Pre-independence economy: Agriculture and trade

1. Agriculture in Pre-Independence India

1. Agrarian Economy: Agriculture was the primary source of livelihood for nearly 85% of the population.
2. Subsistence Farming: Most farmers practiced subsistence farming, focusing on food crops for personal consumption.
3. Land Revenue System: The British introduced exploitative systems like Zamindari, Ryotwari, and Mahalwari.
4. Cash Crops: Increased focus on cash crops like cotton, jute, and indigo for export to Britain.
5. Deindustrialization: Decline of traditional industries led to increased dependency on agriculture.
6. Famines: Recurrent famines, such as the Bengal famine of 1943, were exacerbated by British policies.
7. Low Productivity: Lack of investment in irrigation, seeds, and fertilizers kept productivity low.
8. Fragmentation of Land: Over time, landholdings became smaller due to inheritance laws.

2. Trade in Pre-Independence India

1. Colonial Exploitation: India became a supplier of raw materials and a market for British goods.
2. Decline of Exports: Export of manufactured goods like textiles was replaced by raw materials.
3. Import of British Goods: Flooding of cheap British manufactured goods led to the decline of local industries.
4. Unfavorable Trade Balance: Trade policies favored Britain, leading to a persistent drain of wealth.
5. Opium Trade: India became a major supplier of opium to China under British directives.
6. Ports and Railways: Infrastructure was developed to facilitate the export of raw materials and import of British goods.
7. Loss of Artisan Industries: Handicrafts and small-scale industries suffered due to competition with British factories.

3. Key Impacts of British Policies

1. Drain of Wealth: Colonial policies led to a systematic transfer of wealth from India to Britain.
2. Economic Stagnation: Neglect of industrialization and dependence on agriculture hindered growth.
3. Poverty and Unemployment: Exploitative practices led to widespread poverty and unemployment.
4. Monopoly Trade: The British East India Company controlled major trade routes and commodities.

Key Points for Competitive Exams

1. Agriculture was the backbone of the pre-independence economy, with most people dependent on it for livelihood.
2. The British land revenue systems, like Zamindari, heavily exploited farmers.
3. Focus on cash crops like indigo and cotton reduced food production.
4. Frequent famines highlighted the inefficiency of British agricultural policies.
5. Low agricultural productivity was due to outdated practices and lack of investment.
6. The decline of artisan industries forced many into agriculture, overburdening the sector.
7. India became a major exporter of raw materials like cotton and jute.
8. The influx of cheap British goods destroyed indigenous industries.
9. The drain of wealth theory by Dadabhai Naoroji highlighted the economic exploitation by the British.
10. The Bengal Famine of 1943 was a result of British neglect and exploitative policies.
11. The opium trade with China showcased British commercial priorities over Indian welfare.
12. The development of railways and ports was aimed at facilitating British trade interests.
13. India's trade balance during the colonial period was heavily skewed in Britain's favor.
14. The decline of small-scale industries led to economic disempowerment.
15. The pre-independence economy was marked by stagnation and exploitation.
16. Colonial policies prioritized British economic interests over India's development.
17. Infrastructure like roads and railways was designed for resource extraction.
18. Subsistence farming remained the dominant form of agriculture.
19. Fragmentation of landholdings reduced agricultural efficiency.
20. The colonial trade policy promoted the export of raw materials and import of finished goods.