Final answer:
On the eve of independence, India's economic condition was stagnant, characterized by low average income levels and limited industrial development. However, after gaining independence, India implemented policies that led to significant progress.
Step-by-step explanation:
The economic condition of India on the eve of independence can be described as stagnant. India had a primarily agrarian economy with low average income levels and limited industrial development. The country faced poverty, low productivity, and lack of infrastructure. However, after gaining independence, India implemented economic policies aimed at fostering growth and development, leading to significant progress in subsequent years.