Colonial Rule and Its Effects on India's Rural Economy

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.

Irrigation Systems

Under the Mughals, only 5% of India's agriculture was under irrigated conditions but with 2 monsoon seasons, Kharif (June-Sept) and Rabi (Nov.-Jan.), rain-fed farming dominated. Creation of large tanks for storing rain-water for irrigation and drinking water since ancient times, by kings and other rulers, were common and the village administration maintained these tanks. Over time, these tanks fell into dis-repair and were neither de-silted nor maintained. In Fatehpur Sikri and Hampi, lifting and channeling of water for palaces and others, construction of large tanks in Deccan and Gujarat, Hauz Khas in Delhi and construction of canals near Delhi and Gaur (Bengal), are examples of the interest taken in public works. The Grand Anicut on the Cauvery by the Cholas in the 11th century AD is the world's oldest irrigation system still in use after a thousand years while Firozshah Tughlaq's water works system, connecting the Indus in Punjab with the Ganga-Jamuna system near Delhi, was a massive irrigation system with a 200 mile long canal connecting various towns and these canals even allowed navigation and water was used for irrigation. These canals enabled Haryana to grow winter crops like wheat, gram and sugarcane. The East India Company administration ensured that these ancient systems were repaired and restored many of them.

The restored irrigation systems were on the Jamuna Doab (1817-40), the Cauvery Delta (1830-40) and the Godavari Krishna Deltas (1840-50) by Sir Arthur Cotton. The company benefitted by increased land revenue, water rates and also by reducing the risk of famines. Thereafter, a huge amount of money was spent in Sind and Punjab for resettling army veteran soldiers so that there was a buffer against the Afghans but the economic value due to these canals on the Indus was huge as harvesting of wheat, cotton, sugarcane was possible on what was formerly deserts. However, it must be mentioned that the building of essential infrastructure such as canals, rail and roads systems, telegraphs and postal systems, formulated by Lord Dalhousie ensured the flow of more private capital flowed into India as investments from Britain. The Mahanadi canal, the Sone canal were example of canals which were not well- designed. Later, excellent canals built were the Agra canal and the lower Ganga canal in UP, the Sirhind Canal in Punjab and the Mutha Canal in Pune. But the canal investments by private companies did not prove to be remunerative and declined while investment for railways increased. However the large scale irrigation works ensured that minor millets like jowar, bajra and ragi gave way to cultivation of paddy wheat and sugarcane due to availability of water (Roy, 2006).