Indian economy on the Eve of Independence NCERT class 11 Economics Chapter 1

In this class, you are going to learn from the NCERT class 11th Economics Chapter 1. This study resource possesses high knowledge and Natural resources, gold mines, human resources, iron ores, and wealth also underwent extreme misuse and manipulation. This chapter will explain a brief introduction to the Indian economy on the Eve of Independence.

Though after independence, some of the Indians attempted to estimate India’s economy. However, the attempt failed due to need for expertise, inconsistency, and inaccuracy.

Let us understand more insight into various phases of the Indian economy on the eve of independence.

  • Agriculture sector
  • Industrial sector
  • Foreign Trade
  • Occupational structure
  • infrastructure

Agriculture sector On The Eve Of Independence

Indian economy is agriculture-based, this is evident from the fact that the National income of India consists of 70% of the income generated from agriculture. Before independence, the Economy was 90% on agriculture and the revenues earned from agriculture.

Worth is mentioned that around 80% of the population was living in villages, and the only means of subsistence was agriculture.
We have to concern agriculture, the situation of the Indian economy on the eve of independence was disheartening. Here some of the factors that led to the stagnation of the agriculture sector.

  1. The Indian economy is facing the adverse effects of the Zamindari system, the practice of making farmers work, and collect rent as tax irrespective of the situation.
  2. The scarcity of agricultural resources helps in creating stagnancy in agriculture.
  3. The commercialization of agriculture meant moving from growing goods for their consumption to growing for the market. The existence of middlemen prevented the development of the economic condition of the farmers, which caused stagnation in the agriculture sector.

Industrial Sector On The Eve Of Independence

India is one of the well known industrial sectors for the textile and handicrafts in the olden days. In history, India is full of information. It was an established nation dealing in textile, Pisces and metals, silk and cotton, etc.

When the British arrived in India, the industries were destroyed slowly. The Britishers followed the process of de-industrialization of Indian industries to make way for British industries to flourish. Here some points about the situation of industries during British Rule.

1. Decay of Handicraft Industries: In India, the traditional handicraft industries flourishing industries, and it is known worldwide. But Britishers arrived in India, they stopped the practice of using handicraft exports by placing tariffs on exports. Also, there was stiff competition from machine-made products. With the introduction of Railways, British products reach has increased to every corner of the country. All these factors led to the downfall of the textile and handicraft industries in India.

2. Modern Industries very slow in growth: The lopsided infrastructure is the presence of a result in the limited or slow growth of enterprises. Besides, there was a scarcity of basic and heavy industries that hindered growth.

Foreign Trade On The Eve Of Independence

Foreign trade in the sense the exchange of goods and services between two or more countries. At the time of the Indian economy on the Eve of Independence, India is one of the important trading countries, exporting primary items like cotton, raw silk, sugar, wool, jute, and indigo, etc. And moreover, it is importers of finished goods like woolen clothes, cotton, silk, and capital goods like light machinery manufactured in Britain.

During that period, Britain held a monopoly over India’s imports and exports. Therefore, most of a foreign trade was small only in Britain, and the rest half was allowed to trade with other countries like Ceylon (Sri Lanka), China, and Persia (Iran).

India is a large exporter in the colonial period. However, it did not affect the country’s economy. Products like food grains, clothes, and kerosene hit the country hard with its scarcity.

Occupational structure On The Eve Of Independence

The occupational structure is the percentage a nation refers to its workforce employed in various economic ventures. To put it in other words, from a joint how many of the total working population are employed in agriculture and associated activities and how many of them are involved in the manufacturing and service sector can be identified from the occupational structure of the nation. The Rest of things given in a text refer to it.

Infrastructure in India

During the colonial period, India was one of the basic infrastructures such as water transport, railways, post & telegraph, and ports were developed, but to the colonial interest to serve the common people. The roads constructed were not fit for modern India, couldn’t connect rural areas, and shortage of well-constructed roads, especially in the rainy season, was the drawback. Infrastructure.


So we have understood the economics chapter 1. The Indian economy on the Eve of Independence which helps the students to comprehend and learn all those fastly.

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