Features of Indian economy at the time of independence : Due to British economic policies, at the time of independence, Indian economy was stagnant, semi-feudal, backward, and agriculture based. 

Therefore, the main characteristics of Indian economy at the time of independence were the following :

• Underdeveloped Economy : At the time of independence, Indian economy was underdeveloped. Percapita income and status of industrial development was low. Dependence on agriculture was more and basic infrastructure was backward. Dependence on import was greater and social challenges like poverty, unemployment and illiteracy rate existed in India. . 
• Stagnant Economy : At the time of independence, the speed of development on Indian economy was obstructed, agricultural production and productivity was less, development rate was low, tendency of exploitation was high and Indian industries had declined. Technical development had become inert. 
• Semi-feudal Economy : The British government encouraged Zamindari System, Mahalwari Settlement and Jagirdari Settlement, etc. for the ownership of land and adopted a capitalized system in the economy. As a result of this, intermediaries were created and these intermediaries exploited the farmers and transformed the skilled Indian workers and farmers into merely salaried labours and servants. 
• Backward Economy : As a result of excessive exploitation of resources in the British rule, the production capacity declined. Modem industries lagged behind, and social and economic infrastructure declined. 
• Effect of Partition : The country was divided into India and Pakistan on 15th August 1947. As a result of it, India received 77 per cent land and 82 per cent population. The partition did not favour India from the point of view of agriculture, but it was favorable from industrial point of view.. However, the fertile area which produced industrial raw material went in the hands of Pakistan.