Indian Economy on the Eve of Independence Flashcards

Vocabulary flashcards covering the economic conditions, agriculture, foreign policies, and industrial state of India on the eve of independence as detailed in the lecture notes.

Battle of Plassey

The battle fought in 1757 that laid the foundation of the British Empire in India.

Colonialism

A system of political and social relations between two countries, of which one is the ruler and the other is its colony, where the ruling country determines the economic policies of the dominated country.

Muslin

A cotton fabric of plain weave originating in Bengal, particularly in and around Dhaka.

Daccai Muslin

An exquisite type of cotton textile exported to Europe, the Middle East, and other markets in the 17th and 18th centuries.

Malmal

The finest variety of muslin, also referred to by foreign travellers as malmal shahi or malmal khas, implying it was worn by or fit for royalty.

Per Capita Income Formula

$$\text{Per Capita Income} = \frac{\text{National Income}}{\text{Total Population}}$$

National Income Estimators under Colonial Rule

Individual experts who attempted to estimate India's national and per capita income, including Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao, and R.C. Desai.

Dr. V.K.R.V. Rao's Income Estimates

Estimates of national and per capita incomes during the colonial period that were considered very significant, revealing aggregate real output growth of less than 2% and per capita output growth of 0.5% per year during the first half of the 20th century.

Zamindari System

A land tenure system (also known as Permanent Settlement System) introduced by Lord Cornwallis in 1793 where zamindars were recognized as owners of the land and collected lagaan from actual tillers.

Lagaan

The rent or tax collected from actual tillers of the soil by zamindars under the Zamindari System.

Commercialisation of Agriculture

The production of crops for sale in the market rather than for self-consumption, shifting cultivation from food crops to cash crops like cotton and jute.

Sharecropping

A form of agriculture in which a landowner allows a tenant to use the land in return for a share of the crops produced on their portion of land.

De-industrialisation Motive

The two-fold primary motive of the British rule to obtain raw materials from India at cheap rates for British industries and sell finished British products in the Indian market at higher prices.

Discriminatory Tariff Policy

A colonial policy allowing duty-free export of raw materials from India and duty-free import of British final goods, while imposing heavy duties on the export of Indian handicrafts.

Capital Goods Industry

Industries that produce machine tools which are, in turn, used to produce articles for current consumption.