ECONOMICS HISTORY OF INDIA (1857-1947) BRITISH TIME PERIOD

INDIAN ECONOMICS HISTORY :

India became a British colony following the 1857 uprising.British East India Company was set up to dominate India through its clever use of political strategy, military force. In 1858 India became a colony of the British Empire. Under the British rule, India suffered poverty, famine and lack of freedom which ultimately led to the Indian struggle for independence. The first Module therefore gives an overview of the Indian economy prior during British rule.

INDIA
INDIA

British period & Indian economy:

The Economy of India during the colonial era describes the economy of India during the years of the ‘British Raj’ from 1750- 1947. During this period, the Indian economy’s share of the world economy declined from 22% to 1-3%.

India in the pre colonial time had a stable ,efficient economy. There was adequate agricultural, trade – vast handicraft industries. The landowners were not landlords they only had the right to collect the taxes from the workers. India had large trade both within countries of Asian and Europe. There was a balance in imports and exports, the items imported in India were dried fruits, wool, dates , rosewater from Persian gulf; gold, coffee, honey from Arabia; silk, tea, sugar from China; paper, iron, copper, from Europe.

Structure of villages and town

Indian Economy in the pre – British period consisted of two divisions, namely a) Isolated & self-sustaining villages b) Towns which took care of Administration, Commerce , Handicrafts. The means of transport & communication were highly underdeveloped as the size of market was small.

  • Cobblers
  • Weavers
  • Goldsmiths
  • Carpenters
  • Potters
  • Oil Pressers
  • Washer men
  • Barber
  • Surgeons

The structure of Villages 

Three distinct classes existed in villages that were;Agriculturist; Hand–owning and Tenants.

Labor & capital needed was supplied by producer themselves out of their saving or village landlord or village money lenders. Credit agencies gave credit at exorbitant rates of interest. Only source of credit for peasants & artisans were money lenders and the peasants were forced to depend on the money lenders. Artisans & menials were mere servants of the village

Economic Consequences of British Conquest :

The British  rule can be divided into particular period of time; first the rule of East India Company ranging from 1757 to 1858.Second was the rule of the British government in India from 1858 to 1947. British conquest started in 1757 with the battle of Plassey and completed in 1858, during this period the British changed the techniques of production. The industrial revolution helped the British to sell machine made goods give great competition to Indian handicrafts. The British conquests led to break down of the village community partly by introduction of new land revenue system by the process of commercialization of agriculture

Impact of colonial rule of British on India agriculture

Agriculture was the one of essential and main stay of Indian economy. About 80% people were used to cultivate either as principal or secondary occupation. About 70% of the national income used to came from this agriculture side. Agriculture productions were mainly food grain and other crops such as oil seed, sugar cane used for domestic consumption, fiber crops and many more.

Process of Industrial Transition, Colonialism and Modernization

Tariff protection to Indian industries–  In 1923 the government  accepted the recommendations of the first fiscal commission  to gave protection to selected Indian industries against foreign competition. Between 1924 and 1939 several major industries were given protection  the government prominent among them being iron and steel industry , cotton mills , jute , sugar , paper ,pulp industry , matches etc . Indian industrialists took advantage of the policy of protection extended  the government ,developed the protected industries rapidly. They were able to capture the entire Indian market and eliminate foreign competition altogether in important fields.

INDIA

Description of chief executive natural resources of Myanmar

LAND OF GOLD

Chief Natural resources of Myanmar

Since ancient times, the land known today as Myanmar has been famous for its wealth in natural resources of all kinds. Today, Myanmar’s natural resources include oil and gas, various minerals, precious stones and gems, timber and forest products, hydropower potential, etc. Of these, natural gas, rubies, jade, and timber logs are the most valuable and currently provide a substantial proportion of national income. To date, there has been a very low-level of systematic exploration of Myanmar’s natural resources due to lack of modern survey techniques.     I

According to official data, recent foreign direct investment in Myanmar has been concentrated in the oil/gas and hydro power sectors, with mining coming in third position by value. Investment commitments made in the 2010/11 financial year were approximately 30 times the rate of commitments made on average for the previous 22 years.

