"Many economists believe that India paid a very heavy price for the British industrialisation, by becoming their feeder economy." Justify the given statement with any one valid argument. Critically appraise, infrastructural development in India during the British rule.

Question

Accepted Answer

I **justify** the statement that India paid heavy price for British industrialisation by becoming their feeder economy. Valid argument:

**Feeder Economy:**
- India was forced to export raw materials (cotton, jute, indigo) to British industries at cheap rates
- India imported finished goods from Britain at higher prices
- This created trade surplus for Britain but wealth was drained from India
- India's industrialisation was prevented to maintain dependence on Britain

**Critical Appraisal of New Economic Policy (1991):**
- **Positive:** Increased GDP growth, FDI inflows, foreign exchange reserves, export growth
- **Negative:** Growing unemployment, neglect of agriculture, low industrial growth, ineffective disinvestment
- **Overall:** Mixed results with some sectors benefiting while others faced challenges