Indian Economy on The Eve of Independence On the eve of India's independence in 1947, the Indian economy was predominantly agrarian, with agriculture contributing a significant portion to the national income and employing most of the population. However, it was also characterized by a complex mix of colonial exploitation, poverty, and limited industrialization. Key Features of the Indian Economy Before Independence: Agriculture Dominance: Agriculture was the backbone of the economy, employing about 70-80% of the workforce. Landholdings were generally small, and farmers faced various challenges such as tenancy issues, lack of credit, and dependence on monsoons. Colonial Legacy: The British colonial rule had left a deep imprint on India's economy, with policies often designed to benefit British interests. Industries were concentrated in a few urban centres, mainly for processing raw materials for export. Limited Industrialization: India had a nascent industrial sector, mostly comprising small-scale industries and cottage industries. Major industries like textiles, jute, and steel were in existence but were largely underdeveloped compared to their potential. Trade and Commerce: India's trade was dominated by British interests, with raw materials being exported to Britain and finished goods imported back into India. Infrastructure such as railways and ports primarily served the purpose of facilitating colonial trade. Infrastructure: The infrastructure was inadequate and unequally developed across regions. Railways, though extensive, were largely geared towards transporting raw materials for export rather than promoting industrial growth. Poverty and Social Issues: Poverty was widespread, with a large population living below the poverty line. Social issues such as caste-based discrimination and limited access to education and healthcare persisted. Political Unrest: The economy was affected by political movements and unrest against British rule, which often disrupted economic activities. Challenges on the Eve of Independence: Economic Dependence: India was economically dependent on Britain, both in terms of trade and technology. Infrastructure Deficit: Limited infrastructure development hindered economic growth. Social Issues: Poverty, illiteracy, and social inequality posed significant challenges. Industrial Backwardness: The industrial sector was underdeveloped, leading to limited job opportunities outside agriculture. In summary, the Indian economy on the eve of independence was characterized by its agrarian base, colonial exploitation, limited industrialization, and significant social and economic challenges. The period following independence would witness efforts to address these issues through economic planning, industrialization policies, and social reforms aimed at transforming India into a modern nation.