Read this article, which takes a much longer-term historical view of
India's contributions to the global economy. In particular, it covers
how British colonial rule may have "broken" the economy in ways that
have yet to be repaired.
Impact on Agriculture
The impact of the land revenue systems (Ryotwari/ Mahalwari, etc.) led to the agrarian controlled structure with property rights leading to under-utilization of land and of manpower and led to inefficient use of land and low agriculture productivity.
This led to different forms
of land ownership as under:
- Exproprietory tenants – earlier owners of land who
had lost their status
- Occupancy tenants – those who acquired tenancy
right as per the 1935 Act
- Non- Occupancy tenants- these were tenants at will
and paid cash rents that were not regulated by
administrators
- Share-croppers – who paid rent in kind at 50 percent of
gross produce and unprotected
- Bengal Tenancy Act 1885-12 year's continuous
occupancy conferred rights to tenants.
- Agra Tenancy Act 1901-7 years continuous
occupancy conferred lights to tenants.
- Agra Tenancy Act 1926 – life tenancy rights.
- UP Tenancy Act 1939 – tenants for life and inheritable.
The leasing out and leasing in of land led to feudal relationships and a stagnant setup (between 1870 and 1920, agriculture grew @ 0.04%) and was not on commercial lines due to the existing economic, soil, irrigation, and cultural set-ups. Agriculture suffered as there was mass exploitation of the tenant cultivators, extraction of the marketable surplus produce in the form of arbitrary rents, and no investment in enhancing land productivity. Summing up, the colonial legacy led to the continuation of outdated cultivation methods, low agricultural yields, and abnormally high rents paid by farmers to the zamindars.
Family labour had to
necessarily work in the fields and no organized
marketing system except the weekly/bi-weekly 'haats'
or 'shandies'. This led to subsistence-level agriculture
and eviction of farmers at the will of the zamindars and
added to the plight of the smallholder farmer and laid
the foundation for the growing numbers of landless
laborers in India. The agrarian society then became a
hindrance to encouraging productive forces in the rural
economy and the productive capacity of farmers reached
a state of stagnation.