with the passage of boycott resolution in a massive meeting held in the Calcutta town hall,
the
Formal proclamation of swadeshi movement was made. After this, the leaders dispersed to other
parts of Bengal to propagate the message of boycott of Manchester cloth and Liverpool salt.
October 16, 1905, the day the partition formally came into force, was observed as a day of
mourning throughout Bengal. People fasted, bathed in the ganga and walked barefoot in
processions singing bande mataram ( which almost spontaneously became the theme song of the
movement).
The Indian national congress, meeting in 1905 under the presidentship of gokhale, resolved to:
Condemn the partition of Bengal and the reactionary policies of Curzon, and
Support the anti-partition and swadeshi movement of Bengal.
Militant movement 1906 onwards: A big step forward was taken at the congress session held
at Calcutta (1906) under president-ship of Dadabhai Naoroji, where it was declared that the goal
of the Indian national Congress was self-government or swaraj like the united kingdom or the
colonies.

The moderate- extremist dispute over the pace of the movement and techniques of struggle
reached a deadlock at the surat session of the Indian national congress (1907) where the party
split with serious consequences for the swadeshi movement.
After 1905, the extremists acquired a dominant influence over the swadeshi movement in
Bengal. There were three reasons for this:
The moderate- led movement had failed to yield results.

The divisive tactics of the governments of both the Bengals had embittered the
nationalists.
The government had resorted to suppressive measures, which included atrocities on students-
many of whom were given corporal punishment; ban on public singing of bande mataram;
restriction on public meetings; prosecution and long imprisonment of swadeshi workers;
clashes between the police and the people in many towns; arrests and deportation of leaders;
and suppression of freedom of the press.
The militant nationalist put forward several fresh ideas at the theoretical, propaganda and
programme levels. Among the several forms struggle thrown up by the movement were:
Boycott of foreign good.

Public meeting and procession.
Formation of volunteers of samitis.
Imaginative use of traditional popular festivals and meals.
Emphasis given to self-reliance or atmashakti.
Emphasis on swadeshi or indigenous enterprises.
Mass participation: students came out in large numbers to propagate and practice swadeshi, and
to take a lead in organizing picketing of shops selling foreign goods. Women, who were
traditionally home-centred, especially those of the urban middle classes, took active part in
processions and picketing. From now onwards, they were to play a significant role in the national
movement.
But the movement was not able to garner support of the muslims, especially the muslim
peasantry, because of a conscious government policy of divide and rule helped by overlap of
class and community at places. To further government interests, the all India muslim league was
propped up in 1907 as an anti-congress front and elements like nawab salimullah of dacca were
encouraged.
National movement: movements in support of bengals unity and the swadeshi and boycott
agitation were organised in many parts of the country. Tilak, who played a leading role in the
spread of the movement outside Bengal, saw in this the ushering in of a new chapter in the
history of the national movement. Tilak realized that here was a challenge and an opportunity to

organize popular mass struggle against the british rule to unite the country in a bond of common
sympathy.
Annulment of partition: it was decided to annul the partition of Bengal in 1911 mainly to curb
the menace of revolutionary terrorism. The annulment came as a rude shock to the muslim
politica; elite. It was decided to shift the capital to delhi as a sop to the muslims, as it was
associated with muslim glory, but the muslims were not pleased. Bihar and Orissa were taken out
of Bengal and assam was made a separate province.
ECONOMIC IMPACT OF SWADESHI MOVEMENT
In the economic sense, swadeshi would represent both a positive and a negative element. These
have been discussed as under:
Increase in demand of indigenous goods: the positive element of economic swadeshi was the
re-generation of indigenous goods. The boycott of foreign goods led to the increase in demand of
indigenous goods. The boycott of foreign goods led to the increase in demand of indigenous
goods especially clothes which felt short of supply. The mill- owners of Bombay and Ahmadabad
came to its recue.
Opportunity for domestic cotton industry: the boycott movement in Bengal supplied a
momentum and driving force to the cotton mills in India and the opportunity thus presented was
exploited by the mill owners. It was complained at that time that the Bombay mill owners made a
huge profit at the expense of what they regarded as Bengali sentimentalism, for buying
indigenous cloth at any sacrifice and there may be some truth in it but this is not sure. Bengal had
to supplement the supply from Bombay mills by the coarse production of handlooms.
Boycott and burning of foreign goods: Manchester cloth was the chief target of attack, the
movement was extended to other British manufactures also, such as salt and sugar as well as
luxury goods in general. The ideas of swadeshi and economic boycott was kept alive and brought
home to every door by articles in newspapers, processions, popular songs, enrolment of
volunteers to keep vigilant watch and by occasion bonfires of foreign cloth, salt and sugar. The
old apparels of foreign made belonging to sundry people were placed in a heap and then it was
set on fire. The blazing flames were looked upon as a special mode of humouring noted public
leaders and the bonfires greeting them were regarded as of great value as a means of infusing
enthusiasm for swadeshi.
Other bonfires: fines were inflicted on anyone found using foreign sugar. Foreign cigarettes
were bought and burnt in the streets, Brahmins refused to assist any religious ceremonies in
house where European salt and sugar were used and marwaris were warned of importing foreign
articles. All these bonfires however affected the economy of the people. To burn manchester
made goods brought at a high price literally affects the people but swept by national enthusiasm,
people continued to eschew and burn foreign goods.

