State of Indian Economy at Independence

The six defining characteristics of the Indian economy on the eve of independence.

Notes

State of Indian Economy at Independence

Class 12 Indian Economic Development — The six adjectives that describe what India inherited after 200 years of British rule

The Six Adjectives — What India Inherited

After nearly 200 years of British rule, the Indian economy on 15th August 1947 could be described by six powerful words. Click each card to explore what it means.

India's Economy

August 1947

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Systematic Exploitation — Summary

Click to reveal each form of British exploitation. Counter: 0 of 6

Key Takeaways

Key Takeaways

  • On the eve of independence, the Indian economy could be described by six adjectives: colonial, semi-feudal, stagnant, backward, depleted, and amputated. ⭐
  • The economy was colonial — 200 years of exploitation had drained India's wealth to feed British industry.
  • It was semi-feudal — a combination of exploitative zamindari relations (feudal) and emerging capitalist class relations from modern industries.
  • Stagnation is proven by the numbers: aggregate real output grew at <2% and per capita output at only 0.5% during the first half of the 20th century. ⭐
  • Partition left the economy amputated — refugees needed rehabilitation, and jute/cotton mills lost their raw material sources to Pakistan.