Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsPOVERTY2 Marks
Question
Explain the historical reason for poverty.
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Answer
$(1)$ Historical Reasons:
Historians says that in the $17th$ century, India was comparatively more Urbanized and commercialized nation.
The village people were decentralized.
India was business house of the world and India had major share in exports of cotton textile.
India also exported silk, spices, paddy.
India was one of the most Industrialized nation in the world.
But after entry of English, French and Dutch people and due to their policy of colonial exploitation, India's agriculture and industrial situation deteriorated and then after British rule finished all business and started reduction of export.
One of the major factor was agriculture sector.
As we know that Indian agriculture depends on monsoon.
Britishers did not show any interest in investing money in irrigation projects.
On other hands due to repeated draught, zamindari system and tenancy system, the farmer's economic conditions deteriorated and they were under the pressure of debt and interest of loan given to them by zamindars, money lenders and big businessmen.
Cultivators started losing land.
The farmers and agriculture suffered, and so poverty increased.
During British rule they followed trade policy, tax policy and industrial policy which Would benefit them by trading in India.
Indian exports were prohibited in European countries.
In the same way England was given freedom to sell their goods in Indian markets.
To supply these goods to each and every corner of India, Indian railway was extensively used.
In this system, Indian business and trade started losing their competitive power and production power.
Due to this and of policy from Britishers gained surplus production and sale in India which they invested in speedy development of industrialization in Britain.
Small and cottage industries were mined in India. As a result poverty and unemployment started increasing.
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