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 Textbook Questions and Answers
I. Choose the correct answers (each question carries 1 mark)
Question 1.
Whose estimate of per capita income of India during the colonial period was considered very significant?
(a) Dadabhai Naoroji
(b) VKRV Rao
(c) William Digby
(d) RC Desai
Answer:
(b) VKRV Rao.
Question 2.
Railway transport was introduced in India in the year________
(a) 1835
(b) 1776
(c) 1850
(d) 1853
Answer:
(c) 1850
Question 3.
The present ‘life expectancy’ of India is
(a) 32.4 years
(b) 63.6 years
(c) 64.8 years
(d) 66.9 years
Answer:
(d) 66.9 years
Question 4.
During British rule, more than half of India’s foreign trade was restricted to_
(a) Britain
(b) Iran
(c) China
(d) Sri Lanka
Answer:
(a) Britain
Question 5.
In India, the census is being carried out once in
(a) 5 years
(b) 10 years
(c) 1 year
(d) 2 years
Answer:
(b) 10 years
II. Fill in the blanks (each question carries 1 mark)
Question 1.
The share of the workforce that remained in agriculture during British rule was_____
Answer:
70 to 75%
Question 2.
Before Independence India’s jute industries were concentrated in____
Answer:
Eastern part (Bengal)
Question 3.
Under colonial rule, the cotton textile industries were dominated by____
Answer:
Indians
Question 4.
____ is the year of the second stage of the demographic transition of India.
Answer:
1921
Question 5.
___ transport is considered as the most important contribution of British rule.
Answer:
Railway
III. Answer the following questions in a word/sentence (each question carries one mark)
Question 1.
Name the important ‘revenue settlement system’ during British rule.
Answer:
Zamindari system was the important revenue settlement system during British rule.
Question 2.
Expand TISCO.
Answer:
Tata Iron and Steel Company.
Question 3.
What are ‘capital goods industries’?
Answer:
Capital goods industry refers to those industries which produce machine tools that are, in turn, used to produce other commodities for further consumption.
Question 4.
When was the first official census carried out in India?
Answer:
The first official census was carried out in India in the year 1881.
Question 5.
Why did the colonial government ban canal transport?
Answer:
The colonial Government banned canal transport as the measures taken for the development of inland. trade and sea lanes were far from satisfactory. The inland waterways proved uneconomical and failed to compete with the railways.
IV. Answer the following question in four sentences each (Each question carries 2 marks)
Question 1.
What was the objective of the economic policies pursued by the colonial government in India?
Answer:
The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country rather than with the development of the Indian economy.
The impact of such policies made a fundamental change in the structure of the Indian economy i.e., transforming the country into a supplier of raw materials and consumer of finished industrial products from Britain.
Question 2.
List out the important export goods of India before Independence. (S – 2018)
Answer:
The important export goods of India before independence were raw7 silk, cotton, wool, sugar, indigo, jute, etc.
Question 3.
What were the main causes of India’s agricultural stagnation during the colonial period?
Answer:
The agricultural stagnation during the colonial period was caused because of the following reasons:
(a) Land settlement system: The various systems of land settlement that were introduced by the colonial government were the major cause of agricultural stagnation during colonial rule in India.
(b) Revenue settlement: The terms of the revenue settlement were also responsible for the zamindars to adopt an aggressive attitude towards farmers. The British fixed the dates to deposit a specified sum of revenue, failing which the zamindars were to lose their rights. Apart from the above, low levels of technology, lack of irrigation facilities, and negligible use of fertilizers, etc., were also responsible for the stagnation of the agricultural sector during colonial rule.
Question 4.
Name the modern industries which were in operation in our country at the time of Independence.
Answer:
The modem industries which were in operation in our country at the time of independence were Tata Iron and Steel Company, cotton textile industry, jute industry, sugar industry, cement industry, paper industry, etc.
Question 5.
State the features of India’s pre-independence occupational structure.
Answer:
During British rule, the occupational structure of India i.e., distribution of working persons across different industries and sectors, showed little sign of change.
- The predominance of agriculture: The agricultural sector accounted for the largest share of the workforce, which usually remained at a high of 70 to 75%, and industry and service sectors accounted for 10 and 15 to 20 % respectively.
- Regional variation: The parts of the then Madras Presidency, Bombay, and Bengal saw a decline in the dependence of the workforce on agriculture and an increase in manufacturing and service sectors. But there was an increase in agriculture during the same time in Rajasthan, Punjab, and Orissa.
Question 6.
Mention the economic activities confined to the public sector in pre-independence India.
