• Indian economy was a vibrant and prosperous economy.
• Agriculturen sector ; it was a self-contained rural economy.
• Industrial sector : Our handicraft products were famous throughout the world.
• Exports enjoyed global reputation.
• Our silk and cotton textiles were famous for their fine quality.

* During British Rule :-

• Our agriculture sector was exploited as a source of revenue.
• Our industrial sector was destroyed by exploiting the domestic market for the British products. india became exporter of raw material and importer of finished goods from Britain.
• India’s foreign trade was in favour for British economy.

* Features of Indian Economy on the Eve of Independence :-

1) Stagnant Economy (रुकी हुई ) :- 

• Economy which shows little or no growth in income.
• British government never tried to estimate national income and per capita income but few individuals like Dadabhai Naoroji, William Digby, V.K.R.V.Rao and R.C. Desai attempted to estimate national income but their results were conflicting.
• Bulk of population lived in poverty.
• Low standard of living.
• Epidemics and Famines.

2) Backward Economy :- 

• Low per capita income (Rs.300) in 1947-48.
• Bulk of population was very poor, without sufficient food.
• Unemployment.

3) Dominance of Agriculture :- 

• 72% population was engaged in agriculture But its contribution to GDP was only 50%.
• Low production and productivity.
• Subsistence farming.

4) Bleak Industrialisation :- 

• Lack of basic and heavy industries.
• No production of machines.
• Small-scale and cottage industries were almost destroyed.
• For capital goods requirement, the Indian industry was dependent on imports from Britain.

5) Heavy Dependence on imports :- 

• Indian economy was dependent upon imports.
• Imports of machinery, armed forces, consumer goods like medicines, kerosene oil, bicycles etc.

6) Limited Urbanization :- 

• At the time of independence, only 14% of the population lived in urban areas while 86% lived in rural areas in 1948.

7) Semi-Feudal Economy :- 

• Indian economy was neither only feudal nor a capitalist economy.
• It was a mixed economy which has merits of both capitalist as well as socialist economy.