Agriculture was the Main Source of Income

But Various kinds of Manufacturing Activities also carried out

 

India was known for following

  • Handicraft Goods -
  • Cotton & Silk Textiles
  • Metals
  • Precious Stones

There was worldwide demand of goods due to

  • Good Quality of Material
  • Good Craftsmanship (Good skill of Labor)


Example-

Bengal was famous for cotton textile called Muslin

One Variety of Muslin was Malmal which was very famous

Status of Indian Economy before British Rule - Teachoo.JPG

 

 

Status of Indian Economy During British Rule

Britishers were more interested in

  • Economic Interest of their home country
  • Not concerned with Indian Economic Development

What was the Economic Policy of britisheres - Teachoo.JPG

India became Supplier of Raw Material to Britain and Purchaser of Finished Goods from Britain

Before British Rule  During British Rule - Teachoo.JPG


Govt Did not even estimate India's National Income and Per capita Income

Some notable economists estimated India's per capita income like

Dadabhai Naoroji, William Digby,Findlay Shirras, V.K.R.V. Rao and R.C. Desai —

Estimates of V.K.R.V Rao were considered significant

India's Growth in Real Output was 2% and per capita output was 0.5%

India s Real Output Growth During British Rule - Teachoo.JPG

Indias Per Capital Output Growth During British rule - Teachoo.JPG

 

Who estimated india real output per capita output -  Teachoo.JPG

NCERT Questions

Q2
Name some notable economists who estimated India’s per capita income during the colonial period.
Answer
Some notable economists who estimated India's per capita income were:
Dadabhai Naoroji, William Digby,Findlay Shirras, V.K.R.V. Rao and R.C. Desai —

Estimates of V.K.R.V Rao were considered significant
India's Growth in Real Output was 2% and per capita output was 0.5%


MCQ Other Books

Q1
In the following questions, select the correct answers:
The foundation of British Empire in India was laid by the Battle of Plassey fought in ____.

  1. 1757
  2. 1857
  3. 1763
  4. 1747
View Answer

Q2
First attempt to estimate the National Income in India during British period was made by:

  1. Findlay Shirras
  2. William Digby
  3. Dadabhai Naoroji
  4. V.K.R.V. Rao
View Answer
  1. Class 12 NCERT
  2. Indian Economic Development

Transcript

Status of Indian Economy before British Rule (How was India’s Economy Before 1757 during Mughal Rule) Agriculture Sector (Farming) Manufacturing Sector India was also known for Handicraft Industry (Hand made goods ) Cotton and Silk Textiles Metals & Precious Stones There was Worldwide Demand due to Good Quality Material Skilled Craftsman (labour) (Malmal Cloth of Bengal very famous) What was the Economic Policy of Britishers Indian Economic Development Not in Priority Economic Interests of Britain Top Priority India Exported Cotton (Raw Material) Imported Shirts (Finished goods) Britain Purpose was to Reduced India into Raw Material Supplier for British Factories And Customer for Finished Foosa Before British Rule India Exported Foreign Handicraft Goods and Earned Foreign Exchange (Gold) Exported Handicraft goods India World Received Money(Gold) This was good for Indian Industry During British Rule India was both Raw Material Supplier and Customer of Finished Goods India Exported Cotton (Raw Material) Britain Imported Shirts (Finished goods) Indian Industry Suffered Losses British Industry Prospered India’s Real Output Growth During British Rule Actual (Adjusted for Inflation) GDP % Growth Before Independence What is Real Output Growth It is GDP Growth Rate adjusted for inflation Example GDP in 2020 =100000 crores GDP in 2021 = 108000 crore GDP increased by 8000 Cr GDP Growth=8000/100000= 8% Real Output Growth =GDP Growth =8% This was less than 2% During British Rule (Very less Growth) India’s Per Capita Output Growth During British Rule Per Population GDP % Growth Before Independence (Per Capita GDP=GDP/Population) Example Year 2020 Year 2021 GDP 100000 Cr 108000 Cr Population 100 Cr 105 Cr Per Capita Output 1000 /Person 1029/Person Per Capita GDP in 2020 =Rs 1000 Per Capita GDP IN 2021 =Rs 1029 Per Capita GDP increased by 29 Per Capital GDP Growth =29/1000= 2.9% Per Capita Output Growth =2.9% This was 0.5% During British Rule (Very less Growth) What was India’s Real Output Growth & Per Capita Output During British Rule? What is Real Output Growth It is other name of GDP Growth Rate (GDP is Value of Goods and Services Produced in a country) Example GDP in 2020 =100000 crores GDP in 2021 = 108000 crore GDP increased by 8000 Cr GDP Growth=8000/100000= 8% Real Output Growth =GDP Growth =8% This was less than 2% During British Rule (Very less Growth) What is Per Capita Output Growth It is other name of GDP Growth per person (Per Capita GDP=GDP/population) Example Year 2020 Year 2021 GDP 100000 Cr 108000 Cr Population 100 Cr 105 Cr Per Capita Output 1000 /Person 1029/Person Per Capita GDP in 2020 =Rs 1000 Per Capita GDP IN 2021 =Rs 1029 Per Capita GDP increased by 29 Per Capital GDP Growth =29/1000= 2.9% Per Capita Output Growth =2.9% This was less than 0.5% during British Rule (Very less Growth) Who Estimated India’s Real Output & Per Capita Output During British Rule? Estimate by British Govt Estimate by Independent Economists Did not measure Real Output Growth -- less than 2% Per Capita Output Growth -0.5% Dada Bhai Naroji He was first one to estimate National Income in 1868 V.K.R.V. Rao His work considered Most significant

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