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Indian Economy on the Eve of Independence

Population, work and infrastructure

Describe India's people, jobs and infrastructure in 1947.

The first census of British India was held in 1881. Up to 1921, India was in the first stage of the demographic transition (both birth and death rates very high, so the population grew slowly). After 1921 came the second stage (death rates fell, so the population grew faster).

Living conditions at independence were very poor:

  • Literacy was below 16 per cent; for women it was only about 7 per cent.
  • Infant mortality was about 218 deaths per thousand babies born.
  • Life expectancy was only 32 years.

Occupations: 70-75 per cent of the workforce was in agriculture, about 10 per cent in manufacturing, and 15-20 per cent in services. There were big regional differences: in parts of the old Madras and Bombay Presidencies and Bengal, more people had moved out of farming, while in Orissa, Rajasthan and Punjab the share in agriculture rose.

The British did build infrastructure, but mainly for their own purposes:

  • Railways, started in the 1850s, broke down barriers of distance and helped the country come together. But they mainly served to carry raw materials to the ports and British goods inland, and they pushed commercialisation of agriculture.
  • Roads were built mainly to move the army and carry raw materials.
  • The telegraph was introduced mainly to help maintain law and order.

At independence, India faced huge challenges: low farm productivity, weak industry, widespread poverty and unemployment.

A poor, rural, unhealthy country with infrastructure built for its rulers.
India at independence.

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