Q. Examine critically the various facets of economic policies of the British in India from the British in India from mid-eighteenth century till independence. (150 words, 10 Marks)
Why the Question?
UPSC PYQ – CSE Mains Exam – 2014
Keywords of the Question
- Various facets of economic policies
- British in India
- Mid-eighteenth century till independence (stipulated time frame)
Directive Word
Critically Examine – Look in close detail and establish the key facts and important issues surrounding a topic. You should try and offer reasons as to why the facts and issues you have identified are the most important, as well as explain the different ways they could be construed.
How to approach this Question?
Introduction:
- Begin by briefly introducing the context: the period from the mid-eighteenth century until India’s independence.
- Mention that during this time, India was under British colonial rule, and economic policies significantly impacted the country’s development.
- Set the tone for a critical examination of these policies.
Body:
- Land Revenue Policies:
- Mention the Permanent Settlement (1793) and the Ryotwari System (1820s).
- Evaluate their impact on landownership, agricultural productivity, and rural economy.
- Industrial Policies:
- Analyze the impact of British industrial policies on Indian industries.
- Discuss deindustrialization, decline of traditional crafts, and the emergence of a raw material supplier economy.
- Trade Policies:
- Examine the impact of British trade policies, including the discriminatory tariff system.
- Discuss the drain of wealth due to exports of raw materials and imports of finished goods.
- Infrastructure Development:
- Evaluate British investments in railways, telegraphs, and ports.
- Consider whether these developments primarily served colonial interests or benefited India.
- Financial Policies:
- Discuss the establishment of the Reserve Bank of India (1935) and currency reforms.
- Evaluate their impact on monetary stability and financial institutions.
- Famine Policies:
- Critically assess British responses to famines, such as the Bengal Famine of 1943.
- Discuss relief measures, food policies, and their effectiveness.
- Social Impact:
- Consider the impact of economic policies on Indian society, including income disparities, poverty, and social inequality.
Conclusion:
- Summarize the multifaceted impact of British economic policies on India.
- Highlight both positive and negative aspects.
- Conclude by emphasizing the need for a balanced assessment to understand India’s economic history during this period.
Answer Key
Introduction
The period from the mid-eighteenth century until India’s independence witnessed significant economic policies under British colonial rule. These policies shaped India’s socio-economic landscape, impacting landownership, industrialization, trade, infrastructure, finance, and social equity.
Body
- Land Revenue Policies:
- Permanent Settlement (1793): Led to absentee landlordism, exploitation, and reduced incentives for agricultural improvement.
- Ryotwari System (1820s): While it improved revenue collection, it burdened small farmers and disrupted traditional land tenure systems.
- Industrial Policies:
- Deindustrialization: Traditional Indian crafts suffered due to competition from British goods. (Example: decline of the Bengal muslin industry)
- This severely undermined the economic self-sufficiency of India.
- Trade Policies:
- Discriminatory Tariff System: Like the Salt Act, exorbitant taxes facilitated wealth transfers to Britain
- Drain of Wealth: Includes repatriation of profits by British companies, salaries and pensions of British officials, and interest payments on loans taken for infrastructure projects like railways, exports of raw materials (cotton, jute, tea) and imports of textiles.
- Infrastructure Development:
- Railways, Telegraphs and Ports: Primarily served colonial interests
- Financial Policies:
- Federal Bank (1935): Initial focus was on currency management for British interests.
- Currency Reforms: Standardization of currency improved stability but didn’t address broader economic issues.
- Famine Policies:
- Bengal Famine (1943): British responses were inadequate, emphasizing market forces over relief measures.
- Food Policies: Export-oriented agriculture exacerbated food scarcity during famines.
- Social Impact:
- Income Disparities: Policies widened the gap between rich zamindars and impoverished peasants.
- Social Inequality: Caste-based discrimination persisted, affecting economic opportunities.
Conclusion
British economic policies in India were multifaceted, with both positive (infrastructure development) and negative (exploitation, deindustrialization) aspects.