With the rule of British over two-century long Indian economic condition was at worse. Agriculture sector facing loss with low productivity, as agriculture became the main source of exporting raw material to England. Indian labour faced the unemployment scenario as production work was not done at that time. So India is having surplus labour and low productivity at that time. British ignored industrialization, so loss was great at that time. Industrial sector need a investment to improve economic condition of India. Indian were dependent on imports for their survival and gain from export are with British.. So Foreign trade sector was also suffering. Infrastructure need upgradation as railways and road at that time not enough to improve economic condition of India. Unemployment, poverty, air and water borne diseases were all high at that time, all these need the public expenditure.
Indian economic condition was not good and need a good economic and public policy to improve the condition prevailing at that time.