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Karnataka 1st PUC Economics Question Bank Chapter 1 Indian Economy on the Eve of Independence
1st PUC Economics Indian Economy on the Eve of Independence Text Book Questions and Answers
What was the state of agriculture in mid-eighteenth century in India?
a. In mid-eighteenth century agriculture was the main source of livelihood, land was in abundance and the population was limited. So most of the people were engaged in agriculture. The surplus over the family requirements was exchanged with other commodities of requirements.
b. The fanners mainly produced food grains for their survival. The production of cash crops, such as jute, cotton, sugarcane, etc., was limited.
c. Production for the market was not the idea behind farming.
d. Methods and techniques of production were old and backward. It involved more physical work for people and animals.
e. Agricultural society was predominantly feudal in character. The cultivators used to pay land revenue to the rulers. There was heavy rate of land revenues Very little was left with the peasants after their hard labour.
Industrial base was allowed to come up to be pride place so long enjoyed by the farmer.
1. Low erade modern industrial structure:
The progress of modem industry remained very slow. British meters neither permitted modernisation of industries nor they encouraged the growth of heavy industries in India.
2. Lacking of capital goods industries:
Capital goods were lacking. There was hardly any capital goods industry to help or promote further industrialisation in India. There were a few manufacturing units here and there. But they were no substitute to the near wholesale displacement of the country’s traditional handicraft industry.
3. Limited operation of the public sector:
Another significant drawback of the new industrial reach was the very limited area of operation of the public sector. This sector remained confined only to the railways, power generation, communication, ports, and some other departmental undertakings.
What was two fold motive behind systematical industrialisation effected by British in pre-independence India?
The twofold motive behind systematical industrialisation effected by British are following:
- To make India exporter of raw material.
- To turn India into major consumer of finished goods.
What objectives did the British intend to achieve through their policies of infrastructure development in India?
What were the objectives of British Government in bringing about infrastructure change in the Indian economy?
Under the colonial period, there was development of roads, railways, ports, water transport, posts, and telegraphs. The motive behind this development was not to provide basic amenities to the people but to serve colonial interest in the construction of roads to serve the interest of mobilising the army within India and drawing out raw materials from the countryside to the nearest railway station or the port to send these to faraway England and other countries.
There always remained an acute shortage of all weather roads to reach into the rural areas during the rainy season. The Britishers introduced railways in India in 1853. It is the most important contribution of Britishers in India. The railway affected the structure of Indian economy in many ways. It helped the people go to distant places and in commercialisation of agriculture.
The volume of India’s, foreign trade expanded but its benefits rarely reached the Indian people. The colonial rule also developed the Indian waterways. The introduction and expansion of electric telegraph system in India served the purpose of maintaining law and order. The postal services served a useful public purpose.
Name some modern industries which were operation in our country at the time of independence?
List some modem industries which were in operation during the British rule?
At the time of independence, there were cotton and jute textile mills in India, the cotton textile mills were located in the western parts of India namely Maharashtra and Gujarat. The jute mills were mainly concentrated in Bengal, the iron and steel industry began coming up in the beginning of 20thcentury. There were few other industries like sugar, cement, paper, etc., at the time of independence.
What was the two-fold motive behind his systematic de-industrialisation effected by the British pre-independence India?
How was the systematic de-industrialisation done in pre-independence era?
Before independence, India’s industries were very famous throughout the world. Under the colonial rule, the country’s world famous handicraft industries declined. The primary motive of the colonial Government behind the policy of systematically de-industrialising india was two fold.
1. The intention was first to reduce India to the status of a mere exporter of important raw material for the industries in Britain.
2. To turn India into a market of finished product of those industries which were established in Britan. At the time of independence, there were very few industries in India. The systematic de-industrialisation created unemployment in India.
The traditional handicrafts industries were ruined under British rule. Do you agree with this view? Give reasons in support of your answer.
Durihg the British rule country’s world famous handicraft industries declined. These handicrafts were very famous throughout the world. These traditional handicrafts got set back during the colonial rule. The Britishers wanted materials for the upcoming modem industries in Britain. They wanted to turn India into a sprawling market for the finished products of those same industries to ensure their continuous expansion to the maximum advantage of their native home country.
What objectives did the British intend to achieve through their policies of infrastructure development in India?
Objective to be achieved through the policies of infrastructure development under the colonial regime Basic infrastructure such as railway, ports, water transport, posts, and telegraph developed. The main objectives of development of these structure were as follows:
1. Mobilising the army:
Roads were built for mobilising the army with in India.