Answer:
The public sector was confined to railways, power generation, communications, ports, and some other departmental undertakings.
Question 7.
What were the infrastructure facilities developed during colonial rule? (N-2018)
Answer:
The main infrastructure facilities developed during the colonial mile were railways, ports, water transport, posts, and telegraphs. However, the real motive behind this development was not to provide basic amenities to the people but to subserve various colonial interests.
V. Answer the following questions in twelve sentences (Each question carries four marks)
Question 1.
The traditional handicraft industries were ruined under British rule. Justify this statement. (N-2018)
Answer:
Yes, the traditional handicrafts industries were mined under the British mile. The decline of the indigenous handicraft industries created not only massive unemployment in India but also a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods.
The British imposed heavy duties on Indian handicrafts so that they became more expensive than British woolen and silk manufacturers. They followed a policy of duty-free export of raw materials and import of finished goods. Apart from these, Indian handicrafts had to face competition from machine-made goods from Britain.
India could not develop a sound industrial base under colonial rule. Even as the country’s world-famous handicraft industries declined, no corresponding modem industrial base was allowed to come up to take pride in a place so long enjoyed by the Indians. The intention of British was to reduce India to the status of a mere exporter of important raw materials for the upcoming modem industries in Britain and to turn India into a market for their finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country.
Question 2.
Indicate the volume and direction of trade at the time of Independence.
Answer:
The volume of foreign trade includes the quantities of goods and services which were being exported and imported. The direction of trade refers to the countries which were involved during British rule. The volume and direction of India’s foreign trade at the time of independence are as follows:
During the regime of the colonial government, India became an exporter of primary goods like raw silk, cotton, wool, sugar, raw jute, etc., and an importer of finished consumer goods like cotton, silk, and woolen clothes and capital goods like light machinery produced by the factories at Britain.
Britain had maintained a monopoly over India’s exports and imports. As a result, more than half of India’s foreign trade was restricted to Britain, while the rest was allowed with a few other countries like China, Srilanka, Iran, etc. The opening of the Suez Canal further intensified British control over India’s foreign trade.
Question 3.
Explain the demographic profile of India during the colonial period. (Board Paper)
Answer:
The various details about the population of British India were first collected through a census in 1881. It revealed the unevenness in India’s population growth. Subsequently, every ten years census was conducted. Before 1921, India was in the first stage of demographic transition. The second stage of transition began after 1921.
During the British mile, the overall literacy level was less than 16%. Out of this, the female literacy level was at a negligible low of about 7%. Public health facilities were either unavailable to large chunks of the population or when available were highly inadequate. Consequently, water and air-borne diseases were common and took a huge number of deaths.
The mortality rate was very high and in that particular, the infant mortality rate was quite alarming i.e., it was 218 per thousand. The life expectancy was also very low i.e., 44 years in contrast to the present 68 years. There was also extensive poverty that prevailed in India during the colonial period which contributed to the worsening demographic profile of India during the British period.
Question 4.
What do you understand by the ‘Drain of Indian wealth’ during the colonial period? (S-2018)
Answer:
The most important feature of India’s foreign trade during British rule was the generation of a large export surplus. That means India’s exports exceeded its imports. It resulted in a disadvantage to the country’s economy.
The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.
The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war, again fought by the British Government, and the import of invisible items. This is known as the Drain of Indian wealth.
VII. Answer the following question in twenty sentences (each question carries 6 marks)
Question 1.
Explain the status of India’s agriculture during British rule.
Answer:
Indian Economy under British rule remained agrarian. About 85% of the country’s population lived mostly in villages and derived their livelihood directly or indirectly from agriculture. But, the agricultural sector continued to experience stagnation.
The agricultural productivity was very low though the area of cultivation expanded. The main reason was the land settlement system introduced by the colonial government. Under the zamindari system which was implemented in the then Bengal presidency comprising parts of India’s present-day eastern states, the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators. A considerable number of zamindars and the colonial governments did not improve the condition of agriculture. The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.
The terms of revenue settlement with zamindars made the zamindars to be strict in collecting land revenue from the actual cultivators even at the time of drought. This was mainly because, the zamindars were given dates for depositing specified sums of revenue, failing which the zamindars were to lose their rights.
Apart from these, low levels of technology. The lack of irrigation facilities and negligible use of fertilizers were also equally responsible for the bad status of agriculture during British rule.
Question 2.
‘India could not develop a sound industrial sector under colonial rule. Justify the statement.