NEIGHBORING COUNTRY MYANMAR

The main investors by country were Myanmar’s neighbors China (including Hong Kong) and Thailand, followed by South Korea, Singapore, and others. While the vast majority of people in the national workforce are subsistence farmers, the gas industry and the precious/semi-precious stone-mining industries have provided the largest incomes, with gas earning of $3.6 billion for 2011–2012 and precious stones earning of approximately $3.4 billion in 2010 from auction sales.
Despite a shortage of natural gas for the domestic market, most of the natural gas is exported. Currently all gas exports go to Thailand. Yet, a new 1,800-kilometer-long pipeline – which will cross the whole country, from Kyauk Phyu in Rakhine state to Kunming, China – will commence later in 2013

DESCRIPTION / ECONOMICAL CONDITION  MYANMAR

Myanmar is geologically very rich, and mining is significant as a large-scale industry and also in small-scale artisanal forms. Mineral occurrences cover all sectors, including base metals (gold, copper, silver, lead, zinc, tin, antimony, iron, etc.), industrial minerals, energy sources (mainly coal), gems (jade, rubies, sapphires, etc.), as well as “rare earth” minerals. Myanmar is perhaps best known for gold, jade, rubies, sapphires. It is estimated that in the past, 90 percent of the world’s rubies came from Myanmar. The state is currently aiming to control and manage all aspects of production and sale of jade and gems, but in this sector, as well as in the gold sector, large informal and illegal industries exist.

 


Despite being blessed with an abundance of natural resources, Myanmar’s citizens are among the poorest in Asia and lag behind their ASEAN neighbors in all aspects of human development. Myanmar’s natural resources were managed in unsustainable and transparent ways during decades of military rule and economic mismanagement. Lack of transparency in the past has raised many questions about potential misappropriation. Revenues were used for state needs, among them being military expenses to ensure the military’s control. While natural resources were being sold to neighboring countries, the local population was left empty-handed.

MAJOR PRODUCTION  MYANMAR  

 Opium production in Myanmar has historically been a major contributor to the county’s gross domestic product (GDP). Burma is the world’s second largest producer of opium after Afghanistan, producing some 25% of the world’s opium, and forms part of the Golden Triangle. The opium industry was a monopoly during colonial times and has since been illegally operated by corrupt officials in the Burmese military and rebel fighters, primarily as the basis for heroin manufacture.

 


Production is mainly concentrated in the Shan -,Kachin states. Due to poverty, opium production is attractive to impoverished farmers as the financial return from poppy is 17 times more than that of rice. The yield during 2012 was 690 tons, valued at US $359 million.

Economic specialists indicate that recent trends in growth have the potential to increase the gap between the rich and the poor in the country, empowering criminal rackets at the expense of democracy

natural resource

 

INDIAN RAILWAYS AND ECONOMIC CHANGE

 Evolution Of Indian Railways

The origin of Indian railways was primarily done to facilitate the commercial interest of the British. Indian railways, the largest rail network in Asia and the world’s second largest under one management are also credited with having a multi gauge and multi traction system. The Indian Railways have been a great integrating force for more than 150 years. Indian Railways is known to be the largest railway network in Asia.

History of Indian railway:

The introduction of a rail system, transformed the whole history of India. This innovative plan was first proposed in 1832; however no auxiliary actions were taken for over a decade. In the year 1844, private entrepreneurs were allowed to launch a rail system by Lord Hardinge, who was the Governor-General of India. By the year 1845, two companies were formed and the East India Company was requested to support them in the matter.

The credit from the UK investors led to the hasty construction of a rail system over the next few years. On 22nd Dec’ 1851, the first train came on the track to carry the construction material at Rorkee in India. With a passage of one and a half years, the first passenger train service was introduced between Bori Bunder, Bombay and Thana on the providential date 16th Apr’ 1853. This rail track covered a distance of 34 km (21 miles).On the occasion of India’s Independence in 1947, the maximum share of the railways went under the terrain of Pakistan.  The existing rail networks were forfeited for zones in 1951 and 6 zones were formed in 1952. In 1985, the diesel and electric locomotives took the place of steam locomotives. In 1995, the whole railway reservation system was rationalized with computerization.