2. Drawing out raw materials:
The roads we built for drawing out raw materials from the countryside to the nearest railway station or the port to send these to faraway England.
3. Earning profits:
For earning profits through foreign trade railways were linked as with major ports and marketing centres.
4. Effective control on administration:
Improper administration and military centres were linked through railway lines for having effective control and administration over the vast Indian territory.
Critically appraise some of the short falls of industrial policy pursued by the British colonial administration.
Following were some of the short falls of industrial policy pursued by the British colonial administration.
India could not develop a sound industrial base under the colonial rule. Even the country’s world famous handicraft industries declined. No corresponding modem.
What do you understand by the drain of Indian wealth during the colonial period?
Dadabhai Naoroji propounded the theory of ‘Drain of Wealth’ in the 19th century. The colonial period was characterized by the exploitation of Indian resources. The primary motive of Britain was to own a perennial source of cheap raw material to feed its own industrial base in Britain.
On the other hand, income of Indians was spent on expensive imports of finished goods from Britain which made Britain richer at the expense of India. Further, British Government used India’s manpower to spread its colonial base outside India. Indians served in the British army at lower salaries than their British counterparts.
Also, the expenses of war and administrative expenses that were incurred by the British Government to manage the colonial rule in India were drawn from the revenue collected from Indians and the export surplus generated through foreign trade of India. Thus, the British rule drained out Indian wealth for the fulfillment of its own interests.
What was the motive behind the infrastructure development during the British rule?
The real motive behind the development of roads, railways, ports, water transports, post and telegraph, etc was not to provide basic amenities to the people but to serve various colonial interests.
Give a quantitative appraisal of India’s demographic profile during the colonial period.
India’s demographic conditions during the British rule depict our economy as stagnant and backward. Due to high birth rate and high death rate the population growth was stagnant before 1921, the Infant Moratality Rate was also very high at about 218 per thousand which today stands at 47.57 per thousand. The life expectancy rate was low at 32 years while presently, it is around 66.8 years.
The literacy rate was less than 16% with female literacy rate of just 7% which denotes social backwardness and gender bias in the economy. We can infer from the above figures that India was featured with massive poverty, low standard and quality of living and low survival rate in the country. The lack of health care facilities and lack of health awareness were the main causes behind such demographic conditions of India.
Highlight the salient features of Indian pre-independence occupational structure?
Features of India’s pre-independence occupational structure. The following were the features of India’s pre-independence occupational structure.
1. Pre-dominance of agricultural sector:
During pre-independence period agriculture was pre-dominant About 85% population of the country lived mostly in villages and.derived their livelihood directly or indirectly from agriculture.
2. Regional variation:
There was growing regional variation The cotton textile mills mainly dominated by Indian’s were located in western parts of the country namely Maharashtra and Gujarat. The jute mills dominated by foreigners were mainly concentrated in Bengal.
3. Unbalanced growth:
There was unbalanced growth in the economy. All the sectors of the economy were not growing equally during the second half of the 19th century. Modem industry began to take root in India but its progress remained Very slow. There was hardly any capital goods industry to help and promote further industrialisation in India the growth of the new industrial sector and its contribution.
Underscore some of India’s most crucial economic challenges at the time of independence.
The exploitative colonial rale created a damaging effect on almost every sphere of Indian Economy. As a result, India faced major economic challenges at the time of independednce such as:
1. Low Agricultural Productivity:
During the colonial rule Indian agricultural sector was exploited by the British to serve their own interest. As a result, Indian agricultural sector experienced stagnation, low level of productivity and lack of investment in technology, fertilizers and irrigation facilities. This resulted in poor condition of landless farmers and peasants. Commercialization of agriculture created shortage of food gains in India.
Thus, the immediate concern for India was to develop its agricultural ., sector and its productivity to become self – reliant and ensure food security for people. Some v of the immediate reforms needed at die time of independence were abolition of zamindari system, heed of land reforms, reducing inequality of land ownership and upliftment of the peasant’s apart from increasing the use of fertilizers and better technology.
2. Under-developed Industrial Sector:
India Med to develop a sound industrial base during the colonial rule. There was a need of huge capital investments, infrastructure, human skills, technical know – how and modern technology for industrialization. Further, due to stiff competition from the British industries, India’s domestic industries had failed to sustain.
Thus, development of small scale and large scale industries simultaneously while facing capital shortage was matter of concern for india. The need to increase the share of industrial sector to India’s GDP was one of the important economic challenges for India.
