Indian industry at the eve of independence

Characteristics of Indian industry from 1900 to eve of independence

  •  Very Limited growth of modern Industries . At independence
    • Modern factory sector never employed more than 2% of labor force.
    • Modern industries only 7% of GDP
    • Per capita income increased only 20% between 1900 to 1947
  • Composition of Manufacturing: Consumer goods dominated the industrial production.
    • 90% of core goods imported
  • Dominated by Textile Industry –
    • 60% of Manufacturing output
    • next being engineering @ 8.4% and steel @ 7.6%
    • Absence of core sectors: A characteristic feature was under development of capital goods and modern banking and insurance sectors. India relied on imports to meet around 90% of its machinery needs in 1951.
  •  Technology: Research institutions and research in companies almost non-existent. Indians not appointed to higher skilled jobs.
  • Gradual Indianisation,
    • By Independence, 60% of Industries, owned by Indians
    • In 1913, 60% under British
  • Regional Concentration : Regionally only a few states had industry. Only a few sectors like sugar, textiles etc. dominated whole industrial output.
  • De Industrialisation of Traditional Industries
  • Export orientation had been against country’s interests.
  • Male dominated