On the eve of independence on the 15 August, 1947, Indian economy exhibited low level of economic growth. The policies followed by the British in India during their rule after the victory at The Battle of Plassey,1757, was that of a feeder economy with the basic purpose of draining the wealth of India, by using its physical and human resources as raw materials for industrial requirements back in England. The British rule in India followed the policy of protection and promotion for the interest of Britain, and in the process led to the underdevelopment of India.
India was a prosperous country with renowned handicraft products demanded all over the world. These handicrafts were mainly that of silk and cotton, metal-works and precious stone works. The Daccai Muslin or most famously known as the Malmal Shahi was the finest cotton fabric which gained worldwide fame.
According to the British economist Angus Maddison, before the advent of the British in 1700, the share of India in world economy was 24.4% which was reduced to just 4.2% in 1950. The systematic exploitation of resources of India for its own interest by Britain led to the decay of traditional handicrafts and domestic industries of India which led to poverty and underdevelopment of India.
The British were not interested in estimating the national as well as per capita incomes of India. They did not take any significant step towards initiation of estimating it. But few individual works of Dadabhai Naoroji, William Digby, Findlay Shirras, Dr. V.K.R.V. Rao and R.C. Desai are worth mentioning. But their works were conflicting with each other and thus no clear figure could be derived at.
It was Professor V.K.R.V. Rao whose estimation of national and per capita incomes of India was most significant. The first scientific estimation of national and per capita incomes was given by him.
QUIZ
Please give answers of the following questions in the comment section below
1. Who was the Nawab of Bengal defeated by the English East India Company in the Battle of Plassey in 1757?
2. Who estimated the national income of India for the first time? Name the work (book) where this estimation appeared.
3. According to Prof. V.K.R.V. Rao what was the percentage growth of national income and per capita income of India in the first half of the twentieth century?