3. Inadequate Infrastructure:
Although, the British brought about significant infrastructural development in the country, but k was done only for serving their interests and was not sufficient to improve the performance of Agricultural and industrial sector in the country. Also, there was a need to upgrade and to modernize the existing infrastructure to enhance connectivity.
4. Poverty and inequalities
India was trapped in the vicious circle of poverty and inequality. The colonial rule drained out a significant portion of India’s wealth to Britain. Consequently, majority of India’s population was living in abject poverty. Economic inequalities were present across the country due to the different economic classes that had emerged due to British policies like zamindari system.
What do you mean by Colonialism?
The practice of acquiring colonies by conquest or other means and making them dependent was one of the ways to extend political and economic life of areas outside its borders.
Indicate the volume and direction of trade at the time of Independence?
Before independence India had extensive trade relations with other countries of Asia and Europe. India’s exports were cotton textiles, raw silk, and silk fabrics. Indigo, rice, wheat, sugar, Pepper and spices, precious stones.
Lac, mica, opium, and drugs Imports consisted of pearls, Wool, dates, dry fruits, glass, iron and steel, copper, lead, tinhorn paper, perfumes, etc., The cotton textile of India enjoyed a worldwide reputation and the demand for cotton textiles was all over the world. India exported more than it imported it had a favorable balance of trade, large quantities of gold and silver flowed into India. India enjoyed a very important and unique position in world trade.
Were there any positive contribution made by the British in India? Discuss.
Discuss the positive contribution of the British Rule in India?
The contribution of the British rule can be studied as follows:
- Development of means of transport, especially railway and communication.
- Political and economic unification of the country.
- Evolution of banking and monetary system.
- Introduction of the modem techniques of production and management.
- Evolution of new social order based on progressive ideas.
- Stability, peace, and order.
- Emergence of market economy and capital enterprise.
- Introduction of new system of education.
- Establishment of civil laws and courts.
1st PUC Economics Indian Economy on the Eve of Independence Additional Questions and Answers
1st PUC Economics Indian Economy on the Eve of Independence Very Short Answer Type Questions
Define Tertiary Sector?
Tertiary sector maybe defined as that sector which includes trade and commerce transport storage communication, trade, financing, etc.,
What is meant by subsistence agriculture?
Subsistence agriculture means producing crops for self-consumption rather then for marketing.
Define occupational Structure?
Occupational structure refers to distribution of working population across primary secondary and tertiary sectors of the country.
What do you mean by commercialization of Agriculture?
Commericalization of agriculture means producing crops for the market rather then for self consumption.
What was the purpose of the British colonial rule in India?
The sole purpose the British colonial rule in India was to reduce it into a Feeder economy for Great Britian’s own rapidly expending industrial base.
What is productivity in Agriculture?
Productivity in agriculture means output per hectare of land.
Name the economists who estimated Indians per capita income during the colonial period?
V.K.R.V. Rao, DadaBhaiNaoroji, Findlary Shilar, WilliamDigby, R.C.DesaiRao, etc,,
What type of Indian economy was at the time when Britishers came to India.
Agriculture was the main source of income and livelihood for most people.
What was the main aim of the Zamindars?
The main interest of the Zamindars was only to collect rent regardless of the economic condition of the cultivators causing immense misery and social tension.
What is meant by Infant Mortality Rate?
Infant Mortality rate is death rate of children below the age of one year.
What was the main causes of stagnation-lathe agricultural sector during the British rule?
The stagnation of the agricultural sector was caused mainly because of us systems of land settlement introduced by the colonial Government.
What is life expectancy?
Life expectancy means average life of a person.
What was the state of secondary sector of the Indian economy on the era of independence?
On the era of independence barely 9.0 percent of the working population in India was engaged in manufacturing industries etc. It suffered systematic destruction during British rule. It was largely due to discriminatory policy of the Government.
What was the adverse effect of partition at the time of independence?
A sizeable portion of the undivided country’s highly irrigated and fertile land went to Pakistan.
What was the intension of the British regarding industrial development in India?
The intention was to reduce India to the status of a mere exporter of important raw material, for the upcoming modem industries in British and to turn India into a market for the finished product.
When did India achieve Independence?
India achieved independence on 15th August 1947.
Why was the population growth rate not high before 1921?
Poverty, malnutrition and poor health facilities were the main causes for slow growth rate of population.
Which industries were set up in India during the second half of the 19th Century?
