The British came to India as merchants in the middle of the 17th century. After gaining foothold on the coastline, they spread to every corner of the Indian peninsula. They gained political supremacy around the middle of the 18th century. After winning the Battle of Plassey in 1757 and the Battle of Buxer in 1764, they established themselves firmly as the rulers of India and ruled it till 1947 to sub-serve their economic interests. The British rule in India can be divided into two periods: (a) the rule of the East India Company from 1757 to 1858 and (b) the rule of the British Government from 1858 to 1947. The British interests in India were governed by the requirements of the Industrial Revolution which started in Britain in the middle of the 18th century and then spread to other regions of Europe. These were two-fold: (a) to secure raw materials from India for factories in Britain and (b) to ensure permanent market in India for the British manufactures. To fulfil these objectives, they adopted measures which proved disastrous for the Indian economy. This book gives a comprehensive and vivid account of various aspects of the Indian economy during the period 1857 to 1947. It is spread over 30 chapters which have been organized into 5 theme parts. Part I (chapters 1 and 2) is titled Colonial India: Background and Introduction. Apart from providing an overview of colonial India, it also explains the state of affairs of the Indian economy on the eve of Independence in 1947. Part II (chapters 3 to 5) is titled Macroeconomic Trends. It deals with discussion on national income estimates, population trends and characteristics, and occupational structure. Part III (chapters 6 to 14) is titled Agriculture, Forests, and Famines. It is devoted to description of agrarian structure and land relations, agricultural markets and institutions, agricultural credit, agricultural commerce, agricultural technology, irrigation development, productivity of agriculture, forest policy and legislations, and famines in India. Part IV (chapters 15 to 22) is titled Railways, Industry, Infrastructure, and Labour. It covers the following topics: Growth of railways, de-industrialization debate, evolution of entrepreneurship, industrial structure, industrialization in the inter-war period, constraints to industrial breakthrough, infrastructure development, and labour laws and industrial relations. Part V (chapters 23 to 30) is titled Economy and the State. It delves into imperial priorities and the Indian economy, drain of Indian wealth, international trade during British rule, capital flows in colonial India, banking and finance, insurance business, tax structure, and evolution of fiscal federalism. CONTENTS Part I: Colonial India: Background and Introduction 1. Overview of Colonial India 1.1 Nature of Indian Economy at the Start of British Rule 1.2 Agricultural Sector 1.3 Occurrence of Famines and Scarcities 1.4 Decline of Handicrafts 1.5 Co-operative Movement 1.6 Regional Inequalities 1.7 Labour and Employment 1.8 Science and Technology 1.9 Public Health and Well-being 1.10 Social Security and Welfare 1.11 Status of Women 1.12 Thinking on Economic Planning 2. Indian Economy at the Time of Independence 2.1 Partition and the Aftermath 2.2 The Partition Council 2.3 Inflationary Trends 2.4 Food Crisis 2.5 Fiscal Situation 2.6 Depletion of Sterling Balances 2.7 Healthcare Services Part II: Macroeconomic Trends 3. National Income Estimates 3.1 National Income Defined 3.2 Importance of National Income Statistics 3.3 Methods of Measuring National Income 3.4 Pre-1947 Estimates of National Income of India 3.5 Limitations of National Income Estimates 4. Population Trends and Characteristics 4.1 History of Population Census 4.2 Population Estimates Prior to 1881 4.3 Pre-1921 Demographic Trends 4.4 Post-1921 Demographic Trends 4.5 Trends in Birth-rate and Death-rate 4.6 Urban-Rural Population 4.7 Life Expectancy 4.8 Purpose of Census Exercises 4.9 Main Outcomes of Census Operations during British Rule 4.10 Effects of Censuses 5. Occupational Structure 5.1 Labour Force and Labour Force Participation 5.2 Occupational Classification and Occupational Structure 5.3 Features of Colonial Occupational Structure Part III: Agriculture, Forests, and Famines 6. Agrarian Structure and Land Relations 6.1 Early Phase of British Rule 6.2 Discriminating Protection and Agriculture 6.3 Royal Commission on Agriculture (RCA) 6.4 Great Economic Depression 6.5 Government of India Act, 1935 and Agriculture 6.6 Second World War and the Grow More Food (GMF) Campaign 6.7 Statement on Agriculture and Food Policy in India, 1946 6.8 Land Relations 6.9 Zamindari System 6.10 Ryotwari System 6.11 Mahalwari System 6.12 Land Rents 6.13 Assessment of Land Relations 6.14 Partition and the Aftermath 7. Agricultural Markets and Institutions 7.1 Significance of Agricultural Marketing 7.2 Systems of Agricultural Marketing during British Rule 7.3 Defects of Agricultural Marketing System 7.4 Role of Co-operatives in Marketing 7.5 Observations of Royal Commission on Agriculture in India, 1928 7.6 Agricultural Produce (Grading and Marketing) Act, 1937 8. Agricultural Credit 8.1 Credit Needs of the Indian Farmers 8.2 Role of Moneylenders 