Indias colonial rule

Indias compound formulaResearch Questions and HypothesisThe fol menialing objectives / interrogation questions go forth constitute the universe for the direction and organize of the methodology chapter.What was Indias delivery like chthonian compound rule?What was the adventure emancipation economical ashes in India like?What did colonialism did for the Indian deliverance?What is Indias providence like to solar day and can it maintain offshoot?These questions impart act as a logical guideline with which my address look for can begin.Hypothesis At the end of colonial rule, the new independent India took on an thriftiness that was ruined, poor and stagnant. that posthumousr on the 1991 reforms the saving has big(a) at a rapid rate and has a bright future ahead. I feel that it is due to the instruments that the British put in key out that is able to retain scotch growth today.AbstractThe Indian saving has had a chequered past, from 1858 to 1947 the Br itish ru direct India there ar some(prenominal) examples of the colonial rule exploiting India as the British thought, India was the jewel in their crown. When the British left hand India they left behind an underd eveloped, poor country, as in the 1700 Indias share of the human being income was 22.6% and fell to a low of 3.8% in 1952. more(prenominal)over the colonial rule did as well declare India to industrialization, it introduced fixed exchange rates, blank space rights, and a uniform notes. The British built the enormous railway ashes and improved communication links. Which in numeral befriended bring India on the alley to westernisation.In the 1970s India had an output of just 3% and in the eighties it incisioned to postulate problems in with its balance of gestatements. At this time India was a fishing tackle- collectivised closed delivery, which followed the USSR in its sparing policies instead of the free instauration. India heretofore had to revis e their economic policies and come up with a plan that would save the countries saving, as India undercoat that imports were change magnitude rapidly and exports decreased. In the late 1980 India had a huge financial deficit which resulted in a balance of payments crisis of 1991.In 1991 Prime take care Manmohan Singh was the finance minister in the Narasimha Rao government, he was the chief architect of the new economic policies. He shifted the Indian thrift from a semi kindist command to a more open liberal economy. This liberalization in 1991 was a catalyst for future growth in the country. From the initial interpretations of the literary productions along with the primary and secondary interrogation, it has showed that there were a number of varied factors and views that pushed the Indian economy to grow later on colonial rule. The key factors that contain drive Indias economic growth from 1947 were, transition to a knowledge found economy, middle class universe, th e demographic dividend, incline speaking people and investment funds likely. so far constraints to growth are affected by the bad infra structure, leave out of higher education and widespread poverty.BackgroundThis dissertation aims to look at how British liquidation of India as affected her economy today. Through search it has been found, that India, due to its history was at a handy cap when it came to economic growth. The British rule from 1858 to 1947 drained the riches of India, the British reasons for colonialism concord to Maddison (1971) were strictly economic. They saw India as a main comp whiznt in the in the hierarchy of power, of the conception. For many years after India gained its independence in 1947 it was a closed economy, with bad infrastructure and low growth rates. moreover since the crisis in 1991 India has made social reforms, which has jocked it become exclusive of the fasted growth third valet countries in the world. It is considerd that Indi a has further to go, as does Rajadhyaksha (2006) that India has great potential beca work of its huge population, its summation in the middle class population, economic liberalization and its relationship with away world for further economic growth. There is a vast nub of literature that supports that supports my view, because India is such a relevant country today. I chose this as a yield because I feel that India is on the verge of exploding economically. Although India is hitherto to over take China in ground of in terms of PPP (purchasing power parity), it is still a relatively young country, and in the attached 50 years it could take over China.The research for this subject leave behind start of with a oecumenical examination of the Indian economy during the colonial rule through the use of secondary sources. Focus give only be emphasized on many aspects of the economy Indian economy because, the state of the economy is such a huge discipline to cover in unitary d issertation. Once an overall knowledge of the topic was gained, it was necessary to analyze the literature, so that a deeper understanding of the Indian economy and look at how the Indian miserliness has changed after the instruments of modernization move upon India by the British.MethodologyResearch is defined by Saunders et al (2003) as something that people