Question

"During the British rule, the contribution of the industrial sector to the Gross Domestic Product (GDP) remained very low."
Justify the given statement with valid arguments in support of your answer.

Hint:

The industrial sector's low contribution to GDP under British rule was a result of colonial policies that prioritized resource extraction and the promotion of British industries, while hindering domestic industrial growth.

Answer 1

The contribution of the industrial sector to India's GDP remained very low during the British rule for the following reasons:
1. Colonial Economic Policy:
The British colonial policy was primarily designed to exploit India's resources for the benefit of Britain. The British government focused on raw material extraction rather than developing a strong industrial base in India. As a result, the industrial sector was neglected, and India remained largely dependent on the British for manufactured goods.
2. Deindustrialization of India:
During British rule, India experienced deindustrialization, especially in the handicraft and textile industries. British policies, such as high tariffs on Indian textiles and the promotion of British manufactured goods, led to the decline of Indian industries. This further reduced India's industrial output and contribution to GDP.
3. Limited Infrastructure Development:
The British invested minimal resources in developing infrastructure to support industrial growth. Railways, roads, and ports were built, but these were primarily aimed at facilitating the extraction and export of raw materials from India to Britain, rather than fostering domestic industrialization.
4. Emphasis on Agriculture:
The British regime focused on extracting agricultural goods, such as cotton, jute, and indigo, for export. The agricultural sector was taxed heavily, and the surplus was used to finance British industrial development. This led to stagnation in industrial growth in India, as resources were diverted away from industrial development.
5. Lack of Industrial Policy:
The British did not formulate any industrial policy for the development of Indian industries. There were no incentives for the growth of domestic industries, and foreign enterprises, mainly British, dominated the industrial landscape. The absence of a conducive environment for industrial development hindered the contribution of the industrial sector to GDP.
In conclusion, the British colonial policies, focusing on resource extraction and serving British interests, prevented India from developing a strong industrial base during the British period.