8.3 Co-operative Credit Societies Act, 1904 8.4 Maclagen Committee on Co-operation (1914) 8.5 Recommendations of Royal Commission on Agriculture (RCA), 1928 8.6 Co-operative Planning Committee (1945) 9. Agricultural Commerce 9.1 Cotton and Textiles 9.2 Jute and Jute Manufactures 9.3 Wheat and Barley 9.4 Opium 9.5 Indigo 9.6 Separation of Burma and the Second World War 10. Agricultural Technology 10.1 Agricultural Implements 10.2 Manures and Fertilizers 10.3 Improved Seeds 10.4 Agricultural Research 10.5 Agricultural Education 11. Irrigation Development 11.1 Land-Water Relationship 11.2 Early Efforts for Irrigation Development 11.3 Reorganization of Irrigation Set-up 11.4 Improvement in Irrigation Facilities 11.5 Post-Partition Scenario 12. Productivity of Agriculture 12.1 Early Efforts to Increase Agricultural Productivity 12.2 Research Efforts to Increase Productivity 12.3 Productivity Trends: 1930-1947 12.4 Productivity Stagnation during Second World War 13. Forest Policy and Legislations 13.1 Classification of Forests 13.2 National Forest Policy (NFP), 1894 13.3 Forest Legislations in India 13.4 Government of India Act, 1935 and Forests 14. Famines in India 14.1 Occurrence of Famines and Scarcities 14.2 Bengal Famine of 1943 14.3 Causes of Famines 14.4 Famines and the Railways 14.5 Consequences of Famines 14.6 Policy Response of the Colonial Government Part IV: Railways, Industry, Infrastructure, and Labour 15. Growth of Railways 15.1 Introduction of Railways 15.2 Milestones in the Development of Indian Railways 15.3 Mixed Blessing 15.4 Great Depression and the Second World War 15.5 Partition and Aftermath 16. De-industrialization Debate 16.1 Pre-colonial Period 16.2 Colonial Rule and Structural Shift in the Indian Economy 16.3 Causes of De-industrialization 16.4 Consequences of De-industrialization 17. Evolution of Entrepreneurship 17.1 Entrepreneur and Entrepreneurship 17.2 Early History of Entrepreneurial Class in India 17.3 Role of Ethnic Minorities 17.4 Non-trading Communities as Entrepreneurs 17.5 Factors Responsible for Poor Entrepreneurial Initiatives 18. Industrial Structure 18.1 Establishment of Modern Factory System 18.2 Swadeshi Movement 18.3 First World War (1914-18) 18.4 Inter-War Period 18.5 Second World War (1939-45) 18.6 Post-War Period 18.7 Scientific and Industrial Research 18.8 Khadi and Village Industries (KVI) 18.9 Critical Appraisal 19. Industrialization in the Inter-War Period 19.1 Industrial and Fiscal Policies after First World War 19.2 Indian Fiscal Commission, 1922 19.3 Policy of Discriminating Protection 19.4 Rules of Excise Taxation 19.5 Growth of Business Houses 19.6 Great Depression of 1930s 19.7 Critical Assessment 20. Constraints to Industrial Breakthrough 20.1 Establishment and Growth of Modern Industry in India 20.2 Nature of Factor Endowment 20.3 Absence of Government Initiatives and Support 20.4 Laissez Faire Economic Policy 20.5 Lack of Heavy and Key Industries 20.6 Racial Discrimination 20.7 Unbalanced Regional Development 20.8 Colonial Commercial Policy 21. Infrastructure Development 21.1 Transport Development 21.2 Telecommunications and Broadcasting 21.3 Energy Sources 21.4 Irrigation 22. Labour Laws and Industrial Relations 22.1 Labour Laws in India 22.2 Industrial Relations 22.3 Trade Union Movement 22.4 Royal Commission on Labour (RCL), 1931 22.5 Social Security Part V: Economy and the State 23. Imperial Priorities and the Indian Economy 23.1 Laissez Faire Policy to Make India an Open Economy 23.2 India as a Source of Raw Material 23.3 India as a Market for British Manufactured Goods 23.4 India as a Destination for British Investments 23.5 India as a Source of Payments to Britain 24. Drain of Indian Wealth 24.1 Channels of Drain of Wealth 24.2 Reasons for the Drain of Wealth 24.3 Consequences of Drain of Wealth 24.4 Measures Suggested to Reduce the Drain 25. International Trade during British Rule 25.1 India’s Foreign Trade in Ancient Times 25.2 Favourable Balance of Trade during 17th Century 25.3 The Period 1857-1900 25.4 First World War 25.5 Great Depression 25.6 Second World War 25.7 Post-War Period 26. Capital Flows in Colonial India 26.1 Early Colonial Policy 26.2 Pre-First World War 26.3 Inter-War Period 26.4 Managing Agency System and the Flow of Capital 27. Banking and Finance 27.1 Financial Administration 27.2 Commercial Banks 27.3 Money Market 27.4 Payment Systems 27.5 Reserve Bank of India (RBI) 28. Insurance Business 28.1 Insurance: A Brief Introduction 28.2 Life Insurance Business 28.3 General Insurance Business 28.4 Reinsurance Business 28.5 Tariff Advisory Committee (TAC) 29. Tax Structure 29.1 Income Tax 29.2 Excise Duties 29.3 Customs Duties 29.4 Sales Tax 29.5 Structure of Government Tax Revenue 30. Evolution of Fiscal Federalism 30.1 Federalism and Fiscal Federalism 30.2 Mayo Scheme, 1870 30.3 Government of India Act, 1919 30.4 Indian Taxation Enquiry Committee, 1924-25 30.5 Indian Statutory Commission, 1930 30.6 Peel Committee I, 1931 30.7 Peel Committee II, 1932 30.8 White Paper on Indian Constitutional Reforms, 1931 30.9 Joint Parliamentary Committee on Indian Constitutional Reforms, 1934 30.10 Government of India Act, 1935 30.11 Post-Partition Financial Adjustments Bibliography Index