India is a guided national economy, which is increasingly dereguliert and denationalized since 1991. Since that time the country experiences a large growth and particularly profits from the globalization. Meanwhile India is the twelfth-largest national economy of the earth with a gross domestic product of more than 600 billion US Dollar (2003). It ranks however further among the developing countries.

Development

The British colonial age

In the before-colonial time a highly developed handicraft coined/shaped the economy of the cities. There was a well removed commercial net, that the export of high-quality goods (e.g. Spices, materials) after Eastern Asia, Ostafrika, Europe and into the Near East made possible. The large majority of the population had however in the agriculture her getting along.

The Englishmen seized in 17. Century in the coastal regions of India foot. For the British east India company equipped with extensive commercial privileges the cloth trade proved as particularly lucrative. In weaving mills, particularly in Bengalen, it let manufacture textiles for export to England. In early 18. Century controlled the company nearly the entire exchange of goods of their motherland with India. Starting from 1765 you transferred the practically powerless Grossmogul Schah Alam II. also the right to be allowed to raise in the province Bengalen taxes. By the Industrielle revolution in England toward end 18. Century replaced industrially manufactured British textiles handicraft production in India. The consequences were mass unemployment and depletion the Indian weber box. In 19. Century flowed ever more industrial goods on the Indian market and displaced relating to crafts manufactured native goods. The handicraft was soon only limited to inferior products, which did not justify the high transport costs from Great Britain to India, as well as few native luxury goods such as decoration and silk.

At an industrialization of India the British did not show interest in view of the enormous sales prospects in their own products. So only slowly a home industry could develop in India. Their beginnings were appropriate for the center of the cotton trade in Bombay. 1854 were created there the first spinning mill. The recent cotton industry saw itself suspended to an enormous competition pressure by British mass-produced goods, so that it was able to only survive, by manufacturing rough cloth for the poorer population at prices, which could not undercut British offerers because of the long route of transportation. In late 19. Century spread the industrielle cloth production also into the hinterland Bombays and the today's Gujarat. Up to the First World War of India was grown up cotton industry to fourth largest the world. The British competition could displace it completely however only after the war.

To the cotton industry the jute industry developed about at the same time in Bengalen. A Britisher furnished the first jute spinning mill in Calcutta to 1855. Starting from years the branch of industry experienced the 1880er an upswing. After the First World War the export of industrially finished jute exceeded for the first time from raw jute. However the division of British India in India and Pakistan of the jute industry shifted a setback, since the main cultivation areas lay in east Pakistan (today Bangladesh), while the processing was limited almost exclusively to the region Calcutta the Indian part of Bengalens.

Apart from the textile industry, which more than half of all industrial workers busy, arrived only the steel production already before independence at greater importance. Jamsetji Tata created 1907 first and Indian steel plant in Sakchi, later it renamed to honours in Jamshedpur, only into the 1950er years, which manufactured rails for the building of railways. The First World War led, like already in case of the textile industry, to the interruption of the British imports and help the steel plant thereby to the lift. After the war it attained a controlling position on the steel market of India.

When the British dismissed India 1947 into independence, the country was a hardly industrialized agrarian state. The traditional handicraft had not been able to withstand the superior British industry. Only in few metropolises a considerable industry had developed. The agriculture had been for the British only as tax source of importance and remained underdeveloped, uneconomic and overstaffed. On the other hand the colonial gentlemen created a quite well developed Eisenbahnnetz and modern administrative structures.

Socialist adjustment 1947 to 1991

Articles in category "Economics of India"

We found here 15 articles.