 Development of Indian Railways — Three Phases

 Initial Phase(1853-1880) 

The year 1853 was of great importance in the history of India. On 16 April 1853 the first passenger train was introduced between Bombay and Thane covering a distance of 34 kilometers formally heralding the birth of railways in India. Robert Mint Land Breton was responsible for the expansion of railways. By 1880 the network had route mileage of about 14500 kilometers mostly radiating from major ports like Bombay and Calcutta.

Second Phase(1880-1915) 

The second phase saw the introduction of some competition among the major lines in north India i.e. Delhi and Bombay, Punjab and Karachi. With the completion of these lines as well as the main lines serving Calcutta there was a struggle to gain control of shipments for the export trade because Karachi and Bombay had very poor facilities. Calcutta was much farther from Europe but it was able to compete because it held a monopoly on coal and could force up its price and consequently the costs of operation of other lines.All India average prices of charges for freight declined to 50% between 1881 and 1916 due to competition between the northern lines. This was further declined to 84% between 1881 and 1919

Third Phase(1916-1947)

In this period government acted to prevent the further falling of rates by establishing a central clearing house to foster cooperation and reduce competition, key lines were permitted and encouraged to form mergers. In 1886 there was amalgamation of Delhi railways with Punjab, the Indus valley and the Sind Sagar railways.

The expansion of branch lines which the government of India promoted also reduced competition. By 1916, through mergers growth of branch lines and agreement between the firms they began to stabilize.Company practiced price discrimination in order to maximize profit. Block rates were instituted which consisted of premiums charged to shippers who started their goods on one line and later had them transferred to another. This encouraged the use of a single line. Companies charged lower rates to and from ports than for comparable inland distances. These all things had critical effects on the economy.

 Indian Railways and Its Effect on Indian Economy

Railways were the most important infrastructure development in India between 1850 & 1947. They inter-connected all dimensions of Indian society. In terms of the economy, railways played a major role in integrating markets and increasing trade. Domestic -international economic trends shaped the pace of development of railway. Indian railways not only contributed towards economic development of Indian economy but brought about price stability and relief from famine damages among many Indian States. Another major economic change that was largely debated by economists with the introduction of Indian railways was the concept of ‘social-saving’. 

Contributing to Modern Market Economy

Prior to the introduction of railways transportation except in the Indus and Ganges valleys and in the coastal regions was costly undependable and difficult.  It provided rapid, reliable and cost-effective bulk transportation to the energy sector, to move coal from the coal fields to power plants and petroleum products from refineries to consumption centers. It linked places, enabling large-scale, rapid and low-cost movement of people across the length and breadth of the country. In the process, the Indian Railways became a symbol of national integration and a strategic instrument for enhancing trade and market integration.

 Contributing to Economic development

The Indian Railways contributed to India’s economic development and accounted for about one per cent of the GNP. Not only did it become the backbone of freight needs of the core sector. It also accounted for six per cent of the total employment in the organized sector directly and an additional 2.5 per cent indirectly through its dependent organizations. The Indian Railways, with nearly 63,000 route kilometers fulfilled the country’s transport needs, particularly, in respect of long-distance passenger , goods traffic. Today, freight trains carry nearly 1.2 million tons of originating goods and 7,500 passenger trains carry nearly 12 million passengers .


