Impact of 1947 partition on Indian Economy
Before leaving India,the british gave her death blow by partitioning India.With the partition,77% of the territory and nearly 82% of the population of undivided India was left with India.The rest went to Pakistan.Partition affected our economy in following ways:
1. Some of the important industries,namely the jute and cotton were adversely affected.Due to partition,important raw jute and cotton growing areas went to east Pakistan(now called Bangladesh),while the mills were located in India.
2. Shortage of raw material was also experienced by the paper,leather tanning and some chemical industries in wake of partition.
3.Partition resulted in loss of market by creating a gap in demand,for products like cotton textile,glass,aluminium,vegetable oils,rubbere goods,foot wear etc.,which used to come from areas now went to Pakistan.
4.Partition led to migration of skilled labour force from the country.
5.Partition resulted in dislocation of transport and communication facilities in the country.The railway network of undivided India was also disrupted by partition,indian union obtaining 24,565 miles and Pakistan 6,748 miles.
6.Imidiately after partition,there was an atmosphere of uncertainity and suspense.This seemed to have shaken the confidence of private enterprises in the country affecting the level of investment adversely.