3-3: The Economy of Modern India, 1860–1970 | B. R. Tomlinson (1993) | Volume III: The British Raj | The New Cambridge History of India

The Economy of Modern India, 1860–1970 | B. R. Tomlinson (1993)

Overview

Published in 1993, B. R. Tomlinson's The Economy of Modern India, 1860–1970 represents a significant contribution to The New Cambridge History of India series. This work details an extensive economic history of India during the latter part of the colonial era and the formative years post-independence, concentrating on facets such as economic advancement, colonial strategies, structural transformation, and developmental planning.
Tomlinson transcends classic narratives of colonial victimization, offering a well-rounded, data-supported perspective on the evolution of India's economy amidst British rule, world wars, partition, and the initial years of independence.

Historical Scope

The text covers a century of Indian economic history, spanning from:

• 1860 – The consolidation of British authority following 1857
• Through the World Wars and the Great Depression
• 1947 – The period of partition and independence
• Up to 1970 – The early phase of India's socialist planning era

Tomlinson analyzes the enduring and changing structures in Indian agriculture, industry, trade, public finance, and governmental policy.

Key Themes and Highlights

Colonial Economic Policy and Its Impact

• Investigates the influence of British rule on India's economic landscape:
• Emphasis on revenue collection, free trade strategies, and railway development
• A critique of the “drain of wealth” theory is counterbalanced by empirical evidence
• Minimal governmental involvement in industrial growth and social welfare

Tomlinson contends that while colonial economic mechanisms restricted domestic development, they simultaneously established a basis for modern sectors such as transportation and banking.

Agriculture and Rural Economy

• Investigates the stagnation of agricultural productivity during the colonial period
• Discusses topics including:
• Land tenure systems (zamindari, ryotwari)
• Famines and food insecurity
• The initial effects of the Green Revolution after the 1960s
• Highlights the persistence of rural poverty and insufficient investment into the 20th century

Industrial and Trade Development

• Charts the slow advancement of industry in colonial India
• Details:
• The growth of the textile, jute, steel, and cement sectors
• The roles of Indian entrepreneurs in contrast to British capital
• The effects of tariff changes, the Swadeshi movement, and demand during WWII
• Post-1947, the state takes on a crucial role as an economic planner and regulator

Finance, Currency, and Global Trade

• Explores India's position within the global capitalist framework, with monetary policy dictated by London
• Discusses the colonial currency system, the Gold Exchange Standard, and India's status as a net capital exporter during British rule
• After 1947, transitions toward self-sufficiency, foreign exchange regulations, and structured imports

Post-Independence Economic Planning (1947–1970)

• The volume concludes with an evaluation of the early Five-Year Plans under Nehru and Indira Gandhi
• Key observations include:
• The emergence of public sector enterprises (PSUs)
• A focus on import substitution industrialization (ISI)
• The hurdles of poverty, population expansion, and low per capita income
• Tomlinson critiques the sluggish economic growth of this period, often labeled the “Hindu rate of growth,” while also emphasizing significant long-term investments in education and infrastructure.

About the Author: B. R. Tomlinson

Brian Roger Tomlinson is an eminent British economic historian recognized for his insights into South Asian economic development.

• He served as a professor at the University of London and contributed to studies of economic imperialism.
• His work is notable for its thoughtful integration of nationalist and colonial viewpoints through meticulous statistical analysis, resulting in clear, scholarly prose that is accessible, making this book an essential resource for academics and students alike.

Why This Book Is Important

• Provides a comprehensive overview of the economic trends that have influenced the formation of modern India.
• Steers clear of ideological extremes—neither excessively pro-colonial nor overly nationalist
• Explains the connections that persist across the colonial and post-colonial divide
• Acts as an essential resource for comprehending the impact of colonial legacies on development planning

Who Would Benefit from This Book?

• Scholars of Indian economic history, development studies, and postcolonial economics
• Researchers focusing on colonial policy, industrialization, or changes in agriculture
• Applicants for civil service exams (UPSC, CSS) who are studying economic history and development models
• Anyone curious about the evolution of India's economy pre and post-1947