UPSC MainsECONOMICS-PAPER-II201615 Marks150 Words
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Q7.

Critically examine condition of Agriculture and rural economy during the pre-independence era.

How to Approach

This question requires a critical assessment of the agricultural and rural economic conditions in India before 1947. The answer should focus on the exploitative nature of land revenue systems, the decline of traditional industries, indebtedness, and the resulting agrarian distress. A chronological approach, highlighting key phases and policies, is recommended. Mentioning the impact of British policies on the Indian economy and the resulting famines is crucial. Structure the answer into sections covering land systems, de-industrialization, rural debt, and socio-economic consequences.

Model Answer

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Introduction

Prior to India’s independence, the agricultural and rural economy was characterized by stagnation, exploitation, and widespread poverty. The pre-colonial Indian economy, while not without its issues, possessed a degree of self-sufficiency and vibrancy, particularly in textile production. However, the advent of British rule fundamentally altered this landscape. The introduction of new land revenue systems, coupled with the decline of traditional industries, led to a significant deterioration in the condition of both agriculture and the rural populace. This answer will critically examine these conditions, highlighting the key features and consequences of British economic policies.

Land Revenue Systems and Their Impact

The British introduced various land revenue systems, each with its own set of problems. These systems aimed to maximize revenue collection, often at the expense of the peasantry.

  • Permanent Settlement (1793): Implemented in Bengal, Bihar, and parts of Orissa, it created a class of landlords (Zamindars) who had ownership rights but were often exploitative towards tenants.
  • Ryotwari System (1820s): Introduced in Madras, Bombay, and parts of Assam, it directly settled land rights with the cultivators, but high revenue demands led to widespread indebtedness.
  • Mahalwari System (1833): Prevalent in North-Western India, it recognized village communities as units of collective ownership, but still imposed heavy taxes.

These systems disrupted traditional landholding patterns, increased the burden on cultivators, and led to land alienation. The rigid revenue demands, irrespective of crop failure, resulted in frequent defaults and loss of land.

De-industrialization of the Rural Economy

Prior to British rule, India was a major exporter of textiles and other manufactured goods. However, British policies actively promoted the destruction of Indian industries.

  • Discriminatory Tariffs: High tariffs were imposed on Indian goods entering Britain, while British goods were allowed into India duty-free.
  • Suppression of Indian Handicrafts: The influx of cheap, machine-made goods from Britain undermined the demand for Indian handicrafts, leading to unemployment and economic hardship for artisans.
  • Decline of Traditional Industries: Industries like textiles, shipbuilding, and metallurgy suffered a severe decline, leading to a loss of livelihood for millions of rural artisans.

This de-industrialization forced many artisans and rural workers to return to agriculture, increasing pressure on land and exacerbating agrarian distress.

Rural Indebtedness and Agrarian Distress

The combination of high land revenue demands, declining industrial opportunities, and exploitative moneylending practices led to widespread rural indebtedness.

  • Moneylenders: Rural moneylenders charged exorbitant interest rates, trapping peasants in a cycle of debt.
  • Famines: Frequent famines, exacerbated by British policies of grain export and lack of famine relief, further impoverished the peasantry. The Great Bengal Famine of 1770, the Madras Famine of 1876-78, and the Indian Famine of 1896-1900 are stark examples.
  • Land Alienation: Unable to repay debts, peasants were forced to sell their land to moneylenders and landlords, leading to land alienation and the growth of a landless labor force.

The situation was further complicated by the lack of investment in irrigation and agricultural infrastructure, making Indian agriculture vulnerable to monsoon failures.

Socio-Economic Consequences

The conditions described above had profound socio-economic consequences.

  • Poverty and Malnutrition: Widespread poverty and malnutrition were rampant in rural areas.
  • Social Unrest: Agrarian unrest and peasant revolts, such as the Indigo Revolt (1859-60) and the Deccan Riots (1875-76), became common occurrences.
  • Migration: Landless laborers and impoverished peasants were forced to migrate to urban areas in search of work, contributing to urban overcrowding and social problems.
Policy/System Impact
Permanent Settlement Created a landlord class, increased exploitation of tenants
Ryotwari System High revenue demands, widespread indebtedness
De-industrialization Loss of livelihood for artisans, increased pressure on land
Famines Mass starvation, increased poverty and indebtedness

Conclusion

In conclusion, the pre-independence agricultural and rural economy was deeply flawed, characterized by exploitative land revenue systems, the deliberate destruction of traditional industries, and widespread rural indebtedness. British policies, driven by the pursuit of economic gain, systematically undermined the Indian economy and impoverished the rural population. This legacy of exploitation and stagnation continued to haunt India even after independence, necessitating significant reforms to address the structural imbalances and improve the livelihoods of the rural masses.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Zamindari System
A land tenure system introduced by the British in which land ownership was vested in Zamindars (landlords) who collected revenue from tenants.
De-industrialization
The decline of domestic industries in a country, often due to competition from foreign imports or unfavorable government policies.

Key Statistics

Between 1876-78, the Great Famine of Madras resulted in an estimated 5.5 million deaths. (Source: Davis, Mike. *Late Victorian Holocausts: El Niño Famines and the Making of the Third World*.)

Source: Davis, Mike. *Late Victorian Holocausts: El Niño Famines and the Making of the Third World*.

India’s share of world manufacturing output declined from 24.5% in 1750 to 2.2% in 1900 during British rule. (Source: Angus Maddison, *Contours of the World Economy, 1–2030 AD*)

Source: Angus Maddison, *Contours of the World Economy, 1–2030 AD*

Examples

Indigo Revolt

The Indigo Revolt of 1859-60 in Bengal was a peasant uprising against the oppressive practices of indigo planters, who forced farmers to grow indigo under unfavorable terms.

Frequently Asked Questions

What was the impact of the British railway network on the rural economy?

While intended for administrative and commercial purposes, the railway network also facilitated the transportation of grain from rural areas to ports for export, often during times of scarcity, exacerbating famine conditions.

Topics Covered

HistoryEconomyAgricultureRural EconomyColonialism