It is difficult to form an accurate estimate of the effect of the boycott movement on the import of
foreign goods in Bengal, as no exact statistics are available. It appears, however, from the official
and confidential police reports that for the first two or three years, there was a serious decline in
the import of British goods, particularly cloth. Passive resistance could not go for long and its
ultimate result could never be in doubt. This was the genesis of the sudden emergence of a
network of secret revolutionary organizations which were determined to meet the government on
equal terms, by collectively arms and opposing terrorism by terrorism.
REASONS BEHIND THE BREAK- UP SWADESHI MOVEMENT
Some of the major reasons behind the break-up of swadeshi movement are given as follows:
Severe British subjection: there was severe government repression. The government used
corporal punishment for the people participating in the movement.
In Effective organization: the movement failed to create an effective organization or a party

structure. It threw up an entire gamut of techniques that came to be associated with gandhian
politics- non cooperation, passive resistance, filling of British jails, social reform and
constructive work- but failed to give these techniques a disciplined focus.
Lack of leadership: the movement was rendered leaderless with most the leaders either arrested
or deported by 1908 and with aurbindo Ghosh and Bipin Chandra pal retiring from active
politics.
Internal Arguments among leaders: internal squabbles among leaders, magnified by the surat
split (1907), did much harm to te swadeshi movement.
Lack of direction to the movement: the movement aroused the people but did not know how to
tap the newly released energy or how to find new forms to give expression to popular
resentment.
Limited to upper-middle class: the movement largely remained confined to the upper and
middle classes and zamindars, and failed to reach masses-especially the peasantry.
Other reasons: the other reasons include non-cooperation and passive resistance remained mere
ideas. Also, it is difficult to sustain a mass based movement at a high pitch for too long.
POST-INDEPENDENCE SCENARIO
INTRODUCTION
Indias economic journey from an impoverished country to an emerging global economy is an

inspiring example for many developing nations. In order to understand Indias economic voyage,
it is essential to shed some light on Indias political and economic history. After 200 years of
British rule, India became an independent sovereign nation in 1947.

During the early 1990s, Indias economy began to worsen and was faced with growing inflation,
unemployment and poverty and historically low foreign exchange reserve. The government ran
out of options and finally, the government had to change its closed-door economic polities in
1991.
Prime minister narasimha rao took steps towards liberalization and privatization to reform Indias
economy. Manmohan singh, who was the finance minister at that time went forward and
introduced several economic reforms. He lowered tariff levels, reformed exchange rate policy,
liberalized industrial licensing policy and also relaxed Indias foreign direct investment (FDI)
policy. These reforms opened the doors for multinational corporations to invest in India. India
received positive responses from international investors.
The rise of India as an emerging economic power is an inspiring story for all Indians. A compiled
list of landmarks that shaped the Indian Economy after Independence is given below:
Licence Raj: Jawaharlal Nehru was the architect of the system of licence Raj or the permit Raj. It
refers to the elaborate licenses, regulations and accompanying red tape that were required to set-
up and run businesses in India between 1947 and 1990.
Planning in India: Planning without an objective is like driving without any destination. There
are generally two sets of objectives for planning, namely the short-term objectives and the long-
term objectives. While the short-term objectives vary from plan to plan, Depending on the
immediate problems faced by the economy, the process of planning is inspired by certain long-
term objectives.
The planning commission was set up in march 1950. The main objective of the government to
promote a rapid rise in the standard of living of the people by efficient exploitation of the
resources of the country, increasing production and offering opportunities to all for employment
in the service of the community.
Panchayati Raj and economic empowerment: this system of panchayati raj was adopted by
state governments during 1958. The amendment act of 1992 contains provision for devolution of
powers and responsibilities to the panchayats both for the preparation of economic development
plans, rural empowerment and social justice. One can say that the system of panchayati raj gave
a tool for economic empowerment for people living in rural India wherein the person at the
lowest level of society can feel associated with the policy formulation as well as get a share in
the economic decisions.
Bank nationalization: in the 1960s a debate had ensued about the nationalization of the banking
industry. Indira Gandhi, then prime minister of India, expressed the intention of the government
of India in the annual conference of the all India congress meeting in a paper entitled stray
thoughts on bank Nationalization. A second dose of nationalization of 6 more commercial banks

