Nitte Meenakshi institute of technology

Managerial economics
18MBA102

Submitted to: Prof. Malini T.N

Submitted by: Chandan M.P
Apoorva B.R
Vidya K.M
Monisha S
Colonialism and
development of Indian
economy
INTRODUCTION
• The historical phenomenon of colonization is one that stretches
around the globe and across time.
• Modern state global colonialism began in the 15th century with the
“age of discovery”, led by Portuguese, and then by the Spanish
exploration of the America, the coasts of Africa, the middle east, India
and east Asia.
• The Spanish and Portuguese empire were the first global empire
because they were the first to stretch across different continents,
covering vast territories around the globe.
• In 1492, notable Italian explore Christopher Columbus and his Spanish
crew discovered the Americas for crown of castile.
Colonialism in INDIA
• Vasco da Gama’s maritime success to discover for Europeans a new sea route to
India in 1498 paved the way for direct Indo-European commerce. The Portuguese
soon set up trading-posts in Goa, Daman, Diu, and Bombay.
• The next to arrive were the Dutch, the English- who set up a trading-post in the
west- coast port of Surat in1619- and French.
• The internal conflicts among Indian Kingdoms gave opportunities to the
European traders to gradually establish political influence and appropriate lands.
• Although these continental European powers were to control various regions of
southern and eastern India during the ensuing century, they would eventually
lose all their territories in India to the British, with the exception of the French
outposts of Pondicherry and Chandernagore, the Dutch port in Travancore, and
the Portuguese colonies of Goa, Daman, and Diu.
Meaning

Colonialism is a term where a country conquers and rules over other

regions. It means exploiting the resources of the conquered country
for the benefit of the conqueror.

Colonialism is the practice by which a powerful country directly

controls less powerful countries and uses their resources to increases
its own power and wealth.
Definitions
• Collins English dictionary defines colonialism as "the policy and
practice of a power in extending control over weaker peoples or
areas“

• Webster's Encyclopaedic Dictionary defines colonialism as "the

system or policy of a nation seeking to extend or retain its authority
over other people or territories"
Why did the British colonize India & how did
it effect the people already living there?
• What is India like prior to the arrival of the Europeans ?
• Why were the British interested in India ?
• The British became interested in India for two reasons
1.Raw materials
2. Consumers (300 million population)
• Originally India was operated by corporation , later taken over by the
British government
Positive effect of colonial rule
• Railroads enabled India to develop a modern economy and connected
regions
• A modern road network , telephone and telegraph lines, dams,
bridges and irrigation canals were created
• Sanitation and public health improved
• Schools and colleges were founded, and literacy increased
• British troops cleared central India of bandits
• End to local warfare among competing local rulers
Negative impact for India
• British held most of the political and economical power
• Profitable industries such as cotton, salt, construction, tea, etc were
firmly controlled by the British .
• Conversion to cash crops reduced food production, causing famines in
the late 1800s.
• Loss of cultural practices and language
• Division between “Anglicized” elites and traditional Indians
• Humiliation of being “inferior” in one’s one home
• The British controlled the government or economy.
development of Indian
economy
Introduction
• India is today one of the six fastest growing economies of the world.
• Indian economic development can be roughly divided into 4 phases.
• Phase 1(1950) India defined development priorities based on self-
reliance.
• Phase 2(1960) Revamping of agriculture now popularly called green
revolution.
Cont…
• Phase 3 (1970) Considered a decade of consolidation & preparation
for change.
• Phase 4 (1980) To begin with the policy changes concerned boosting
production & productivity. Direct export controls began relaxed & also
government began to relax the domestic regulatory.
Meaning of economic development
• Economic development means economic growth along with the
desired changes in the distribution of national income, other
technical and institutional changes.
• It means increase in the efficiency of the factors of production, better
techniques of production, positive changes in attitude towards work
and life, increase in the importance of non-agricultural sector and so
on.
Economic Economic
Changes Development
growth
Challenges of Indian economy
POVERTY
a) It is a situation in which a person is unable to get minimum basic
necessities of life i.e food, clothing & shelter for his own life.
b) As per National Planning Commission 36% of the Indian population
was living below poverty line in 1993-95.
UNEMPLOYMENT
a) A situation in which a section of people, who are able & willing to
work but do not find gainful work.
b) The increase population is pressing hard on economic resources as
well as job opportunities.
c) Indian government has started various schemes such as Jawahar
Rozgar Yojna & Self Employment Schemes for Educated
Unemployed Youth(SEEUY).
POPULATION EXPLOSION
a) Population in India is 1.3 billion according to 2018 census.
b) Such a vast population puts lots of stress on economic
infrastructure of the nation.
c) Thus India has to control its burgeoning population.
RURAL URBAN DIVIDE
a) It is said that India lies in villages even today when there is lots of
talk going about migration to cities, 70% of the Indian population
still lives in villages.
b) There is a very stark difference in rural & urban growth. Unless
there is no balanced development, Indian economic growth
becomes difficult.
Drives for development of Indian economy

Manufacturing
Agriculture & Infrastructure
service

Telecommunication Financial sector

THANK YOU