UPSC MainsECONOMICS-PAPER-II201815 Marks
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Q8.

British rule led to India's underdevelopment'. Do you agree? Give reasons in support of your answer.

How to Approach

This question requires a nuanced understanding of the impact of British rule on India's economic development. A direct 'yes' or 'no' answer is insufficient. The answer should acknowledge both the detrimental and, to a limited extent, potentially beneficial aspects of British rule. Structure the answer by first outlining the pre-colonial Indian economic situation, then detailing the exploitative economic policies of the British, and finally, acknowledging any limited positive consequences. Focus on sectors like agriculture, industry, and trade. Conclude with a balanced assessment.

Model Answer

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Introduction

The assertion that British rule led to India’s underdevelopment is a long-standing and complex debate. Prior to British colonization, India possessed a thriving economy, renowned for its textile industry, shipbuilding, and sophisticated agricultural practices. However, the advent of British rule in the 18th century dramatically altered this trajectory. While proponents argue for some infrastructural development, a critical examination of British economic policies reveals a systematic dismantling of indigenous industries and a redirection of resources towards serving British interests. This essay will argue that, on balance, British rule significantly contributed to India’s underdevelopment, despite some limited positive externalities.

Pre-Colonial Indian Economy

Before the arrival of the British, India had a flourishing economy. It was characterized by:

  • Agricultural Prosperity: India was a major exporter of agricultural products like rice, wheat, and spices.
  • Industrial Strength: The textile industry, particularly in Bengal, was globally competitive, producing high-quality cotton and silk fabrics. Shipbuilding was also a significant industry.
  • Thriving Trade: India engaged in extensive internal and external trade with countries in Asia, Africa, and Europe.
  • Decentralized Production: Production was largely decentralized, with artisans and craftsmen organized into guilds.

Exploitative Economic Policies of the British

1. De-industrialization

The British implemented policies that systematically destroyed India’s traditional industries. This process, known as de-industrialization, was driven by:

  • High Tariffs on Indian Goods: Heavy tariffs were imposed on Indian exports to Britain, making them uncompetitive.
  • Import of Machine-Made Goods: Britain flooded the Indian market with cheap, machine-made goods from its factories, undermining local artisans.
  • Discouragement of Local Manufacturing: Policies actively discouraged the development of Indian manufacturing capabilities.

The decline of the textile industry is a prime example. Before British rule, India accounted for 25% of global textile exports; by the mid-19th century, this share had plummeted to less than 2% (Source: Angus Maddison, *Contours of the World Economy, 1-2030 AD* - knowledge cutoff 2010).

2. Land Revenue Systems

The British introduced various land revenue systems – Permanent Settlement (Bengal), Ryotwari System (Madras), and Mahalwari System (North India) – which had devastating consequences for Indian agriculture:

  • High Revenue Demands: Revenue demands were often exorbitant, leading to widespread indebtedness and land alienation among farmers.
  • Commercialization of Agriculture: Farmers were forced to grow cash crops like indigo and opium, neglecting food crops, leading to famines.
  • Zamindari System: The Permanent Settlement created a class of absentee landlords who exploited the peasantry.

The Bengal famine of 1943, exacerbated by wartime policies and the diversion of resources, is a stark example of the consequences of these policies.

3. Drain of Wealth

A significant portion of India’s wealth was systematically drained to Britain through various mechanisms:

  • Home Charges: Payments made to British officials and for administrative expenses in Britain.
  • Remittances: Profits earned by British companies and individuals were sent back to Britain.
  • Debt Repayments: India was forced to repay debts incurred by the British East India Company and the British government.

Dadabhai Naoroji, in his *Poverty and Un-British Rule in India* (1901), estimated the annual drain of wealth to be around £300 million (equivalent to billions of dollars today).

4. Infrastructure Development – A Double-Edged Sword

While the British did invest in infrastructure like railways, roads, and canals, these were primarily designed to facilitate the extraction of resources and the movement of troops, rather than for the benefit of the Indian population.

  • Railways: Primarily used to transport raw materials to ports for export to Britain.
  • Canals: Focused on irrigating areas producing cash crops for British industries.

Limited Positive Consequences

It is important to acknowledge that British rule did have some limited positive consequences:

  • Introduction of Modern Education: The establishment of schools and universities introduced modern education, albeit limited in scope.
  • Development of a Unified Legal System: The British introduced a codified legal system, which provided a degree of uniformity and predictability.
  • Administrative Reforms: Some administrative reforms, such as the establishment of a civil service, improved governance.

However, these benefits were often outweighed by the negative consequences and were primarily intended to serve British interests.

Aspect Pre-British India British India
Industrial Sector Globally competitive, decentralized De-industrialized, dependent on imports
Agriculture Subsistence & Commercial, diverse crops Commercialized, focused on cash crops, prone to famines
Trade Extensive internal & external trade Trade controlled by British interests, drain of wealth

Conclusion

In conclusion, while acknowledging some limited positive externalities, the evidence overwhelmingly suggests that British rule significantly contributed to India’s underdevelopment. The systematic dismantling of indigenous industries, exploitative land revenue systems, and the drain of wealth impoverished the Indian economy and left a lasting legacy of economic backwardness. The infrastructure development, while present, was primarily geared towards serving British interests. The consequences of these policies continue to shape India’s economic landscape today, necessitating continued efforts to address historical inequalities and promote inclusive growth.

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

De-industrialization
The decline of industrial activity in a region or country, often caused by factors such as competition from foreign industries, technological changes, or government policies.
Drain of Wealth
The transfer of economic resources from a colony to the colonizing power, often through exploitative trade practices, remittances, and debt repayments.

Key Statistics

India's share of world GDP declined from 22.6% in 1700 to 3.8% in 1900 under British rule.

Source: Angus Maddison, *Contours of the World Economy, 1-2030 AD* (knowledge cutoff 2010)

Between 1900 and 1947, India experienced over 20 major famines, resulting in an estimated 15-30 million deaths.

Source: Amartya Sen, *Poverty and Famines: An Essay on Entitlement and Deprivation* (1981)

Examples

The Indigo Revolt

The Indigo Revolt of 1859-60 in Bengal was a peasant uprising against the forced cultivation of indigo by British planters. It highlighted the exploitative nature of British agricultural policies and the suffering of Indian farmers.

Frequently Asked Questions

Did British rule have any positive impacts on the Indian economy?

While limited, British rule introduced modern education, a unified legal system, and some infrastructure development. However, these benefits were often secondary to British interests and were overshadowed by the negative consequences of exploitative economic policies.

Topics Covered

HistoryEconomyColonialismEconomic HistoryDevelopment Economics