Indian economy is agriculture-based, or we can say India is an agrarian economy, 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 95% dependent on agriculture and the revenues earned from agriculture.
It is worthwhile to mention that around 85% of the population was living in villages, and the only means of subsistence was agriculture.
Concerning agriculture, the situation of the Indian economy on the eve of independence was disheartening.
Agriculture being the most important sector, was facing economic deterioration and stagnation in the economy.
The following was witnessed with the changes in agriculture.
- High Vulnerability
- Low productivity
High vulnerability means a reaction to any situation concerning the change in agricultural factors.
If the country witnesses low rainfall in a month, then the resulting impact will be low output levels and high rate of crop failure.
Low Productivity levels were witnessed, and levels of output declined irrespective of a large area for cultivation.
Also read: Indian Industries during British rule
Here are some factors that led to the stagnation of the agriculture sector.
- The Indian economy was facing the adverse effects of the Zamindari system, the practice of making farmers work and collect rent as tax irrespective of the situation.
- Scarcity of agricultural resources helps in creating stagnancy in agriculture.
- The commercialisation of agriculture meant moving from growing goods for their consumption to growing for the market. The existence of middleman prevented the development of the economic condition of the farmers, which caused stagnation in the agriculture sector.
Agricultural Sector during the Independence
Causes of Stagnation of Indian Agriculture During the Colonial Period
|Q.1- Explain The State Of Agriculture In India On The Eve Of Independence?
What Were The Characteristics Of Indian Agriculture On The Eve Of Independence?
|(B) State Of Agriculture On The Eve Of Independence Can Be Observed By Following Chief Characteristics:|
|(1) Small And Fragmented Land Holdings||
|(2) Use Of Outdated And Old Technology||
|(3) Dependence On Rainfall||
|(4) Low Level Of Productivity And Production||
|(5) Subsistence Farming||
|(6) A Wedge Between Owners Of The Soil And Tillers Of The Soil||
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