Cotton and Jute Mills were set up in the Eastern part of the country which were dominated by the foreigners and textile industry in Maharashtra and Gujarat.
What are primary occupations?
All activities connected with procuring gathering or producing things from material provided by nature are called primary occupation.
Which industries were set up in India after the second world war?
Steel, sugar, cement, paper industries were set up in India after the second world war.
Name the first steel industry of India?
The first iron and Steel company and Tata Iron Steel Company were established in Jamshedpur. The plant began production in 1912.
What activities are included in a Primary Sector?
In primary sector occupations like gathering, fishing grazing or rearing of animals, agriculture, lumbering, mining, etc., are included.
What are Capital Goods Industries.
Capital goods industries means industries which can produce machine tools used for producing articles for current consumption.
What is a Secondary Sector?
The sector of the economy engaged in the manufacturing, processing, construction, electricity gas and water supply are known as secondary sector.
What factors are responsible for limited foreign trade of India.
The restrictive policies of commodity, production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s foreign trade.
What was the objective of Britisers to develop roads in India?
The roads that were built primarily serve the interests or mobilising the army within India and drawing out raw material from the countryside to the nearest railway station or the port.
When was India’s first official census operation undertaken?
India’s first official census took place in 1881.
Why was half of India’s foreign trade restricted to Britain in pre-independence period?
For all practical purposes Britain maintained a monopolistic control over India’s exports and imports as a result, more than half of India’s foreign trade was restricted to Britain.
What was the main characteristic of Indian Foreign trade throughout the colonial period?
Throughout the colonial period there was the generation of a large export surplus.
Why is 1921 important year in demographic history of India?
1921 is considered as the defining year before 1921 India was in the first stage of demographic transition, the second stage of transition started after 1921.
What are the invisible items of balance of Payment?
Invisible items are services like tourism, transport by shipping or by airways and financing services such as insurance and banking. They also include gifts and interest profits and dividend.
What is Tariff?
A tax or duty on import which can be Levied either on physical units eg. per tonne or on value Tariff may be imposed for a variety of reasons including to rise Government revenue, to protect domestic industry or law, wage, imports to boost domestic employment or to reduce a deficit on the balance of payment.
Write down the three causes which were responsible for the slow growth of population during colonial period?
Poverty, malnutrition and poor health.
What is the first stage of demographic transition?
In the first stage birth rate and death rate are high and there is very slow population growth and death rate is high because of lack of knowledge of disease prevention and cure and food shortages.
Which sector accounted for the large share of workforce during the colonial and what was its share?
The agriculture sector accounted for the largest share of workforce during the colonial period and its share was 70-75 percent.
What is considered as the most important contribution of the Britishers?
The introduction of railways in India is considered as the most important contribution of the Britishers.
What were the main characteristics of Indian economy before the British rule in India?
The village community was self sufficient, had fairly developed system of handicraft trade relationship with outside world. Developed indigenous banking and a favourable balance of trade.
When were railways introduced in India?
Railways were introduced in 1850.
When were the various details about the population of British first collected through a census.
After how many years are census operation carried out in India?
After every ten years.
When was India in the first stage of demographic transition?
Before 1921 India was in the first stage of demographic transition.
When did the second stage of demographic transition begin in India?
Name the various social development indicators?
The various social development indicators are literacy level, public health facilities, life expectancy, low infant mortality rate.
How did the railways affect the structure of the Indian economy?
The railways affected the structure of the Indian economy in two important ways First it enabled people to undertake long distance travel land thereby break geographicall and cultural barriers Secondly it fostered commercialisation of Indian agriculture.
When was the Tata Airlines established in India.
Tata Airlines was established in 1932 in India.
Name the three land settlements formulated in India during the colonial period?
The three land settlements formulated in India during the colonial period were
- Zamindari system
- Ryotwari system and
- Mahalwari system
What caused immense misery and social tension among the cultivators during. colonial?
Collecting rent from the cultivators by the zamindars regardless of their economic condition caused immense misery and social tension among the cultivators.
What is Muslin?
Muslin is a type of cotton textile which its origin in Bengal particularly places in and around Dhaka (now the capital city of Bangladesh).
What is Mulmal?
The finest variety of muslin was called Mulmal.
What is Per Capital Income?
Per capita income is the average income per come It is calculated by dividing national income by population.
Per capita income = National income , Population
When did modern industry begin to take root in India?
Modem industry began to take root in India during the second half of the 19th century.