Answer:
During British rule, India could not develop a sound industrial base. Even as the country’s world-famous handicraft industries declined, no corresponding modem industrial base was allowed to come up to take pride in a place so long enjoyed by the Indians. The intention of British was to reduce India to the status of a mere exporter of important raw materials for the upcoming modem industries in Britain and to turn India into a market for their finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country.
During the second half of the 19* century, the modem industry began to take root in India but its progress remained very slow. Initially, this development was confined to the setting up of cotton and jute textile mills. A few other industries in the fields of sugar, cement, paper, etc., came up after 1945.
There were very few capital goods industries to help industrialization in India. Capital goods industry’ means industries that can produce machine tools that are, in turn, used for producing articles for current consumption. The establishment of a few manufacturing units here and there was no substitute for the near wholesale displacement of the country’s traditional handicraft industries.
Another drawback of the new industrial sector was the very limited area of operation of the pub! ic sector. This sector remained confined only to the railways, power generation, communications ports, and some other departmental undertakings.
Question 3.
Write a note on the development of infrastructure in India during the colonial period.
Answer:
During British rule, basic infrastructure like railways, ports, water transport, posts, and telegraphs was developed. However, the real motive behind this development was not to provide basic amenities to the people but to subserve various colonial interests.
The road transport constructed in India prior to the advent of British rule was not fit for modem transport. The roads that were built primarily served the purposes of mobilizing the army within India and drawing out raw’ materials from the countryside to the nearest railway- station or the port to send these too far away from England or other lucrative foreign destinations. There was a severe shortage of all-weather roads.
Railway transport was introduced by: the British in 1850. It is considered as one of the important contributions. The introduction of railways by the British brought two important changes. It enabled the people to travel long distances and thereby break cultural barriers. It also leads to the commercialization of Indian agriculture which adversely affected the self-sufficiency of the village economies. Whatever advantages the people gamed owing to the railways, were outweighed by the country’s enormous economic loss.
Apart from railway transport, the British also took measures for the development of inland trade and sea lanes. The inland waterways, at times, also proved uneconomical as in the case of the coast canal on the Orissa coast. Though the canal was built at a huge cost to the government exchequer, yet, it failed to compete with the railways, which soon traversed the region running parallel to the canal and had to be ultimately abandoned.
The introduction of the electric telegraph also served to die purpose of maintaining law and order. The postal services, despite serving a useful public purpose, remained insufficient.
Question 4.
Were there any positive contributions made by the British in India? Discuss.
Answer:
Yes. though the British mile in India was with a selfish motive, there were some positive contributions towards India’s later economic growth. The major positive contributions were as follows:
(a) Introduction of Railways: The Introduction of railways by the British is considered as one of die most important contributions to India. The railways affected the structure of the Indian economy. It enabled people to undertake long-distance travel which broke geographical and cultural barriers. It also led to the commercialization of Indian agriculture.
(b) Infrastructural development: Under the colonial regime, apart from railways, ports, water transport, posts, and telegraphs were also developed. These indirectly helped many Indians to make use of the same for their routine activities.
(c) Change in occupational structure: During the colonial period, the occupational structure of India i.e., the distribution of the working population across different sectors showed little sign of change.
(d) Industrialisation: During the second half of the 19th century7, the modem industry began to take root in India. Hie Tata Iron and Steel Company was incorporated in 1907. Other industries in the field of sugar, cement, paper, etc., also came up. This intensified the policy of industrialization after independence.
The structure of India’s present-day economy is not just of current making, it has its roots steeped in history, particularly in the period when India was under British mile. The present systems of administration, judicial procedure, defense, etc., are the gifts of the British to the Government of India. In fact, many laws made by the British are being followed even today.
1st PUC Economics Introduction Additional Questions and Answers
Question 1.
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
Answer:
The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country than with the development of the Indian economy.
The impact of such policies made a fundamental change in the structure of the Indian economy i.e., transforming the country into a supplier of raw materials and consumer of finished industrial products from Britain.
Question 2.
Name some notable economists who estimated India’s per capita income during the colonial period.
Answer:
Dadabhai Naoroji, VKRV Rao, William Digby, Findlay Shirras, and RC Desai were some notable economists who estimated India’s per capita income during the colonial period.
Question 3.
Name some modern industries which were in operation in our country at the time of independence.
Answer:
The modem industries which were in operation in our country at the time of independence were Tata Iron and Steel Company, cotton textile industry7, jute industry, sugar industry, cement industry, paper industry, etc.
Question 4.
What was the two-fold motive behind the systematic deindustrialization affected by the British in pre-independent India?
Answer:
The two-fold motive behind the systematic de-industrialization effected by the British in pre-independent India was as follows:
- Firstly, to reduce India to the status of a mere exporter of important raw materials for the upcoming modem industries in Britain.
