Indian economy on the eve of independence

At the time of independence in 1947, India's contribution to the world economy had declined significantly due to colonial rule, falling to less than 2% of the global GDP.

During the colonial period, Rajasthan had a very high proportion of its workforce engaged in agriculture, reflecting the agrarian nature of the economy in that region.

The high death rate in British India was primarily due to the lack of adequate public health facilities, sanitation, and medical infrastructure, which made the population vulnerable to diseases.

During the British colonial period, the infant mortality rate was extremely high, recorded at approximately 218 per 1,000 live births.

During the British colonial period in India, the economic policies stagnated industrial growth and promoted deindustrialization, leaving the vast majority of the population dependent on farming. Consequently, the agriculture sector contributed the major portion of the GDP.

The year 1921 is known as the year of the great divide because it was the last census year before which the population growth was inconsistent, and after which the population began to grow consistently.

The first official census of the entire Indian population was conducted in 1881 under British rule. Prior to this, there were only partial or regional attempts.

The British introduced the telegraph system in India primarily to maintain law and order and to facilitate administrative communication across the vast territory.

The first passenger train in India ran between Bombay (Bori Bunder) and Thane in April 1853.

The development of railways is considered the most significant infrastructure project during British rule, as it facilitated the movement of raw materials and British manufactured goods.

The Suez Canal, which significantly reduced the cost and time of transport between India and Britain, was opened in 1869.

The export surplus generated by India was used to pay for the 'drain of wealth', including administrative expenses in Britain, war costs, and invisible items like shipping and insurance services.

The decay of the Indian handicraft industry resulted from a combination of competition from machine-made British goods, changing consumer preferences, and discriminatory tariff policies that favored British imports.

Jamshedji Tata was the visionary founder of the Tata Iron and Steel Company (TISCO).

TISCO was established in 1907 in Jamshedpur.

Modern industries emerged in India during the second half of the 19th century (1850s onwards). Cotton mills, jute mills, and railway workshops were established in this period. The answer '19' refers to the 19th century.

At the time of independence, the industrial sector was characterized by a lack of capital goods industries and a very limited role for the public sector in industrial development.

The land settlement system, particularly the Zamindari system, created a class of intermediaries who exploited farmers, leading to agricultural stagnation.

Dadabhai Naoroji (also spelled Dadabhai Naoroji) was the first to estimate India's national income during British rule in his work 'Poverty and Un-British Rule in India' (1901). His calculations revealed the massive drain of wealth to Britain.