Why is India still poor??

Why is India still poor???

In 1914 India had largest jute manufacturing industry, largest canal network, largest railway network,4th largest cotton textile industry but still India with 2.5% share on world trade could not rise till 2011.what happened that hampered its growth? 60-70 years ago Karl Marx predicted that these factors would transform India but why it didn’t happen? Are Britishers actually responsible for this state or our own people are accountable??

 India was called ‘sone ki chidiya’ because of the wealth it holded, fertile grounds and share in world trade. In 1830 India’s industrial production in world was 17.6% while Britain stood at 9.5%.By 1900 it declined to 1.7% while Britain grew to 18.6%.It was the industrial revolution that destroyed Indian industry which was mainly labour based textile industry. When mill made cloths came, weavers lost their jobs, and people started using imported readymade garments. Raw cotton was now exported instead of finished products and revenue reduced while Britishers started earning by just processing the Indian raw cotton and supplying it back to India in finished product form at much higher prices and made a lot of money. But had they done this intentionally??? Suppose they didn’t allow industrial revolution to come in India then it would have come sooner or later on as it had to with the advent of technology.Britishers did exploit India by directing profits of India to fulfil their own trade deficits and they didn’t invest in India like in America which progressed at a faster pace after independence and didn’t encourage literacy while other countries after independence laid special emphasis on literacy campaigns.

                As a result of sudden changes in economic environment, advent of technology in other part of the world giving other countries a competitive advantage, better literacy rate helped in taking long steps towards development while India was still struggling with its partitions and religious issues. Had it concentrated on capital investment in industry it would have been way ahead now .Instead, to protect domestic industrial sector it followed a closed economy and restricted the entrance of foreign investors, companies which could have increased competition and produced a healthy market where quality products could be available.

               Unfortunately Things didn‘t fall in place and India just got entangled in the vicious circle of poverty and status of a developing nation.

Monica Dhiman

Tries to express her thoughts, observations and whatever bothers her a lot in form of words :)


  1. The economic reforms that have been introduced in the recent times are at least forward looking..i guess it will be quite some time before we break out of the vicious cycle and start eradicating poverty ..and move to becoming the so called developed nations...

  2. yup reforms of 1991 helped India alot and they came into effect because of pressure from IMF.Narsimha Rao ,Varma,Chidamberam,Manmohan Singh are the people who brought but still there is need of reforms in labor market and FDI sector etc to take India forward.