Class 12 Economics – Indian Economy on the Eve of Independence

Chapter Overview

This chapter examines economic conditions in India just before independence, covering agriculture, industry, trade, infrastructure, demographics and occupational structure under colonial policies that prioritized Britain’s interests. :contentReference[oaicite:0]{index=0}

Important Keywords

• Agrarian Economy: Over 70–85% population dependent on low‑productivity agriculture. :contentReference[oaicite:1]{index=1}
• De‑industrialization: Decline of handicrafts; small modern industry. :contentReference[oaicite:2]{index=2}
• Drain Theory: Wealth flow to Britain, proposed by Dadabhai Naoroji. :contentReference[oaicite:3]{index=3}
• Colonial Infrastructure: Railways, roads, telegraphs built to serve imperial interests. :contentReference[oaicite:4]{index=4}
• Trade Imbalance: Raw‑material exports vs finished‑goods imports. :contentReference[oaicite:5]{index=5}
• Demographic Transition: High birth/death rates; literacy ~16%. :contentReference[oaicite:6]{index=6}