 

 

5 Most Richest Country In The World

The richest countries in the world measured in terms of GDP( Gross Domestic Product).  GDP is the total markets value of all goods and services produced in a country in year. The richest countries are fully developed and the citizens of that country has standard of living like need of Human rights,medical facilities , education,Proper Drinking water ,Equivalence  atmosphere between political parties. Top 5 richest country in the world -Qatar : Luxembourg:  Singapore: Norway:Kuwait

 

 

  Qatar : Arab nation: GDP  per capita  ($129,076,88)

Qatar  Officially  the state of Qatar is a sovereign country located in the South – west Asia..Capital of Qatar is a Doha . In Qatar Qatari Riyal use as a currency. State of Qatar is a high income economy and has per capita  income in the world .The worlds 3 largest oil and natural gas  reverses accounts for 70%of its government revenue , 60%of its GDP ,85% of its export earning .It  has a fame of having standard of living with lowest tax in the world for its citizens . The country has vast land making it an attraction for investment. Income resources –Crude oil production and refining, Ammonia fertilizers ,steel plants,Bars , commercial ship repair .Qatar,s proved reserves of natural gas.GDP- 13% .Qatar is the richest country in the world and home to the 2022 FIFA  CUP,the first Arab nation to ever hold this role.

 

 

Luxembourg; Europe Country  GDP per  Capita  ($100,991)

Luxembourg is a land locked country in Western Europe .Officially called THE Grand  Douchy  Of L Luxembourg .Capital of   Luxembourg is  Luxembourg City.Euro is main currency of Luxembourg. Luxembourg with just half a million population rank number second  in list of richest country has per capita is ($100,991) which is 9 times of the world average . The nation  is the 2 largest investment fund centre ,high-income market with low inflation and high innovation .Luxembourg known as “ Green heart of Europe ”. Financial sector ,Dynamic industrial, steel , Banking the backbone of this strong economy.Banking in L Luxembourg is a largest of its with an asset of base over $1.24 trillenalone. Income resource – banking ,Iron steel  Telecommunications industry ,Agricultural.28 %of GDP  remunerated for the decline in steel.Average GDP IS 0.9%.Due to attractive corporate tax laws ideal place for headquarters of many international companies.

 

 

Singapore: Asian Country GDP  per capita ($85,00

Singapore is a modern city-state located in South East Asia.Officially known as The Republic of Singapore.The capital city of Singapore is the city of Singapore city.Singapore known for as the Lion city, The Red  Dot ,The Garden city .Currency of Singapore is Singapore Dollar.Singapore ,one of the cleanest cities in the world with best air port in the world.Tourism is the main source of revenue for this country its boost its GDP.Singapore one of the highest business earing Tycoons countries in the world .The country relevant to invest  as it has attractive investment climate ,stable political that makes per capita income 3 highest country in world. Income resource – Biotechnolgy ,Banking ,Exports Electronics ,Energy.Singapore is  also shipping and transportation hub for Asia.Tourism spot like  Woodlands ,Tengeh Reservoir as numerous  visit all over world.It is a second largest busiest port in the world .of It is a small country with 5.5 Million  population a huge percentage Buddhism followed.

 

 

Norway: Europe country GDP per capita ($99,500)

Norway is a sovereign country located in North  of Europe .officially is known as The  Kindom of Norway. Capital of Norway is Oslo.Currency of Norway is known as Norwagian Krone.Commonly known as Land of rising of sun .Norway has been in the list of richest country because of its well-developed economical industry .Norway  4 richest country in the world ,3 biggest exporter of natural gas,7 largest oil exports in the world.It has created  multiple jobs,provide educations and medical facilities to the individuals.  Norway is one of largest and most influential financial markets. Income resources Tourism, exporter of Natural gases, Minerals,Sea food .Today GDP Stands ($95,000) fellow independent monetary policy.

 

 

Kuwait:Asia country GDP per capita  ($73,298)

Kuwait is an Arab country located in the Western region of Asia. Kuwait officially known as The State of Kuwait currency is The Kuwaiti dinar is the highest –valued currency unit  in the world . Capital of Kuwait is Kuwait city. One of the 5 richest country in world( $73,298).It has petroleum –based economy as 6 largest petroleum reveres account for half of GDP .Kuwait  crude oil reserve which ate about 102 billion barress.It gives best job chance to individual of whole world.Income resources – Toursim ,water desalination ,Oil reserves 95% export revenues and government income .In early days little diversity in economics due to positive fiscal situations.It is also ruled by a stable monarchial government which conduct all  the country affairs .