History
India’s economic history can be traced back to Indus Valley Civilization that flourished between 2800 BC and 1800 BC. This civilization was quite advanced, it practiced agriculture, domesticated animals, used uniform weights and measurements, used and made tools and weapons and traded with other civilizations. Maritime trade was carried out between South India and southeast and West Asia from early times until 14th century AD. Malabar and Coromandal Coasts were important sites for trading centers from as early as 1st century BC, used for import and export activities. Jumping straight to pre-colonial economy, the Mughals functioned on a system of coined currency (gold, silver and copper coins were issued), land revenue and trade. The
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Domestic policy tended towards protectionism with a strong emphasis on import substitution. India adopted a semi-socialist economic model with few elements of capitalism. Five Year Plans of India resembled central planning in the Soviet Union. Jawaharlal Nehru, the first prime minister of India, oversaw the economic policies during the initial years of the country’s existence. Under Nehru’s leadership India saw low annual growth rate; it stagnated around 3.5% from 1950s to 1980s while per capita growth averaged to 1.3% a year. The costs associated with the partition weighed in heavy for the country, with 2 to 4 million refugees crossing the new borders. The division of the country also divided the economic zones, increasing the economic burden. Since 1950 India witnessed trade deficits which made it difficult to borrow loans from foreign sources. To combat this, the government issued bonds to the RBI, which increased money supply, which lead to inflation. Indo-Pak war, defense spending, droughts etc further lead to economic troubles and devaluation of the rupee. India continued to face serious food shortages, even towards the end of Nehru’s term. GDP per capita lowered to 41% in the 1980s (compared to 142% in the 1970s) and further fell to 20% in the 1990s. The emergence of populist policies like Nationalization of banks, insurance, and many other private sector companies, policies restraining …show more content…
When the USSR spilt into 15 nations, India’s primary buyer had vanished bringing down exports significantly. The Kuwait war also had a considerable impact on the Indian economy. Iraq and Kuwait, the countries involved in the war, were big suppliers of oil to the country. The war led to a reduction in oil import, increasing the prices substantially. On national level, the fiscal situation was destitute throughout the 1980s due to growing burden of non-development expenditure. The gross fiscal deficit of the central government rose to 7.8 % in 1990-91 from 5.1 % in 1981-82. To meet this deficit, the internal debt of the government increased, and the number struck 49.7 %( borrowing) of the GDP at the end of 1990-91. In 1990-91 interest payments had reached up to 39.1 % of the total revenue collections. The current account deficit which was $ 2.1 billion in 1980-81, rose to $ 9.7 billion in 1990-91. These deficits were financed from loans secured from foreign sources, leading India’s external debt rise from 12% to 23% of the GDP. The Gulf crisis (Kuwait war) stretched the Indian condition to a breaking point. In 1991 the foreign exchange reserves dropped to level which couldn’t finance import of even 10 days. The rate of inflation rose to 10.3 % from 6.7 % (1980s). Prices of food rose in spite of three good monsoons in a
When looking back on the changes and continuities of commerce throughout the Indian Ocean regions from 650 AD to 1750 AD, many noteworthy aspects can be seen. One such continuity was repeated usage of trade routes by different merchants and economic groups to import and export goods. Another significant change was the increase of involvement by European traders. Overtime they began to involve themselves more and more in the Indian Ocean trade networks and even began to colonize land.
The British empire had taken over many colonies, India refused to be one of them. Britain set up trading posts in three cities. One of those cities, the mughal empire collapsed and britain 's posts quickly took control. Britain found that India was very valuable with the resources that they could easily take and use to sell to the high population of India. Britain put the justice and military system into place for India which made an efficient profit for them and made them all in all knowledgeable.
Between 600 CE to 1750 CE, the process by which trade was conducted on the Indian Ocean changed dramatically. With the new maritime knowledge in the Indian Ocean, larger ships were able to connect Africa to the rest of the Indian Ocean network, leading to merchant Diaspora which continued throughout the era. From 1000 CE to 1400 CE, African city-states began to grow and led to an intensified trading network throughout the Indian Ocean. With this increase in cross-cultural interaction, new technology, ideas and diseases were exchanged.
Daniel Serrato HISTORY 111 Document and Essay Question assignment 7 1. What motivated and sustained the long-distance commerce of the Silk Roads, Sea Roads, and Sand Roads? Why did the peoples of the Eastern Hemisphere develop long-distance trade more extensively than did those of the Western Hemisphere? One thing that I noticed that motivated the long-distance commerce of the Silk Roads, Sea Roads, and Sand Roads was the fact that the elites were desired luxury items from distant parts of the Eurasian network.
Just as the Indian Ocean Basin helped spread religion to east and southeast Asia, similarly, the Silk Road spread Buddhism to southeast and central Asia. From this evidence, it is clear that the dynamics of cross-cultural exchanges in the Indian Ocean Basin was mainly through trade and
Although both India and China were colonized by the British, there were many differences between the two countries and the effects imperialism had on them. In the 1600s, the British East India Company gained trading rights for the Mughal empire which was in modern day India. As the Mughal empire lost power, the East India Company
Throughout history, nomadic herders from the steppes of central Asia have interacted with societies around them and influenced much of Eurasia. Around the 14th century, these nomadic herders were able to use their military prowess to conquer and dominate settled societies to build a vast empire for themselves. Mongol conquest and rule of China and the Middle East both differed in terms of systems of bureaucratic administration and trade-based interaction, but As the Mongols conquered China and the Middle East, they adopted different systems of bureaucratic administration to govern the people living in their newly obtained territories. In China, Mongols viewed the Chinese as mere cultivators, so they brought foreign administrators into China who were in charge of Chinese affairs.
In the 1600s, the British people took interest in India. In 1707 when the Mongol Empire was collapsing, which meant the British had a chance to take over. By 1857 Britain took full, direct control of India. Although the British developed a very strong army, they restricted the freedom of Indians, created national parks, but abused natural resources, and killed almost 60 millions people but brought modern medicine. When the British took over India, they took over pretty much the entire government and created laws that restricted the rights of the Indians.
In India they a plumbing and a sewage system. The reason why these inventions go into the economic category is because not every single person had these. Mostly the people who were wealthy could take advantage of these opportunities. In Egypt only the wealthy people and the Pharaohs got pyramids. In Mesopotamia the main thing people did was farm.
The conditions that the economy environment included, that is, the inflation, employment, monetary and fiscal policy… in a specific sector or region. The macro environment is closely linked to the general business cycle, as opposed to the performance of an individual business sector. -Physical factors: municipalities growth, population go to the regions are more developed, so we have to considerer what are these areas to create there our business. Climatic diversity, Zara knows this diversity so the clothes that it produces will be linked with the climatic of the region, for example, the North is cold, so the winter´s season arrives before.