PPT: Evolution of the Indian Economy | Indian Economy for UPSC CSE PDF Download

 Page 1


Evolution of the 
Indian Economy
Page 2


Evolution of the 
Indian Economy
Economic Condition of 
India at Independence
In 1947, India's economy was in chaos at the time of independence.
After centuries of colonial rule, India faced numerous challenges.
India embarked on its journey as a sovereign nation.
This presentation will explore the economic landscape of India at 
independence.
The presentation will also discuss the key decisions made by its leaders, and 
the path forward in shaping the nation's economic future.
Page 3


Evolution of the 
Indian Economy
Economic Condition of 
India at Independence
In 1947, India's economy was in chaos at the time of independence.
After centuries of colonial rule, India faced numerous challenges.
India embarked on its journey as a sovereign nation.
This presentation will explore the economic landscape of India at 
independence.
The presentation will also discuss the key decisions made by its leaders, and 
the path forward in shaping the nation's economic future.
Colonial Legacy and 
Economic Challenges
1
Colonial Economy
India operated as a typical colonial economy, with its resources 
exploited to benefit the United Kingdom. Both agricultural and 
industrial sectors were poorly structured, with minimal 
government involvement.
2
Drain of Wealth
India faced a one-sided transfer of investment capital to Britain, 
often referred to as the "drain of wealth. " This unfair trade 
severely harmed India's commerce, trade, and its once-thriving 
handloom industry.
3
Stagnation and Poverty
The period before independence was marked by stagnation, 
with little to no improvements in production or productivity. 
Per capita incomes were very low, with ¹18 in 1899 and ¹39.5 
in 1895, highlighting the severe poverty faced by the Indian 
people.
Page 4


Evolution of the 
Indian Economy
Economic Condition of 
India at Independence
In 1947, India's economy was in chaos at the time of independence.
After centuries of colonial rule, India faced numerous challenges.
India embarked on its journey as a sovereign nation.
This presentation will explore the economic landscape of India at 
independence.
The presentation will also discuss the key decisions made by its leaders, and 
the path forward in shaping the nation's economic future.
Colonial Legacy and 
Economic Challenges
1
Colonial Economy
India operated as a typical colonial economy, with its resources 
exploited to benefit the United Kingdom. Both agricultural and 
industrial sectors were poorly structured, with minimal 
government involvement.
2
Drain of Wealth
India faced a one-sided transfer of investment capital to Britain, 
often referred to as the "drain of wealth. " This unfair trade 
severely harmed India's commerce, trade, and its once-thriving 
handloom industry.
3
Stagnation and Poverty
The period before independence was marked by stagnation, 
with little to no improvements in production or productivity. 
Per capita incomes were very low, with ¹18 in 1899 and ¹39.5 
in 1895, highlighting the severe poverty faced by the Indian 
people.
Debate: Agriculture vs. Industry as Prime 
Moving Force
Agriculture Potential
India had fertile land and a ready 
workforce that could be employed in 
agriculture. Focusing on agriculture 
could have ensured basic needs, 
laying the groundwork for further 
development.
Industrial Challenges
India faced challenges in 
industrialization, including lack of 
infrastructure, capital, technology, 
and skilled workers. These factors 
made rapid industrialization difficult.
Nehruvian Economics
Nehru's vision prioritized industry 
over Gandhian ideals of rural 
development. This decision, known as 
Nehruvian Economics, shaped India's 
early economic policies and remains 
debated.
Page 5


Evolution of the 
Indian Economy
Economic Condition of 
India at Independence
In 1947, India's economy was in chaos at the time of independence.
After centuries of colonial rule, India faced numerous challenges.
India embarked on its journey as a sovereign nation.
This presentation will explore the economic landscape of India at 
independence.
The presentation will also discuss the key decisions made by its leaders, and 
the path forward in shaping the nation's economic future.
Colonial Legacy and 
Economic Challenges
1
Colonial Economy
India operated as a typical colonial economy, with its resources 
exploited to benefit the United Kingdom. Both agricultural and 
industrial sectors were poorly structured, with minimal 
government involvement.
2
Drain of Wealth
India faced a one-sided transfer of investment capital to Britain, 
often referred to as the "drain of wealth. " This unfair trade 
severely harmed India's commerce, trade, and its once-thriving 
handloom industry.
3
Stagnation and Poverty
The period before independence was marked by stagnation, 
with little to no improvements in production or productivity. 
Per capita incomes were very low, with ¹18 in 1899 and ¹39.5 
in 1895, highlighting the severe poverty faced by the Indian 
people.
Debate: Agriculture vs. Industry as Prime 
Moving Force
Agriculture Potential
India had fertile land and a ready 
workforce that could be employed in 
agriculture. Focusing on agriculture 
could have ensured basic needs, 
laying the groundwork for further 
development.
Industrial Challenges
India faced challenges in 
industrialization, including lack of 
infrastructure, capital, technology, 
and skilled workers. These factors 
made rapid industrialization difficult.
Nehruvian Economics
Nehru's vision prioritized industry 
over Gandhian ideals of rural 
development. This decision, known as 
Nehruvian Economics, shaped India's 
early economic policies and remains 
debated.
Agriculture: The Obvious Choice?
1
2
3
Abundant Resources
India possessed vast cultivable land 
and human resources, making 
agriculture seem like the natural 
choice for the primary sector.
Traditional Methods
Indian agriculture relied heavily on 
traditional tools and technology, 
limiting its productivity and growth 
potential.
Modernization Needs
Modernizing and mechanizing 
agriculture would have been 
challenging without indigenous 
industrial support.