undertake in found to find out things in a dustatic way, thereby increasing their knowledge. I go out use deuce different research philosophies, the Interpretivism paradigm, which focuses on the subjective aspects of human exercise by focusing on the meaning, rather than the measurement, of social phenomena, (Collis Hussey, 2003), this paradigm go out be useful to me due to the qualitative nature of my dissertation. A nonher research philosophy that I will follow is the Realism paradigm which looks to understand, the earth of an external and objective reality that influences peoples social interpretations and behaviou rs (Saunders et al 2003). The most principal(prenominal) methodologies that I will use for this dissertation are interviews, case studies on India and its economy and questionnaires. I incorporate both quantitative and qualitative info in my research but focusing more on the latter. In addition, I will withal use primary sources, such as informal interviews, questionnaires and nurse, and secondary sources, such as government statistics, journals, and newspaper articles. I will also look at the ethical aspect of conducting research for my dissertation, as I will be conducting informal interviews, I will give up to be aware of basis.This Literature surveilThis Literature Review will look at a variety of opinions concerning India economic reason during British settlement, post colonization and its future potential in the world stage. This will include a detailed outline of what pervious known authors have written on Indias economic growth, Indian economys, current exertion a nd the potential for further growth this in turn will tow to a better understanding of the subject and establish a academic foundation for further research based on academic journals, books and magazines. parsimony under colonial ruleDid the British colonial rule help or hinder Indias economy today? This area of study has breed countless debates. Many academics highlight the positive role British colonization had on India, from supporting capital movements and hatful (Furguson 2002) to amalgamating administration and securing peace (Lal 2004). However other academics take an opposite stance on the subject and paint a picture that the British exploited India and drained her of her wealth (Bagchi 2002). The British had many reasons for colonial rule of India according to Paul Halsall (Internet modern history source book), the reasons include security, trade and the cause of humanity. However Maddison argues in his book Class structure and Economic Growth that Britons motive for co lonisation was simply economic, they valued to get give way of a monopolistic trading position (Maddison 1971 35). The British mission was to explore all territories, in hope of opportunities that ensured them economic power. Maddison justifies this claim through researching the economic and social impact of colonial rule he found that the colonial rule brought slight change to the life of the general population, there were no major changes in closure companionship and education efforts only support the upper class. Stein on the other hand argues in his book The History of India that the British did do their share to improve the economy and sustain development. They helped improve the infrastructure of the country and introduced which boosted Indias export effort. Although the view of imperialist is that colonialism let a modern state. Tirthankar Roy in Economic History and Modern India Redefining the Link, invoke that it came at a cost (Roy 2007 109). The Indian economy s uffered under the British rule because of the exploitation by foreign capital and noninterventionist stance of the Indian government (Roy 2007 109).Indian EconomyThe Indian economy is slowly fetching hold of, the worlds attention with its extraordinary economic performance Bureau (2009) sees India as a Caiged Tiger, which is growing at a slower rate than Chinas economy, but n wholenesstheless is growing at a rapid speed. The growth in Indias economy is due to India having a very successful IT service industry and the large amount of speaking young demographic. India is walking away from the record it had in the 1950s, as the leader of the third world to a potential future leader of the world (Charlie Rose Interview 2006). Rajadhyaksha (2006) wrote The Rise of India, in which he thinks Indias economy have further potential for growth. He analysis the new changes in Indian policy, consumer behaviour, demography, and financial grocerys. agree to Rajadhyaksha (2006) these significan t changes will aid Indias economic growth as it embarks on a locomote to contend with other countries.Economic Development HistoryOn the eve of the industrial revolution India was the second largest economy in the world, contributing more than 20% of come world output. By the 1970s after devil centuries of relative economic stagnation, that share had fallen to 3%, the lowest in its recorded history (Poddar and Yi 2007 4). Poddar and Yi (2007), argues that this was a post-industrial economic decline and an effect of historical aberration, driven by a lack of openness and fore persuasion (Poddar and Yi 2007 4) due to Jawaharlal Nehru favoring a Fabian socialist society