- Secondly, to turn India into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country.
Question 5.
What objectives did the British intend to achieve through their policies of infrastructure redevelopment in India?
Answer:
During the British regime, basic infrastructure like railways, ports, water transport, posts, and telegraphs was developed. But the real objectives behind this development were not to provide basic amenities to the people but to subserve various colonial interests.
The main objectives behind the infrastructural development can be discussed as under:
(a) The roadways constructed by the British to mobilize the army within India and to draw the raw materials from the countryside to the nearest railway station or port.
(b) The British were keen on the construction of railway lines to supply raw materials to the ports and to distribute the finished goods from the ports. This fostered the commercialization of Indian agriculture also, which affected the self-sufficiency of the village economies in India.
(c) The British introduced posts and telegraphs for effective administration.
(d) Though the British attempted to improve infrastructural facilities these efforts were filled with selfish motives.
Question 6.
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.
Answer:
India could not develop a sound industrial base under colonial rule. There were many shortfalls of the industrial policy pursued by the British colonial administration.
These can be discussed as follow’s:
(a) Decline of handicraft industry: The primary motive of the industrial policies of the British was to de-industrialize India systematically. This made the Indian handicraft industry face retrenchment and shut down. The decline of handicraft industries created not only massive unemployment in India.
(b) Lack of capital goods industry: There was hardly any capital goods industry to help and promote industrialization in India. The capital goods industry is the industry’ which produce machines, tools, etc., which in turn could be used to produce goods for current consumption. The British government did not encourage much to establish these industries.
(c) Limited role of the public sector in the industrial sector: It is another significant drawback of the new industrial sector. The new industrial sector was a very limited area of operation in the public sector.
(d) Less encouragement to large scale industries: The British industrial policy did not encourage modem large scale industries. There were very few cotton textile and jute industries. There were insufficient iron and steel, sugar, cement, and paper industries during British rule.
Question 7.
Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?
Answer:
1921 is regarded as the defining year to mark the demographic transition from its first to the second decisive stage.
Question 8.
Give a quantitative appraisal of India’s demographic profile during the colonial period.
Answer:
The details about the population of British India were first collected through a census in 1881. Before 1921. India was in the first stage of demographic transition. The second transition began after 1921. However, neither the total population of India nor the rate of population growth at this stage was very high.
The overall literacy level was less than 16% and the female literacy rate was about 7%. Public health facilities were inadequately available and so the mortality rate was very high. The infant mortality rate was about 218 per thousand live births in contrast to 43 at present. Life expectancy was at 32 years in contrast to 68 years at present. Above all, extensive poverty prevailed in India during the colonial period which contributed to the worsening profile of India’s population of that time.
Question 9.
Highlight the salient features of India’s pre-independence occupational structure.
Answer:
During British rule, the occupational structure of India i.e., distribution of working persons across different industries and sectors, showed little signs of change.
- The predominance of agriculture: The agricultural sector accounted for the largest share of the workforce, which usually remained at a high of 70 to 75%, and industry and service sectors accounted for 10 and 15 to 20 % respectively.
- Regional variation: The parts of the then Madras Presidency. Bombay and Bengal saw- a decline in the dependence of the workforce on agriculture and an increase in manufacturing and service sectors. But there was an increase in agriculture during the same time in Rajasthan, Punjab, and Orissa.
Question 10.
Underscore some of India’s most crucial economic challenges at the time of independence.
Answer:
The British rule had coursed many economic challenges at the time of independence. They are as follows:
(a) Low agricultural productivity: Before independence, the British had used Indian agriculture to suit their own interest. As a consequence, the Indian agricultural sector experienced stagnation, low level of productivity, lack of investment, poor condition of landless farmers. It was a major challenge for the new government after independence to solve low agricultural productivity.
(b) Decline in the industrial sector: Indian economy could not get sufficient support during British rule for the development of the Industrial sector. There was severe competition from the British Industries as their goods were imported at free import duties. Further, they ruined our domestic industries which made it a big challenge to develop the same.
(c) Poor infrastructure: Though the British had focused on the development of infrastructural facilities like road transport, railways, ports, and telegraphs, it needed up-gradation, expansion, and public orientation.
(d) Rampant poverty and unemployment: Poverty and unemployment were the major challenges of India at the time of independence. India was trapped in the vicious circle of poverty which leads to inequality in the distribution of income and wealth.
Question 11.
When was India’s first official census operation undertaken?
Answer:
India’s first official census operation was undertaken in the year 1881.