Predominance of Agricultural Occupations

The Predominance of Agricultural Occupations

The stagnating, rather a declining, character of the economy during the British rule is also evident from the unfavourable change in its occupational structure. Unlike a growing economy, where the percentage of workers in agriculture declines and that in manufacturing, transport and other services increases, the reverse happened in the case of India. The proportion of the working force engaged in agriculture increased slightly and that engaged in non-agricultural sectors decreased slightly. This shows in unambiguous terms that the economy slid down during this period. Thus with falling per capita income and a deteriorating productive structure, India not only stagnated but also decayed. In the words of V.V. Bhatt, the “Indian economy was passing through a phase of economic stagnation or maybe of economic decay”. In brief, India, instead of developing became underdeveloped.

Causes of Stagnation

Many reasons explaining India’s backwardness have been advanced. Such factors as lack of resources, low-level techniques, anti-growth religious and social attitudes and institutions, population pressure, etc, have been put forward as possible causes. We examine these explanations before we pin down the cause or causes of economic stagnation. . Paucity of resources. : It has been argued, largely in the past, that the stagnation was a direct consequence of the paucity of resources. Of course, a country that does not possess adequate resources cannot hope to develop. But it does not follow that a country should have all types of resources and in ample quantities for development. This is simply impossible. Countries with fewer resources have developed. For example, counties like Japan, which are not so rich in natural resources and depend upon imports, have developed. As late as 1936 about 90 per cent of Japan’s crude oil, 99 per cent of her iron ores, and 11 per cent of her coal were imported. Even for her well-known textile industry, Japan depends upon imported raw cotton and wool, Yet Japna did develop, even though it was industrially behind India until 1880.

It follows that the industrialisation of a country is not necessarily dependent upon the availability of all types of resources in ample quantities. In the case of India, however, the resource position has always been much better. Mineral resources, water and forests are vast. India possesses the largest resources of iron ore, about one-fourth of total world reserves. In the case of coal too, India is à in a comfortable position. If we take iron and coal together, India ranks next to the USA. India ranks first in mica and third in manganese ore. In the case of hydel power, India ranks third in the world. Similarly, forest resources it has a high ranking. No doubt India is deficient in Certain resources e.g., tin brass nickel etc. But on the whole, India possesses ample resources, During British rule, nothing was done to make use of these resources for the development of the country. It has been estimated that by the time of independence only 1.5 per cent of water resources, and 0.5 per cent of iron and coal resources had been exploited. It, therefore, follows that it makes little sense to explain India’s backwardness in terms of the paucity of resources.

Low-level techniques

It is sometimes pointed out that India lagged because it used primitive techniques in different spheres of its economic life. It is ‘said that because of this, production remained low. This again is a weak argument. In the first place, it needs to be stated that all developed countries used simply., low-level techniques in the initial stages of their growth. Therefore, there is nothing peculiar if Indians used these techniques. In the second place, one should also bear in mind that before the 19th century the skill of Indians in technical arts, compared to other countries was of no mean order. Professor Weber wrote that “in the production of delicate woven fabrics, in the mixture of colours, the working of metals and precious stones, the preparation of essences and in all matters of technical arts, India has from early times enjoyed a worldwide celebrity.

The question that cries countries with comparatively lower techniques improved upon them, in India the reverse. Thirdly, the weakness of the argument lies in the fact that improved techniques are neither a prerequisite nor can they exist independently of economic development. No one, not even in theory, has ever suggested that improved techniques must come before development starts. Nor is it possible to think that high-level techniques, must exist before development starts. In fact, the process of improvement in techniques is only an aspect of economic growth.

Anti-growth attitudes and institutions: Some economists, like Knowles, attribute India’s stagnation to her religious and social structure. It is argued that in India there are religious customs, practices and social institutions giving rise to castes, the joint family system, etc. which foster attitudes and behaviour inimical to economic growth. Belief in life after death, the hereditary character of many occupations, restrictions on mobility, lack of interest in worldly material life, etc. are cited as some of the drawbacks in the Indian people.s e There may be some strength in this argument. But it does not explain the entire situation. How is that Europe, where Christianity offered hell to the rich, made rapid stride?

As everyone knows, this religion preaches:  “It is easier for a camel to pass through the eye of a needle than for a rich man to enter Heaven”. Yet nations that accepted this religion became rich. In other countries too, e.g., in Japan where Buddhism was a significant force, development took place. Of course, in India, the Hindu social system has been more restrictive in certain respects. But this society has also allowed attitudes relating to material gains and those relating to God to mingle, without the person suffering from the contradiction. Indians often pray for riches in the morning, do worldly business in the day, and retire at night, thanking God without their conscience ever being pricked.

Population-Pressure

Another explanation of backwardness often advanced by Kingley Davis is that it is the increase in population that is the villain. It is argued that a rising population, by consuming an increasing proportion of stagnant production, leaves little for investment.

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