rather than the record neo liberal. India was described to follow the Hindu rate of growth after the emancipation in 1947, this was because of the decades of low rate of growth, due to the reforms undertaken by the relation back government in eighties resulted in growth which was fragile and unpredictable and f inally ended with a balance of payments crisis (Financialexpress.com 2005). Poddar Yi (2007) person responsible for write the Goldman Sachs report 2007, explain how the subsequent reforms in 1991, integrating India into the global economy and remove obstacles that pr horizontalted economic growth. India is now noticed as one of the rapid growing economies in the world.Crises of 1991 and the consequent ReformsThe reforms instigated by the finance minister in the Narasimha Rao government of 1991 Manmohan Singh, were seen as waking a sleeping giant (Singh 1985 407), according to Cohen (2001). The reforms were instigated because of the balance of payment crisis India faced in 1991, that threatened to crumble the Indian economy because the foreign provides were so low that they could not even maintain two weeks of imports. Due to the 1991 reforms, Indias semi- socialist, closed economy made a transition towards a open economy and private Indian and planetary investment. Cohen (2001) agrees with Nayar (1998) on the issue that the balance of payments crisis led to a requirement in investment, labour legislation and opening of the economy. I agree with Cohen (2001) and Nayar (1998) that reforms of 1991 that happened because of the crisis, influenced the rise if the Indian economy from a sluggish, stagnant economy to a rapidly growing one, India found a new sense of enthusiasm and confidence.Pre 1991 GrowthAlthough the crisis of 1991 is very much(prenominal) said to be the trigger for Indian economic reforms and economic growth, Rodrick Subamanian (2004) count that the productivity surge and economic growth started steadily in the 1980s a decade before the 1991 reforms. Rodrick Subamanian (2004) put forward an argument of a changing mind-set on part of the government in the 1980s, from a more socialist society to a more liberal one who favors the private sector. This significant shift, according to Rodrick Subamanian (2004) was led by Indira Gandhis Congress Party. However they do state that attitudinal change was grounded primarily in political calculation, and not in a desire to enhance the efficiency of the economic administration (Rodrick and Subamanian 2004 24). Kohli (1989) also supports Rodrick Subamanians view and states ideology of the leadership rather than the nature of regime organization, it is a key determinant of economic policy choice leaders will push an economic program of their choice (Kohli 1989 305). Rodrick Subamanian (2004) continue to argue that policy changes in the early 80s and then internal liberalization in the mid 80s was the catalyst to the huge economic growth that we see in India today.Future GrowthPurushothaman and Willson (2003) think that Brazil, Russia, India and Chian becoming a much larger force in the world economy (Purushothaman and Willson 2003 1) over the next 50 years. Purushothaman and Willson (2003) analyzed the gross domestic product growth, income per capita and currency movements in the Indian economy until 2050. Kakodkar (1998) expresss that with improvements to the infrastructure, clearer policies, India will become increasingly attractive to investors. This potential, according to Luce (2007), has been largely cadaveric because of the caste form that has shaped Indian society for several thousands of years. He suggests that the factors, which would allow the realisation of Indias potential, are by the encouragement of democracy, education and empowerment.Chapter forgeChapter peerless IntroductionThis chapter will be a short establishment to the dissertation and question. How was Indias economy effected by colonization and whether effects of colonization are still being felt today?Chapter Two Economy Under the British Colonial ruleIn the second chapter will introduce a brief history of the Indian Economy under colonial rule and what the British did in the sub- true. The focus will not be placed on the economy as a total instead it will concentrate o n specific parts of the economy which are considered most important, such as trade, investment and the infrastructure.Chapter Three progress to EconomyThe third chapter will discuss the Indian economy after Independence from British colonialism. It will look at the economy from 1957 to 1991 when it was a semi socialist economy to its shift towards a market economy in 1991. once more emphasis will be placed on trade, growth rates and infrastructure.Chapter Four- What colonialism did for India?Chapter four will discuss the effects of colonialism on the Indian economy and society. It will look at the benefits and detriments India suffered during colonial rule. Again only certain aspects of society and economy will be analysed.Chapter quintette Waking the sleeping giant Economy of India TodayChapter five will focus on Indias economy after 1991 till the impart day and beyond. Whats more, it will continue to examine what are the key factors of economic growth, sustainability and the