UPSC MainsECONOMICS-PAPER-II202110 Marks150 Words
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Q1.

Examine the factors that facilitated commercialisation of Indian agriculture during the British rule.

How to Approach

This question requires a nuanced understanding of the historical context of Indian agriculture under British rule. The answer should focus on the factors that *facilitated* commercialization, not simply describe it. Key areas to cover include land revenue systems, infrastructure development (railways, irrigation), changes in land ownership, the rise of commercial crops, and the role of market forces and British policies. A chronological structure, highlighting the evolution of these factors, would be effective. Avoid simply listing factors; explain *how* they contributed to commercialization.

Model Answer

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Introduction

Commercialization of Indian agriculture, signifying a shift from subsistence farming to production for the market, was a significant feature of the British colonial period. Prior to British rule, while some degree of trade existed, Indian agriculture was largely geared towards meeting local needs. The British, driven by the need for raw materials for their industries and revenue to finance their administration and trade, actively reshaped the agricultural landscape. This transformation wasn’t a deliberate policy of commercialization initially, but rather an outcome of various interconnected factors implemented over time, fundamentally altering the structure and orientation of Indian agriculture.

Land Revenue Systems and Their Impact

The introduction of new land revenue systems played a crucial role. Systems like the Permanent Settlement (1793) in Bengal, the Ryotwari System (introduced by Thomas Munro in Madras), and the Mahalwari System (North-Western Provinces), while differing in their implementation, all had the common effect of transforming peasants into landowners with the obligation to pay revenue in cash. This compelled them to produce crops for sale to meet these demands.

  • Permanent Settlement: Created a class of zamindars who were interested in maximizing profits, leading to increased exploitation of tenants and a focus on commercial crops.
  • Ryotwari & Mahalwari: While intended to be more direct, the pressure to pay cash revenue still pushed peasants towards commercialization.

Infrastructure Development

The British invested in infrastructure, albeit primarily to serve their own interests, which inadvertently facilitated agricultural commercialization.

  • Railways: The extensive railway network (starting in 1853) connected agricultural regions to ports and markets, reducing transportation costs and enabling the large-scale movement of agricultural commodities like cotton, jute, and indigo.
  • Irrigation: Large-scale irrigation projects, such as the Sirhind Canal (1886) and the Ganga Canal, expanded the area under cultivation and allowed for the production of water-intensive commercial crops.
  • Roads & Ports: Improvements in roads and port facilities further streamlined the movement of goods.

Changes in Land Ownership and Production

The British policies led to changes in land ownership patterns and cropping patterns.

  • Decline of Village Communities: The weakening of traditional village communities and the rise of individual land ownership eroded traditional systems of cooperation and self-sufficiency.
  • Commercial Crop Focus: The demand for raw materials in Britain led to a shift towards commercial crops like indigo, cotton, jute, tea, and opium. The Indigo Commission of 1866 investigated the plight of indigo farmers due to exploitative practices.
  • De-industrialization: The decline of Indian handicrafts due to British policies forced many artisans and weavers to seek employment in agriculture, increasing the labor supply and contributing to commercialization.

Role of Market Forces and British Policies

British policies and the emergence of market forces further propelled commercialization.

  • Free Trade Policy: The adoption of a free trade policy in the mid-19th century opened up Indian agriculture to international markets, increasing competition and incentivizing commercial production.
  • Company’s Procurement Policies: The East India Company actively procured raw materials like cotton and opium for export, creating a demand that encouraged farmers to grow these crops.
  • Money Lending: The growth of a money-lending class, often linked to traders and merchants, provided credit to farmers, enabling them to invest in commercial crops but also leading to indebtedness.
Factor Impact on Commercialization
Land Revenue Systems Created pressure to pay cash revenue, incentivizing market-oriented production.
Railway Development Reduced transportation costs, expanded market access.
Commercial Crop Demand Shifted cropping patterns towards profitable cash crops.
Free Trade Policy Integrated Indian agriculture into global markets.

Conclusion

The commercialization of Indian agriculture during British rule was a complex process driven by a confluence of factors. While infrastructure development and market forces played a role, the core impetus came from the land revenue systems and the British need for raw materials. This transformation, however, was often exploitative, leading to increased indebtedness, land alienation, and vulnerability to market fluctuations for Indian farmers. The legacy of this period continues to shape the structure and challenges of Indian agriculture today.

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

Commercialization of Agriculture
The process by which agriculture shifts from production primarily for self-consumption to production for exchange in the market.
Zamindari System
A land tenure system introduced by the British, where land was held by zamindars (landlords) who collected revenue from peasants and paid a fixed amount to the government.

Key Statistics

Between 1855-1860 and 1900-1905, the area under cotton cultivation in India increased from 2.5 million acres to 5.1 million acres, demonstrating the shift towards commercial crops. (Source: Indian Economic History, 1900-1950 by Dharma Kumar)

Source: Dharma Kumar, Indian Economic History, 1900-1950

The proportion of land revenue to total government revenue increased significantly during British rule, from around 23% in 1820 to over 50% by the mid-19th century, indicating the importance of agricultural revenue to the colonial administration. (Source: Bipan Chandra, India’s Struggle for Independence)

Source: Bipan Chandra, India’s Struggle for Independence

Examples

Indigo Revolt (1859-60)

The Indigo Revolt in Bengal was a direct consequence of the exploitative practices employed by indigo planters, forcing farmers to grow indigo under unfavorable terms. This revolt highlighted the negative consequences of forced commercialization.

Frequently Asked Questions

Was commercialization of agriculture beneficial for Indian farmers?

While it provided some economic opportunities, commercialization largely benefited the British and a small class of Indian merchants and landowners. Most farmers faced increased indebtedness, exploitation, and vulnerability to price fluctuations.

Topics Covered

HistoryEconomyColonial IndiaAgricultureEconomic History