Agriculture Sector on the Eve of Independence

Last Updated : 06 Apr, 2023

Before British rule, India had an independent economy. Agriculture was the major source of
income for the public, and the country’s economy was identified by different types of
manufacturing industries. India was globally known for its handicraft industries, cotton andamp;
silk textiles, and their phenomenal work with metals and precious stonework, etc. These items
Accountancy Business Studies Economics Organisational Behaviour Human Resource Management Entrepreneurship Marketing
enjoyed a global market based on recognition of the excellent quality of materials used and the
high standards of craftsmanship found in all imports from India.

Agricultural Sector
Indian economy is an agriculture-based economy. This is clear from the fact that the national
income of India comprises 70% of the income generated from agriculture. Before independence,
95% of the economy was based on agriculture and the income was generated from agriculture.
Besides, around 85% of the population was living in small-town or villages, and the only means
of subsistence was agriculture. When talking about agriculture, the condition of the Indian
economy, on the eve of independence was demoralizing. Agriculture, even after being the most
important sector, was facing economic degradation and stagnation in the economy.

Agricultural Sector of India – Causes of Stagnation

There are various causes for stagnation in India’s agriculture sector during the colonial period.
Some of these are as follows:

1. Zamindari System

The new system of land tenure introduced by the Britishers had three forms: Mahalwari System,
Zamindari System and Ryotwari System. One of the major reasons behind the cause of the
stagnation of the Indian agricultural sector was the Zamindari System. The two classes under
Zamindari System are Zamindar or landowner and landless cultivators. Zamindars were
recognised as the permanent owners of the soil. This agricultural framework was chiefly
practised in Bengal, which was the capital of India under British rule. According to this system,
most of the profits went to Zamindars rather than cultivators. The Zamindars used to exploit the
cultivators by charging high revenue from the agriculturalists, which left the cultivators with
insufficient food. They couldn’t even get food for their sustenance. Besides, the Zamindars used
to force the cultivators to work on their farms.
2. Forced Commercialization

Despite the fact that there was a shortage of resources, the British rule demanded broad
commercialization to get more profits. Commercialization of agriculture means producing
agricultural crops with the aim of selling them instead of self-consumption. The British rulers
wanted to make this industry advance and go through ‘cultivation for sale’ from the orthodox
approaches of ‘cultivation for self’.
In India, where most of the crops were produced for self-consumption, they were then sent to
markets for selling. The Britishers made farmers cultivate commercial crops, like Indigo to boost
their profits. Undoubtedly indigo is an ideal crop for the commercialized agricultural sector. It
proved to be more harmful to India as it damaged the soil fertility to large extent. Also, the
Britishers offered higher prices to farmers if they produce cash crops instead of food crops as the
cash crops were used by British Industries as raw materials. The increase in the rate of
production of more cash crops and less food crops led to various issues in the Indian economy,
including frequent famines.

3. Partition

India’s partition with Pakistan & Bangladesh resulted in a food crisis all over India as various
crop-yielding lands were divided. The partition also created a huge shortage problem of raw
materials for the textile mills of Ahmedabad and Bombay, and the jute mills of Calcutta. Besides,
areas of West Punjab and Sindh that were rich in food production went to Pakistan, resulting in a
food crisis in India.

4. Lack of Irrigation Facilities and Technology

During British rule, the irrigation facilities and technology of India were not good, and the
Britishers did not care about these things. The lack of proper irrigation facilities and
technological upgrades reduced the productivity and production of crops in India. These
problems forced cultivators or agriculturalists to live in misery.

Features of Indian Agriculture on the Eve of Independence

The main features of India’s Agriculture Sector on the Eve of Independence can be summed up
as follows:

1. During British rule, agriculture was the major source of India’s livelihood. Around 85% of
India’s population derived livelihood and was dependent on agriculture.
2. On the eve of Independence, the agricultural sector of India also experienced deterioration
and stagnation.
3. The Britishers introduced a new land tenure system, which included Zamindari System, under
which the Zamindars used to exploit the cultivators. This land tenure system was the major
cause of stagnation in the agricultural sector of India.
 4. The production of agriculture deteriorated also because of the lack of irrigation facilities in
India. The farmers were forced to grow crops without proper irrigation facilities resulting in
low production of crops.
5. Another reason behind the deterioration of agricultural sector was the lack of technological
upgradation. The farmers were forced to use old methods for the production of crops, which
slowed down their production speed and deteriorated the quality of produce.
6. Earlier India used to be an agricultural economy; but, during British rule, it was forced to enter
into the production of raw materials for British Industries. This commercialization of
agriculture led to stagnation at a huge rate.
7. The partition of India from Pakistan and Bangladesh also had an adverse effect on the
agricultural production of India.

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