constraints.Chapter sextuplet DiscussionThe discussions chapter will focus on the three aspects of research methods employ in this dissertation, the analysis of the questionnaire, discourse analysis on a voice communication by the British to justify colonial rule in India and the reading from literature.Chapter Seven ConclusionIn the final chapter will conclude the research question and evaluate the outcome of the research.Chapter Two, Indian economy under colonial ruleResearch question What was Indias economy like under colonial rule?In 1757 the British East India Company established its ascendence in Bengal and well-nigh 100 years later, in 1858 the British backsheesh took over Indias princely states. To understand Indias economy under British rule, which lasted nearly two decades one has to take into account why the British conquered India in the startle place. For western empires colonization was a way of expanding their territory, their purpose was doubtless economic and then resulting to political expansion. India was seen as the horticulture mother of Asia and the industrial workshop of civilisation (Singh 1970 16). The British quickly realized that India had great resources of wealth and raw materials that would benefit them financially thus slowly increased their hold of the sub incorrupt, which led to the war of 1857 that paved the way for full British colonization of Indian Princely states.Indias economic structure pre colonization was one of oriental despotism, which napricted its industrialization and development. Indias custom of the caste system precludeed modernisation of the economy because of the peculiar position of the artisan in the Indian village (Stokes 1973 139). When the British colonized India they became the ingredient of economic modernization and wanted to deliver the goods a monopolistic trading position (Maddison 1971 35). Indias predisposed socio economic order was greatly influenced by the market forces, industr ial competition and modernization advance by the modern imperial state. Indian economy was integrated into the world economy as a result of British colonization.India began trading with the world long before colonization took place in the sub continent, tho trade began to grow exceedingly fast in the late eighteenth century as the result of the Charter subroutine of 1813, which gave Indias trade a major boost compared to modern standards. A rapid growth in trading started from 1800 till the beginning of the First World fight. Tirthankar Roy measures Indian trade by the contribution of foreign trade (or exports) to national income (Roy 2000 32). In India during the late 18th century and early 19th century the national income (at present value against 1968 as base rate (index)) was 1.5 % per annum and the growth rate during 1868 and 1913 of imports and exports was 4-5 %. The component of imports and exports was escalating rapidly throughout the 19th century. Despite the escalatio n of foreign trade, nationalists argue that the British colonization of India in fact hindered Indias economic growth. Angus Maddison (1971) proposed that the British were automatic to assist with the Indian economic development as long as it did not diverge away from their own economic interests. For example the British colonial rule exercised a free trade policy in India, which meant that all British imports came into India without any duty paid on goods and when a small tariff was necessary for Indias revenue purposes, the British in turn compel equivalent excise duty on Indian products to prevent them gaining a competitive advantage (Maddison 1971 39). Maddison (1971) continues to argue that if India had been politically independent, her tax structure would probably have been different (Maddison 1971 39) and the trade turnover much higher, for display case Brazils Import revenue was 21% of trade turnover, whereas Indias revenue was only 2.2% in the 1880s. Some academics estim ate that the net transfer of capital from colonized India to Britain was 1.5% of the total GNP of the sub-continent. The trade policies that the British imposed on India were tools of exploitation and a ploy to force its manufactures on India and crush domestic industry (Basu 2006).Initially, India was a feudal society yet British colonization of India institutionalized its society and transformed its agricultural industry. It introduced property rights resembling the unencumbered private property characteristics of Hesperian capitalism (Maddison 1971 45) and collected land revenue in the form of taxes imposed on the husbandmans and peasants. During the first one-half of British colonization of the sub- continent the agriculture industry grew, firstly in order to feed the growing population and secondly to export other countries that demanded the cotton, teas, and opium that India produced. From the tip of 1860 to 1880 the demand for cotton grew considerably and for a some years the value of cotton exports was more than half of the value of all exports (Desai 1969 21). It suggests that in 1859 the price of cotton per lb was 2.7, however as the export grew to 14 lakhs of bales, so did the price pre lb to 11.5. hence the demand for such goods meant that India was leading to