1st Chapter

Indian Economy On The Eve Of Independence

1. Among the following estimators whose estimates of per capita income of India
during the colonial period was considered very significant:
a) Dadabhai Naoroji
b) William Digby
c) R.C. Desai
d) V.K.R.V. Rao

2. Major contribution to the GDP of the country on the eve of independence was from:
a) Tertiary sector
b) Secondary sector
c) Primary sector
d) Both primary and secondary sector

3. British rule in India for almost

a) Almost 3 centuries
b) Almost 100 years
c) Almost 2 centuries
d) Almost 150 years

4. The economic policies pursued by the colonial government in India were concerned
with
a) Protection and promotion of india
b) Protection of india and promotion of Britain
c) Protection and promotion of Britain
d) Both A and C

5. The impact of British policy on India economic structure was

a) India becomes supplier of raw materials and consumer of finished industrial products
from Britain
b) India became supplier of finished product to Britain
c) India became supplier of finished industrial products and consumer of raw materials
from Britain
d) Both B and C

6. One of the following statements about Indian economy is not true. Identify the false
statement
a) Indian agriculture was flourishing before the advent of the British
b) India’s foreign trade throughout the colonial period was marked by a large export
surplus
c) India had a sound industrial base under the British
d) British developed the Railway system in India for their own benefit
 7. The Indian economy on the eve of the independence was:
a) Developed
b) Stagnant
c) Underdeveloped
d) (b) and (c)

AGRICULUTRE SECTOR

8. Agriculture sector is also known as:

a) Tertiary sector
b) Secondary sector
c) Primary sector
d) First sector

9. The main interest of the Zamidar was:

a) To collect rent
b) To improve the condition of agriculture
c) to product food crops
d) to produce cash crops

10. Despite being the major source of livelihood, the agriculture sector continued to
experience stagnation and deterioration during the British rule in India because of:
a) decline of handicraft
b) land tenure system
c) drain of India’s wealth
d) none of the above

11. The main reason for stagnation of agriculture during the British rule was:
a) Low literacy rate
b) Discriminatory tariff policy
c) Land tenure system
d) De- industrialization

12. There was high relatively higher yield of cash crops in certain areas of the country
due
a) Better irrigation facility
b) Commercialization of agriculture
c) Good monsoon
d) None of these

INDUSTRIAL SECTOR
13. Initially, the industrial development was confined to the setting upof:
a) Cotton textile mills
b) Jute textile mills
c) Cotton and jute textile mills
d) Capital goods industry

14. Decline of handicraft industries led to :

a) Massive unemployment
b) Import of finished goods
c) Both (a) and (b)
d) Neither (a) nor (b)

15. ___________ Sector generally takes the output of the primary sector and
manufactures _________ goods.
a) Agriculture, finished
b) Secondary, semi-finished
c) Tertiary, raw
d) Industrial, finished

16. The Tata Iron and Steel Company was incorporated in the year:
a) 1907
b) 1947
c) 1908
d) 1950

17. The major cause of decay of Indian handicrafts during British Rule:
a) Low priced machine made goods
b) Discriminatory tariff policy
c) Both (a) and (b)
d) Neither (a) nor (b)

18. The jute mills dominated by foreigners during the British rule, were mainly
concentrated in:
a) Bengal
b) Gujarat
c) Maharashtra
d) d) Kerala

19. The finest variety of muslin was called:

a) Malmal
b) Malmalkhas
c) Malmalshahi
d) All of these
 20. Capital goods industries are those industries which
a) Helps in Production of consumers good directly
b) Helps in production of machines and tools which produce consumer goods
c) Helps in agriculture production only
d) Needs more capital

21. Decay of handicrafts was caused by:

a) British tariff policy
b) Competition From Man-Made Machines
c) New Patterns of demand
d) all of these

Foreign Trade Sector

22. Suez canal was opened for transport in :

a) 1850
b) 1869
c) 1853
d) 1901

23. Under colonial dispensation the economic policies of the government were
concerned with
a) Development of handicraft industries
b) Development of the colonized country
c) Promotion of British economic interest
d) None of these

24. On the eve of independence, India was net exporter of:

a) Primary products
b) Industrial products
c) Capital goods
d) Agricultural goods

25. The opening of Suez Canal served as a direct route for ships operating between:
a) India and America
b) India and Britain
c) India and Srilanka
d) India and Pakistan

26. The exports surplus during the British rule was used:
 a) To make payments for expenses incurred by an office set up by the colonial
government in Britain.
b) To meet expenses on war fought by the British government.
c) To import invisible items.
d) All of these.