What does MuImalShahi/MalmalKhas imply to?
Mulmal Shahi or Mulmal k has implied that it is worn by or fit for the royalty.
Where were cotton textiles located during the second half of the 19th century? Who dominated those textile industries?
Cotton industries were located in the western part of the country namely Maharashtra and Gujarat. Indian’s dominated the textiles.
In which part of India were jute mills mainly concentrated? By whom were those mills dominated?
Jute mills were mainly concentrated in Bengal they were dominated by foreigners.
Where were jute mill concentrated?
Jute mill were concentrated in Bengal.
By whom were jute mill situated in Bengal dominated in colonial rule?
Jute mills situated in Bengal were dominated by foreigners.
1st PUC Economics Indian Economy on the Eve of Independence Short Answer Type Questions
What was the impact of partition of agriculture at the time of independence?
India’s agricultural production received a set back due to the country’s partition at the time of independence, sizeable portion of the undivided country’s highly irrigated and fertile land went to Pakistan which impacted adversely upon agricultural production The whole of the jute producing area become part of East Pakistan (Now Bangladesh). India’s jute industry suffered heavily for lack for raw materials.
What were the important features of Industries before the British rule in India?
There were small production units in which machines and equipment were of old style. These production units produced goods in small quantities.
There was simple division of labour, division of work was restricted on the basic of caste There were very limited chance of discoveries inventions and innovations. The simple and cheap technique deprived us of industrial development.
How did the French traveller Bernier describe 17th century Bengal?
The French traveller Bernier describes 17th century Bengal in the following way ‘The knowledge I have acquired of Bengal in two visits inclines me to believe that it is richer than Egypt. It exports, in abundance cotton and silk, rice, sugar, and butter. It produces amply for its own consumption wheat, vegetables, grains, food, alcohol and grains, fowls ducks and geese It has immense herds of pigs and fish, sheep and goats. Fish of every kind, it has in profusion.
State the various forms of colonial exploitation of the Indian economy during the British Raj.
Various forms of colonial exploitation of the Indian economy during the British Raj are
1. Colonial exploitation of agriculture sector:
Agriculture was exploited though Zamindari system of land revenue. Zamindars were declared as owners of Land. They were to pay a fixed sum to the Government by way of land revenue They were free to extract as much as they wished from tillers of the soil.
2. Colonial exploitation of industrial sector:
Handicrafts dominated in Indian economy before British rule. They were system actically destroyed by allowing tariff-free import of machine made goods from Britain.
3. Colonial exploitation of international trade:
India’s international trade was exploited through discriminatory tariff policy, duty free export of Indian raw material and dutyfree import of British goods were encouraged for the benefit of British rule.
1st PUC Economics Indian Economy on the Eve of Independence Long Answer Type Questions
What were the main causes of Indian’s agricultural stagnation during the colonial period?
India’s economy under British rule remained fundamentally agrarian. About 85 percent of the country population who lived mostly in villages was deriving their livelihood from agriculture. The productivity in agriculture during the British rule was low. There were certain factors responsible for it. They are:
1. The stagnation of agriculture sector was caused mainly because of the various systems of land settlement in India.
2. Under the Zamindari system which was introduced by the Britishers, the profits accuring out of the agricultural surplus went to the Zamindars instead of the cultivators.
3. The British Government did nothing to improve the condition of agriculture.
4. There was immense misery and social tension among the cultivators because of the exploitation by the zamindars.
5. Low level of technology, lack of irrigational facilities and the use of negligible amounts of fertilizers were also responsible for low production in agriculture.
What was the focus of the economic policies persued by the colonial government in India? What were the impacts of these policies?
The focus of the economic policies persued by the colonial Government was the protection and promotion of economic interest of her home country. These policies intended to transform India into supplier of raw materials and consumer of finished industrial products from Britain.
Impact of policies:
The impacts of these policies were as under:
- India become supplier of raw materials and consumer of finished goods produced in Britan.
- The agriculture sector continued to experience stagnation and deterioration during British rule.
- The vast majority of people in India led a miserable life.
- Many of the cottage and small scale industries declined under the British rule.
- More than half of India’s foreign trade was restricted to Britain.
- The country’s growth of aggregate real output during the first half of the 20th century was less than this percent.
- There was hardly any capital goods industry to promote further industrialisation of India.
- The contribution of new industrial sector to the gross domestic product remained very small.
- The industrial sector cried for modernisation and diversification.
- There was rampant poverty and unemployment.