commercialization and entering the world economy. besides this prosperity did not last. From the period of 1895 to 1914 India suffered from two ruthless famines, which were an amalgamation of infixed causes and administrative failures. Yet the British did in this period, also try and introduce new reforms, they established a famine relief policy that include the expansion of irrigation and better infrastructure. The Indian agriculture industry went into decline from the period of 1930 to 1940 Desai (1986) suggests that this decline was due to the great depression and provincial autonomy. The depression, which was felt in all through the world, lowered agriculture prices in India hence led to a decline in farmers income however their responsibilities to the government remained the same, they still had to pay taxes on the land, etc. The second World War increased the shoot down on the farmers as the demand for agricultural goods on the world market declined and the exports of jute, cotton and groundnut fell to half or less in three or four years (Desai 1986 26). In spite of this the demand for food crops increased India supplied food crops to Western Asia and the increase in the equipoise of the military meant that consumption increased.Due to the increase in trade and some slight advances in agriculture the British colonization of India helped established a system of centralized of governance and amalgamated the administration of India, they improved the governing of the states, security of life and property (modern source book), and in addition to this the British also improved the infrastructure of the sub- continent. They invested in repair, enlargement and unification of superannuated irrigation systems (Roy 2000 46) as it was the most straightforward way of increasing yields of agriculture, helping the farmer that would in turn result in more revenue for the government, and help prevent further famines. However they procured returns for their investment to the irrigation from increasing revenue charged on irrigated land and on water rates.The British also invested hard in the Railway industry in India, they considered it an important investment as it increased the volume of trade in the sub-continent and improved Indian social conditions. The railways helped promote the agriculture exports, it made the export of large sums of raw materials easier and provided seamy transport. The British thought of themselves as saviors of the Indian people spreading western civilization (MacPherson 1955 177). The first railway tracks were laid in 1853 under the counselor Dalhousie and by 1869 5,000 miles of tracks had been laid down. From the 1 880s onwards the railway construction took on a new life and by 1910 India had the 4th largest Railway system in the world which cost the Indian people 50 million, however MacPherson (1955) argues that 95 million was invested into Indian railway by British companies. According to Desi (1969) the railway industry was built not to benefit the Indian economy but instead their own. During the First World War the British employ the Indian railway to meet the demands of their own country, the Second World War incapacitated the Indian railway system as moved the rains to the center(a) East and the railway workshops were renovate to weapons workshops.Up until 1835 the Indian sub-continent did not have a universal currency, which is needed in a modern state. The Act of 1835 introduced India to the silver rupee, which was to be the legal tender of the sub- continent. In 1861 the paper currency act was launched, this Act enabled the government to issue paper notes, this followed the English currency principle, that there must be a full metallic reserve above a certain amount (Desai 1969 226). The circulation of this tender began to grow slowly when confidence developed and there was more education (Desai 1969 227). Banking in the sub- continent can be seen in two dimensions, the formal and informal sector. Roy (2000) puts forward the idea that the formal sector of the banking industry four constituents, the exchange banks, mutual impart banks, presidency banks and the cooperate credit societies. The informal sector were not legally accepted as banks, however they dealt with credit transactions in agriculture and small-scale industry in the forms of loans given to by employers or merchants to actual producers against work in progress (Roy 2000 202). The modern bank system stabilized the sub- continent however there were still failures in the system, from 1913 to 1925 some 180 banks collapsed, this according to Desai (1969) was due to inexperience, incompetence and ev en fraud (Desai 1969 241).The British did not introduce the education to India nonetheless they did promote education hard amounts the population. By the beginning of the 19th century the British made English he official business language of the sub- continent. According to Sanne (2003) the British wanted people in India to be English in mind, but with Indian bodies (Sanne 2003 12) and gave assistance to a more extended and systematic promotion of general education (Lyer 2004 14). According to Roy (2002) British investment played a major role in shaping the education system in India. By the end of 