Historical reasons for poverty:
- History says that in 17th century India was comparatively a more urbanized and most commercialized nation. India had a strong hold in export of items like cotton textile, silk, spices, paddy, etc.
- India was ruined, completely after the entry of foreign rulers namely, British, French and Dutch and their colonization,
- Both, industries and agriculture got a major set-back during the British rule.
(A) Problems in agriculture:
- During the British rule, Indian economy was totally dependent on agriculture. The British did not show any interest in investing money in irrigation project in India. On the other hand repeated droughts, zamindari system, high . tenancy santh system, etc. destroyed economic condition of the farmers.
- Farmers used to be in constant pressure to repay debts and interest of debts of the zamindars, sahukars and big businessmen. Those who could not pay had to sell off their lands to repay.
- Owing to these reasons, farmers and cultivators started losing land and they became both, landless and jobless. This increased poverty.
(B) Problems in trade and industries:
- The British used to frame and follow such trade, tax and industrial policies in -India which would mostly benefit the British.
- Indian exports were prohibited in Europe whereas goods produced in England were given lot of tax concession and freedom” to sale in Indian market. Moreover, to supply these goods to each corner of India, Indians railway was extensively used.
- All such unfair policies made British extremely rich and India extremely poor.
- The British then invested the money earned from India in Britain to speed up industrialisation. This gave faster industrialisation in Britain.
- They sold the goods produced in Britain industries to India at very high prices.
- Indian trade and business started losing their competitive power and production capabilities. This also ruined small cottage industries of India. As a result unemployment and poverty grew more.
- Thus, if we look at the history, the glorious India became a poor victim of the British and since then we are still struggling to handle our economy.
