Was there any economic drain during the colonial period? Explain.
Download our app for free and get started
During the colonial period there was economic drain, i.e., drain of Indian wealth, by way of the following facts.
- Large export surplus generated by the foreign trade during the colonial period was primarily for bearing the expenses of war fought by Britain. It was also used to maintain its administrative set up. This came at a huge cost to country's economy, as it was not used in any developmental activity of India. Many essential commodities, in turn like foodgrains, kerosene etc. were in scarce supply in the domestic market.
- Commercialisation of agriculture promoted the cultivation of cash crops like indigo etc. at the cost of food crops. This was the vested move of the Britishers to benefit largely by using these cash crops in their industries as raw materials in Britain.
- Competition from machine-made goods from Britain led to the decline of world famous Indian handicrafts. This brought about massive unemployment, poverty and misery in the country.
- Introduction of railways by the British also contributed to economic drain during the colonial period. Railways facilitated in turning India into a large market for the finished products of British industries.
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View Solution
- State any one positive contribution made by the British in India.
- Indicate the volume and direction of foreign trade of India at the time of Independence.
- 2View Solution'The railways affected the structure of the Indian economy positively, as well as negatively.' Discuss.
- 3View SolutionExplain four main causes of India's agricultural stagnation during colonial period.
- 4View SolutionHow did the construction of railways affect the structure of the Indian economy?
- 5View SolutionBriefly discuss the industrial development pattern on the eve of Independence.
- 6View SolutionExplain any four characteristics of the Indian Economy at the eve of independence.OR
What were the main features of Indian economy at the eve of Independence? - 7Read the passage given below and answer the following questions from 1 to 4. Foreign Portfolio Investors (FPIs) have stepped up purchases of Indian stocks in the past six trading sessions following a meeting between Prime Minister Narendra Modi and top overseas funds on November 5. These investors have pumped in close to Rs. 30,200 crore since the meeting where the government showcased recent reforms as against Rs. 21,826 crore in the whole of October. In November so far, FPIs have invested Rs. 32,777 crore in domestic stocks, driving the Sensex and Nifty to record highs recently. "Lot of investors appreciated the reforms undertaken in agriculture and labour markets and appreciated the opportunities India offered" said a government official. Modi told the fund managers in the interaction that he is open to any feedback the investors may have according to the official. Modi's pitch to global investors comes amidst loose monetary policy followed by global Central Banks that has led to a chunk of that liquidity entering emerging market. Source: Economic Times, Nov. 17, 2020View Solution
- Reforms undertaken in agriculture and ......... markets have promoted foreign investments.
- labour
- industry
- manager
- None of these
- Inflow of liquidity in emerging market is due to $\boxtimes\boxtimes\boxtimes\ \boxtimes$ monetary policy.
- strict
- loose
- simple
- None of the above
- Financial sector includes:
- investment banks
- stock exchange operations
- foreign exchange market
- All of the above
- Foreign institutional investors are..........?
- merchant bankers
- mutual funds
- pension funds
- All of the above
- 8View SolutionWhat was the impact of development and construction of railways by the British rulers on Indian economy?
- 9View SolutionWhat do you understand by the drain of Indian wealth during the colonial period?
- 10View SolutionGive a quantitative appraisal of India’s demographic profile during the colonial period.