India’s Agriculture-Based Economy: Challenges Before Independence
India has long been an agrarian economy, with agriculture serving as the backbone of the country’s economic structure. Even today, agriculture remains crucial, contributing around 70% of the national income. However, the situation was even more extreme before independence, with 95% of the economy dependent on agriculture.
At that time, about 85% of India’s population lived in villages, and agriculture was the primary means of livelihood. Despite being the most important sector, agriculture faced severe economic decline, and the Indian economy was in a state of stagnation as it struggled to overcome several challenges.
Key Challenges Faced by Agriculture Before Independence
High Vulnerability: Agriculture was highly vulnerable to changes in environmental factors. A month of low rainfall could lead to crop failure and reduced productivity, leaving farmers and the economy in distress. This lack of resilience made the sector unstable and unable to thrive.
Low Productivity: Despite India’s vast agricultural land, productivity remained low. There were frequent declines in output, and the country struggled to make full use of its agricultural potential.
Zamindari System: One of the major factors behind agricultural stagnation was the zamindari system. In this system, landlords (zamindars) collected rents from farmers who worked the land, regardless of the agricultural conditions. This exploitative system suppressed the growth of agriculture and impoverished farmers, leading to economic stagnation.
Scarcity of Agricultural Resources: A lack of essential resources like fertilizers, quality seeds, and irrigation contributed to the stagnation of agriculture. The inability to invest in agricultural infrastructure further hampered progress.
Commercialization of Agriculture: Over time, agriculture shifted from subsistence farming (growing crops for personal consumption) to commercialization, where crops were grown for the market. However, the presence of middlemen meant that farmers were often exploited and unable to improve their economic conditions, further deepening the stagnation in the agricultural sector.
Agricultural Sector during the Independence
Causes of Stagnation of Indian Agriculture During the Colonial Period
Q.1 Explain the state of agriculture in India on the eve of independence. Or What were the characteristics of Indian agriculture on the eve of independence? | |
Answer: | |
(A) Explanation | ● The Indian economy was an agro-based economy on the eve of independence. ● 75% of the Indian population was earning a livelihood from agriculture. ● Despite being a primary source of income for a major population, this sector faced a decline under the British rule. |
(B) State of agriculture on the eve of independence can be observed by the following characteristics: | |
(1) Small and fragmented land holdings | ● A landholding is defined as the area of land that a person or a family owns. ● Land holdings in India were not only small but scattered as well. ● Small and scattered land holdings were very difficult to cultivate. |
(2) Use of outdated and old technology | ● At the time of independence, old and outdated methods of farming were used in the agriculture sector. ● There was insufficient use of fertilisers and other machines. |
(3) Dependence on rainfall | ● Agriculture was excessively dependent upon rainfall. ● Good rainfall implied good output, while poor rainfall implied poor output. |
(4) Low level of productivity and production | ● Level of productivity, i.e., output per hectare of land was extremely low. ● Low productivity implied a low level of output. Low output could be produced due to fragmentation despite large areas being under cultivation. |
(5) Subsistence farming | ● Subsistence farming is one where the primary objective of a farmer is to produce for his own family. ● The sole aim is to produce for self-consumption or for his family rather than selling to others to earn money.[4] |
(6) A wedge between owners of the soil and tillers of the soil | ● Owners were seldom the tillers of the soil, and they never shared the cost of output. Instead, they shared the output. ● They were only interested in maximising their rental income. ● The tillers of the soil (farmers) were given very less for subsistence. ● The consequence was backwardness and stagnation of agriculture. |