Class 11th Economics – Indian Economy – Chapter 1 – Question 3

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Q3. What were the main causes of India’s agricultural stagnation during the colonial period?

India’s agricultural stagnation during the colonial period was the result of several interconnected factors:

  1. Exploitative land revenue systems
    The British introduced systems such as the zamindari settlement, where revenue was collected by intermediaries. Zamindars focused on extracting rent rather than investing in agriculture, leaving cultivators impoverished and insecure.

  2. High land revenue demands
    Revenue had to be paid in cash and on fixed dates, regardless of crop failure or natural calamities. This forced peasants into debt and discouraged long-term investment in land improvement.

  3. Lack of investment and technology
    There was minimal investment in irrigation, flood control, drainage, fertilisers and improved tools. Agriculture continued with primitive methods, resulting in low productivity.

  4. Commercialisation of agriculture
    Farmers were encouraged to grow cash crops instead of food crops to meet the needs of British industries. This did not improve farmers’ incomes and increased vulnerability to famines and food shortages.

  5. Insecurity of tenancy
    Tenants, sharecroppers and small farmers lacked ownership rights and incentives to invest in land, leading to neglect and poor yields.

  6. Frequent famines and natural calamities
    Poor infrastructure, inadequate relief measures and dependence on monsoons made agriculture highly vulnerable to droughts and floods.

  7. Neglect by colonial administration
    Since colonial policies prioritised British economic interests, agricultural development in India was largely ignored.

In summary, agriculture remained stagnant because it was exploitative, under-invested and commercially distorted, despite being the main livelihood of the majority of India’s population during the colonial period.

Q4. Name some modern industries which were in operation in our country at the time of independence.

At the time of independence, only a limited number of modern industries had developed in India. Some of the important ones were:

  • Cotton textile industry (mainly in Maharashtra and Gujarat)

  • Jute industry (largely concentrated in Bengal)

  • Iron and steel industry (notably the Tata Iron and Steel Company established in 1907)

  • Sugar industry

  • Cement industry

  • Paper industry

However, the overall industrial base was weak and narrow, and capital goods industries were almost absent, which severely restricted India’s industrial growth during the colonial period.

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