Key features of its development include overpopulation, a significant portion living below the poverty line, limited infrastructure, reliance on agriculture, gradual capital growth, and low per capita income.
At independence, India’s economy was stagnant, characterized by a very low growth rate of per capita income. From 1860 to 1945, the growth rate was merely 0.5%, and from 1925 to 1950, it was a mere 0.1%.
The Indian economy lagged behind, exhibiting a per capita income of approximately ₹230 in 1947–48. A significant portion of the populace grappled with poverty, insufficient access to food.
Backward Economy
02
In 1950-51, India’s population was around 36 crores, with 8.3% illiteracy. The birth rate was high at 40 per thousand per year, and the death rate was 27.
Problem of Population
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the productivity per hectare was low due to factors like the zamindari system, dependence on rainfall, outdated farming methods, and inadequate irrigation
Agricultural Economy
04
Inflation persisted as a significant concern, evidenced by the wholesale price index surging from 125 in 1939-40 to 308 in 1947-48.