followed in 1980, there by allowing the government of India a control of around 91% of the
banking business of India.
Abolish poverty/Garibi Hatao: Abolish poverty or the Garibi hatao slogan carried out by Indira
Gandhis 1971 election bid was designed to give Gandhi an independent national support-based
on rural and urban poor. The congress party in new Delhi funded and developed the programmes
through Garibi Hatao agenda and was carried out locally across the country. 1980, Indira Gandhi
campaigns on platform of Garibi Hatao (end 33333poverty), to be attained via 20 point
programme
Reforms in India (post 91 reforms): though economic liberalisation in India can be traced back
to the late 1970s, economic reforms began in earnest only in july 1991.the collapse of the soviet
union, which was Indias major trading partner, and the gulf war, which caused a spike in oil
prices, resulted in a major balance-of-payments crisis for India, which found itself facing the
prospect of defaulting on its loans.
Indian stock market: the economic liberalization introduced by manmohan singh in 1991, then
finance minister in the government of P.V. Narsimha rao, proved to be the stepping-stone for
Indian capital markets. The equity market capitalization of the companies listed on the BSE was
1.51 trillion as of may 2014, making its position in the top 10 stock exchanges of the world. The
BSE has the largest number of listed companies in the world
MGNREGA: with an aim of improving the purchasing power of the rural people, primarily semi
or un-skilled work to people living in rural India, the Mahatma Gandhi national rural
Employment Guarantee Act (MGNREGA) was launched by the government of India. It was
enacted by legislation on august 25, 2005.the law was initially called the national rural
employment guarantee act (NREGA) but was renamed on 2 October 2009.
Foreign direct investment in India: as the third-largest economy in the world in PPP terms,
India is a preferred destination for FDI. During the year 2011, FDI inflow into India stood at U.S.
36.5 billion, 51.1 per cent higher than 2010 figure of U.S. 24.15 billion. Total FDI equity inflows
in India (including amount remitted through RBI,s-NRI Schemes) during April 2000-May2014
stood at U.S. 222,890 million. India has strengths in telecommunication, information technology
and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and
Jewellery. Despite a surge in foreign investments, rigid FDI Policies were a significant
hindrance.
LICENCE-PERMIT RAJ
License or permit raj is a term used to describe the regulation of the private sector in India
between 1947 and the early 1990s. in India at that time, one needed the approval of numerous
agencies in order to set-up a business legally. Manufacturing in particular was heavily regulated.
The License Raj was the result of a mixed economy that used a government planning