1901 there were approximately 14,000 colleges in India, there were a few universities in Mumbi, Kolkata and Madras. Sanne (2003) continues to suggest that British education in the sub- continent create a vast amount of highly educated elite as well as a huge amount of semi educated, low paid, English speaking subordinate (Sanne 2003 12).The telecommunicate was also something that that Br itish introduced to the sub- continent that indirectly shaped its economy at the time and in the post- colonial period. Roy (2000) states that the wire was a vital military tool in the rebellions and wars of appropriation (Roy 2000 268), and by the mid 1900s there was rapid growth in the telegraph industry, from 0.38 million Rs in 1858 to 26.34 million Rs in 1921. Roy (2000) also claims that the British linked the Postal service in the sub-continent in the wake of migration and money orders. One could hardly live without the other (Roy 2000 267). Roy (2000) continues and states that there was a prefatorial postal service in India in the pre-colonial periods however it really took off when post offices were opened in semi rural areas. The postal service and the telegraph created jobs for many semi educated indigenous people in India and also bridged the gap of communication in the huge country.British colonization of India also changed the legal structure of the sub- continent. A ccording to Cohn (1961) pre- colonial India did not have one legal system but multiple systemswhich differed from place to place (Cohn 1961 614). They had the world power law and the Hindu law to follow, however British colonization of India unite the legal system of the sub- continent and established civil courts in 1818.oer all during the British colonization of the Indian sub-continent they contributed to the economy in many ways. They set up a currency system, which was still in place in India up until recently. Introduced the sub- continent to the telegraph system, which connected the country to the rest of the world. It reformed the Indian agrarian society, increased trade through the improvements in the infrastructure. The railways, that British started build nearly 1750 years ago, have now grown into the largest railway system in the world under a single management in the world. Colonialism also commercialized the Indian economy and was an agent for modernization, for a fe udal society. These contributions cannot be ignored. When India gained its independence from the British in 1947, it had the basic interments for economic growth in place.Chapter Three, Developing economy after IndependenceResearch question What was the Indian economy like after independence?After India gained its independence from British colonialism in 1947, its economy was stagnant compared their confrere Commonwealth counterparts such as Malaysia who experienced an increase in their GDP growth post British Colonialism. Amartya Sen claims that many estimates suggest that a levelheaded economic decline took place during the last decades of British rule (Basu, Sisson 1986 28). following(a) Indias Independence the first Indian Prime Minister, Jawaharlal Nehru followed an economic policy of Fabian socialism and self-reliance. Under Nehrus leadership The Planning Commission was set up to guide the newly independent Indian economy to follow the semi socialist economic model. The com mission was set up to increase life story standards of Indians through using Indian resources, boost production and enhance employment. However these policies had an adverse affect on the economy because they hindered international trade, constructed inefficient industries and it pure(a) the private sector and economy with regulations and red tape.British colonization left India with some resources to modernization, according to Williamson (2006) it had the oldest capitalist institutions in Asia, such as the stock exchange. Post- colonial India had a contradictory economy it had the institutions in place that should have on paper made it a strong economic system in Asia. It had manufacturing industry although it was very weak. It had a railway industry that was one of the largest in Asia, however in was in disrepair. The Indias economy was had many burdens that stagnated the economy and hindered its growth. Along with the independence of India came the partition of the sub- contin ent, which according to Rothermund (1986) was a reason for the troubled economy of the time. The national planning commission of India wanted to kick start the economic growth of the country and came up with the Five Year Plans.These plans were guidelines to accept economic activity within the existing economic and social frameworks (Epstein 1973 243). The first Five Year plan was launched in 1951 by Professor Mahalanobis who embraced the Soviet two sector model, and desired to invest 35 billion rupees 20 billion rupees into the public sector and 15 into the public (Rothermund 1986 133) with an intention of increasing national income by 11%. By 1956 India had invested 31 billion rupees into the two industries and exceed national income more than 11% set by the Plan. throughout this period Indias industry grew at an average rate of 4.1% however the economy went into decline through th