"Under the British rule, India underwent systematic economic exploitation with its resources and wealth being diverted to Britain." Justify the given statement with valid explanation. Appraise the Navratan policy adopted by the Government of India in the reforms of 1991.

Question

Accepted Answer

I **justify** the statement that India underwent systematic economic exploitation under British rule. Justification:

1. **Drain of Wealth:** India became exporter of raw materials and importer of finished goods. Export surplus was used to pay for British office expenses, war costs, and invisible imports.

2. **De-industrialisation:** British systematically destroyed Indian handicraft industries through discriminatory tariff policy.

3. **Zamindari System:** Exploitative land tenure system extracted high revenues from farmers.

4. **Commercialisation:** Forced production of cash crops for British industries.

**Appraisal of New Economic Policy (1991):**
- Liberalisation removed industrial licensing and reduced government controls
- Privatisation improved efficiency of PSUs
- Globalisation integrated Indian economy with world economy
- Led to increased GDP growth, FDI, and foreign exchange reserves