commission established after Indias Independence. The Licence Raj was Largely successful in
the 11950s and after, but eventually led to low rates of growth and investment.
Jawaharlal Nehru was the architect of the system of licence Raj or the permit Raj it refers to the
elaborate licenses, regulations and accompanying red tape that were required to set-up and run
businesses in India between 1947and 1990.
Effects of License-permit Raj
The License Raj created or contributed to several widespread and long-lasting effects. It was
responsible for:
1) Contributing to an overall domestic malaise that saw India miss out on the
opportunities that many south east Asian countries used to build manufacturing bases.
2) Establishing an irresponsible, self-perpetuating bureaucracy that still exists
throughout much of the country.
3) Giving birth to a generation of uncompetitive, poorly performing businesses that may
not survive Indias new economic expansion.
4) Crippling domestic productivity that has failed to keep pace with the countrys
growing population.
5) Engendering an anti-regulatory, anti-government mindset that still jeopardizes
government initiatives and needed improvements in many sectors.
LPG Era
The economy of India had undergone significant policy shifts in the beginning of the 1990s. this
new model of economic reforms is commonly known as the LPG or liberalization, privatization
and globalization model. The primary objective of this model was to make the economy of the
seventh largest country in the world the fastest developing economy in the globe with
capabilities that help it match up with the biggest economies of the world.
Liberalization
Liberalization is a very broad term that usually refers to fewer government regulations and
restrictions in the economy in exchange for greater participation of private entities.
Liberalization refers to the relaxation of the previous government restriction usually in area of
social and economic policies. When government liberalized trade, it means it has removed the
tariff, subsidies and other restriction on the flow of goods and services between the countries.
According to M. Dhanuja, liberalization is related to that state of economic conditions in which

rules, regulations and controls are eliminated to promote competition.
Impact of Liberalization in India

The main aim of liberalization was to dismantle the excessive regulatory framework which acted
as a barrier for industries growth.
Positive Impact of Liberalization in India: the positive impact of liberalization in India can be
seen in following areas:
i) Improvement in Healthcare: Liberalization has also positively affected the

overall healthcare situation in the country. More and more medical innovations
are coming which are improving the health situation in India.
ii) Growth of Agriculture: A major portion of the poverty level in India is from the
rural areas whose staple form of income is agriculture and farming.
iii) Liberalization and Employment: Liberalization has also put a favourable effect
on the employment scenario of the country. Over the years, due to the
liberalization policies, India has become a consumer oriented market where the
changes are brought by the demand and supply forces.
iv) Liberalization and Economic Growth: it was in the 19900s that the first
economic liberalization policies were initiated by the then finance minister dr.
Manmohan singh to encourage the wake of globalization in India. Since then, the
economic condition of India has significantly increased.
Negative Impact of Liberalization in India: the negative impact of liberalization in India is as

follows:
i) Reduced Profits: Liberalization is often opposed by domestic industries that

would have their profits and market share reduced by lower prices for imported
goods.
ii) Exploitation of Workers: Socialists frequently oppose liberalization on the
ground that it allows maximum exploitation of workers by capital.
iii) Reduces Economic freedom: liberalization is opposed by many anti-
globalization groups, based on their assertion that free trade agreements generally
do not increase the economic freedom of the poor or the working class, and
frequently make them poorer.
iv) Short-term adjustments: Even though an economy is likely to benefit from the
process of economic liberalization over time, certain short-term adjustments may
not be so positive.
Privatization
Privatization is part of the process of rethinking the welfare state. Society is searching for new
ways of delivering services because of our collective sense of efficiency. The entrepreneur, not
the bureaucrat, is the hero of society. While we cannot be sure how it will all turn out,
privatization will be part of the emerging post-welfare state. Privatization where applied has
achieved some measures of success in the local government.

According to stuart M.Butler, privatization is the transfer of government assets or functions to

the private sector.
IMPACT OF PRIVATIZATION IN INDIA
Privatization in India is still at a minimalist level. Privatization by way of sale of public sector
enterprises is almost negligible while divestment is also existent by way of selling of a portion of
shares of the 31 public sector enterprises. Few examples of privatization in India are Lagan jute
Machinery Company Limited, Modern Food Industries Limited, BALCO, Hotel Corporation of
India Limited, Hindustan zinc Limited, Paradeep phosphates Limited, BSNL, etc
Positive Impact of Privatization in India: the positive impact of privatization in India can be
seen in following areas:
i) Provide the Necessary Impetus to the underperforming PSUs: State-owned

