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At the time of independence in 1947, the Indian economy was characterized by widespread poverty, low levels of industrialization, an overwhelming dependence on agriculture, and a colonial economic structure that primarily served the interests of the British Empire rather than the development of India. Nearly two centuries of colonial rule had shaped the economy in ways that weakened domestic industries, limited technological advancement, and created structural imbalances across sectors. The economic condition inherited by independent India was therefore marked by stagnation, inequality, and underdevelopment. One of the most important characteristics of the Indian economy at independence was its heavy dependence on agriculture. A very large proportion of the population, nearly 70 to 75 percent, depended on agriculture and allied activities for their livelihood. However, the agricultural sector was extremely backward in terms of technology, productivity, and infrastructure. Farming was largely based on traditional methods using wooden ploughs, bullock power, and manual labour. The use of modern inputs such as fertilizers, irrigation systems, improved seeds, and agricultural machinery was extremely limited. Agricultural productivity was very low, and the sector was vulnerable to fluctuations in rainfall since a large part of agriculture was dependent on the monsoon. Frequent droughts and floods often resulted in food shortages and famine-like conditions. Another major feature of the Indian economy at independence was the prevalence of widespread poverty. A large portion of the population lived below the subsistence level. Per capita income was extremely low, and the distribution of income and _____ ________ ___ __________ _____ ________ _________ _______.
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