What were the main reason for slow growth of economy during British rule?

Poverty, hunger, famines, epidemics and inadequate health care services were the major explanation for the sluggish pace of population growth under British rule. Explanation: Policies followed by the British Government became the key explanation for the weak economic growth under British rule.

What are the impact of NEP 1991 on Indian economy?

The New Economic Policy of 1991 included standard structural adjustment measures including the devaluation of the rupee, increase in interest rates, reduction in public investment and expenditure, reduction in public sector food and fertilizer subsidies, increase in imports and foreign investment in capital-intensive …

What factors are responsible for slow growth of economy?

Other important factors affecting the global economic growth could be the rising interest rates, fluctuating crude oil prices, geo-political instability and inflation. The slowdown of the global economy is a cumulative effect of all these different factors.

What are the causes of slow economic growth?

From a simple accounting perspective, there are two main factors behind slower growth: the fall in fertility during the 20th century, and the shift of our expenditures away from goods and towards services. And both of those explanations can be traced back to economic success.

What was the reason for low economic development under British colonial administration?

The economy of India was full shattered under the British rule. They did not encourage the growth and development of industries in India. Handicrafts and cottage industries were crushed by them. The market for indigeneous industries was captured by the colonialists.

What were the economic problems of India on the eve of Independence?

Most crucial economic challenges at the time of independence were: Little industrialisation and decline of handicrafts. Low agricultural output and high imports of grains. Low figure of national income and per capita income which showed extreme poverty.

What are the main negative impact of NEP in India?

The poor unskilled labour forces continue to work in low-productivity jobs drawing low irregular wages. 2. Neglect of Agriculture : During the reform period agriculture sector has been neglected. The growth of agriculture sector has declined whereas the growth of service sector has gone up.

What is Licence Raj in India?

Licence Raj, refers to the involved various licenses, regulations and accompanying red-tape that were required to set up and run businesses in India between 1947 and 1990. The Licence Raj was the result of Indian Planned Economy where each and every aspect is controlled by States and Central Government.

Why was the period 1950-80 known as ‘License Raj’?

Therefore the government has to put several controls and regulations on each and every economic activity. So the period 1950-80 was known as ‘License Raj.’ 1. Economic Instability: The fiscal deficit had been increasing in India since 1980.

What was business competition under the License Raj?

Business competition under the License Raj meant getting licenses before your competitors. Often businesses acquired licenses, not to produce, but to stop the other from expanding. As Dhirubhai Ambani said, the art of managing government relationships was most critical to business success.

Was the British Raj responsible for India’s poverty?

India’s nationalist historians have blamed the British Raj for India’s poverty. The classic nationalist case is that India had been rich before the British came and colonialism weakened agriculture and “deindustrialized” India, throwing millions of artisans out of work.