enterprises usually are outdone by the private enterprises competitively.
ii) Provides Momentum in the Competitive Sectors: Privatization brings about
radical structural changes providing momentum in the competitive sectors.
iii) Fosters Sustainable Competitive advantage: privatization leads to adoption of
the global best practices along with management and motivation of the best
human talent to foster sustainable competitive advantage and improvised
management of resources.
iv) Improves Financial Health: privatization has a positive impact on the financial
health of the sector which was previously state dominated by way of reducing the
deficits and debts.
v) Lowers Net Transfer to the state-owned Enterprises: the net transfer to the
state-owned enterprises is lowered through privatization.
vi) Escalates the performance Benchmarks of the Industry: Helps in escalating
the performance benchmarks of the industry in general.
vii) Beneficial for the Growth of Employees: it can initially have an undesirable
impact on the employees but gradually in the long-term, shall prove beneficial for
the growth and prosperity of the employees.
viii) Better Services to the Customers: privatized enterprises provide better and
prompt services to the customers and help in improving the overall infrastructure
of the country.
Negative Impact of Privatization in India: there are several disadvantages or the

problems faced by privatization which are as follows:
i) Ignores Social Objectives: private sector focuses more on profit maximization

and less on social objectives unlike public sector that initiates socially viable
adjustments in case of emergencies and criticalities.

ii) Lack of Transparency: there is lack of transparency in private sector and

stakeholders do not get the complete information about the functionality of the
enterprise.
iii) Support to Unfair Practices: Privatization has provided the unnecessary support to
the corruption and illegitimate ways of accomplishments of licenses and business
deals amongst the government and private bidders.
iv) Loses the Mission: privatization loses the mission with which the enterprise was
established and profit maximization agenda encourages malpractices like
production of lower quality products, elevating the hidden indirect costs, price
escalation, etc.
Globalization
Globalization is a powerful real aspect of the new world system, and it represents one of the most
influential forces in determining the future course of the planet. It has manifold dimensions-
economic, political, security, environmental, health, social, cultural, and others.

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1.

6 -BUSINESS & INDUSTRY; MODULE 3

MODULE 3: EVOLUTION OF BUSINESS & INDUSTRY IN INDIA

FEATURES OF INDIAN SOCIETY:

1 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

VALUES IN INDIAN SOCIETY:

Indian society is the hallmark of various epical traits and values.

Dharma: It is a comprehensive doctrine of the duties and rights of an individual in an ideal

2 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

3 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

STRUCTURE OF INDIAN SOCIETY:

All members are related to each other by blood

4 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

CLASS STRUCTURE OF INDIAN SOCIETY:

SOCIAL CLASS CATEGORIES:

7 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

CASTE STRUCTURE OF INDIAN SOCIETY:

Caste is a form of social stratification characterized by endogamy, hereditary transmission of a

CASTE SYSTEM IN INDIA:

8 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

HISTORY OF ECONOMIC ACTIVITY IN INDIA

Glimpse of Economic Activity in Ancient Times

GLIMPSE OF ECONOMIC ACTIVITY IN ANCIENT TIMES:

9 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

10 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

BUDDHISM AND JAINISM

The establishment of Mauryan dynasty by Chandragupta Maurya in 321 BC marks a turning

12 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

POST MAURYAN DEVELOPMENTS

ECONOMIC ACTIVITIES OF POST-MAURYAN ERA

Economic activities of post Mauryan eras are as follows:

13 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

GUPTAS AND THEIR SUCCESSORS (AD 300-750)

14 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

INDIA BETWEEN AD 750-1200

15 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

16 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

COLONIAL POLICY OF THE BRITISH

17 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

LAND REVENUE POLICY AND LAND SETTLEMENTS

18 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

RURALISATION OF INDIAN ECONOMY:

20 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

GROWTH OF LANDLESS LABOUR:

22 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

NATURE OF SWADESHI MOVEMENT:

The following points describe the nature of swadeshi movement:

23 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

Promotion of Indian industry: swadeshi completely outgrew the original conception o

TRENDS FOLLOWED IN SWADESHI MOVEMENT:

TRENDS IN THE PHASES OF SWADESHI MOVEMENT ARE AS FOLLOWS:

24 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

On the basis of language, and

25 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

The moderate- led movement had failed to yield results.

Boycott of foreign good.

26 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

ECONOMIC IMPACT OF SWADESHI MOVEMENT

27 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

REASONS BEHIND THE BREAK- UP SWADESHI MOVEMENT

In Effective organization: the movement failed to create an effective organization or a party

Indias economic journey from an impoverished country to an emerging global economy is an

28 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM

29 DR.GURU ARADHYA, SR.ASST.PROF, MB A DEPT, REVA ISM