DEMOGRAPHIC PROFILE

27. Before 1921, India was in the ______________ of demographic transition.

a) First stage
b) Second stage
c) Third stage
d) None of the above

28. Which year is described as the “year of Great Divide”?

a) 1881
b) 1907
c) 1921
d) 1931

29. India was in the first stage of demographic transition:

a) Before 1947
b) after 1947
c) Before 1921
d) after 1921

30. At the time of Independence, the infant mortality rate was:

a) 220 per thousand
b) 250 per thousand
c) 218 per thousand
d) 280 per thousand

31. The first census in British India was held in the year:
a) 1880
b) 1881
c) 1882
d) 1883

32. During the British rule, high mortality rate was due to
a) Inadequate public health facilities
b) Occurrence of frequent natural calamities
c) Both (a) and (b)
d) Neither (a) nor (b)
 33. High Birth Rate and Low Death Rate represents ___________ stage of demographic
transition.
a) Third
b) First
c) Second
d) First and second

34. Which of the following statement is true regarding demographic profile of India
during the colonial rule?
a) Life expectancy was 63 years
b) Infant mortality rate was around 70 per thousand live births
c) Overall literacy level was less than 16 percent
d) Both birth rate and death rate were quite low.

OCCUPATIONAL STRUCTURE
35. Occupational structure refers to
a) Distribution of working force among the different occupations

b) Nature of different occupations

c) Size of working force in a country
d) Number of people living in a country

36. The agriculture sector with _____ percent accounted for the largest share of workforce,
during the eve of Independence.
a) 70-75%
b) 80-85%
c) 75-80%
d) 60-65%

37. Parts of the then Madras Presidency comprised areas of the present-day states of :
a) Tamil Nadu and Andhra Pradesh
b) Kerala and Karnataka
c) Tamil Nadu and Andhra Pradesh and Orissa
d) Both A and B

Infrastructure sector

38. The most important infrastructure developed during British rule was:
a) Airways
 b) Railways
c) Waterways
d) None of the these

39. Which service remained throughout inadequate under the colonial regime?
a) Law and order
b) Postal services
c) Railways
d) Ports

40. ____________refers to the fundamental facilities and system serving a country. City,
or area, including the services and facilities necessary for its economy to function.
a) Sanitation
b) Transport
c) Railways
d) Infrastructure

41. The Tata Airlines was incorporated in the year:

a) 1907
b) 1918
c) 1932
d) 1922

42. The road which was built by British in India was to

a) Mobilizing the army within India
b) Drawing out of raw materials from the countryside
c) To overcome the problem of frequent famines in India
d) Only A and B

43. The railways affected the structure of the Indian economy in two ways
a) Commercialization of crops
b) Indian village becomes self-sufficient.
c) Broken the geographical and cultural barriers
d) Only A and C

44. This service becomes quite expensive and the British finally abandoned was
a) Airways sector
b) Defense sector
c) Inland waterways
d) Postal services
Match the followings

1. Choose the correct pair from Column A and Column B:

Column A Column B
Suez Canal 1921
First Railway Bridge 1907
Tata Steel 1869
Great Divide Year 1854

2. Arrange the following events in the order of occurrence:

a) First Railway bridge linking Bombay with Thane

b) Setting up of Tata Airlines
c) India conducted its first official Census.
d) India’s entry into the second stage of Demographic transition.

Indian Economy On The Eve Of Independence

1. Land revenue system: -
 Zamindars exploit the cultivator by imposing lagan
 Zamidars took the land of farmers when they were not able to deposit the Lagan
 Did nothing to improve the condition of agriculture.
2. Force Commercialization of agriculture: -
 Encouraged the production of cash crops instead of food crops
 Due to shortage of food crops country had to suffered from frequent famines
3. Low level of Productivity:
 No means or incentives to invest in agriculture, Negligible use of fertilizers
 Low levels of technology,Lack of irrigation facilities
1. Limited contribution of industries to GDP
 Only one sixth (about17%) of the GDP
2. Inadequate role of Public Sector
 Very limited operation of public sector
 Only restricted to the railways, power generation, communication, ports etc
3. Got Shortage of Capital Goods Industry
 Hardly any capital goods industry
 Wanted Indians to be dependent on them
4. Huge Competition from machine-made goods
 Machine-made products from Britain were low cost products and gave a hard competition
to the handicraft products in India.
 Demand for cheap imported manufactured goods from Britain rises
5. Two fold De-Industrialization policy
 Reduce India to exporter of raw materials for rapid industrialization in Britain
  Convert India to importer for the cheap finished prod
1. Drain of Indian wealth:
 Export surplus from foreign trade did not result in any flow of gold or silver into India
 used make to payments for expenses incurred on war fought by the British government
2. Importer of finished goods and Exporter of primary products
 India became an exporter of primary products.
 As a result there was a shortage of essential commodities in domestic market.
3. Monopoly control of British:
 More than half of India’s foreign trade was restricted to Britain while
 Suez Canal in 1869 served as a direct route for the ships between India and Britain.
1. Agriculture was the principal source of occupation
 Agriculture sector 70-75% .Manufacturing sector 10%,Service sector 15-20 %
2. Unbalanced growth/ Regional variation:
 Decrease in the share of workforce in the agriculture sector in Tamil Nadu, Andhra
Pradesh, Kerala, Karnataka, Maharashtra and West Bengal.
 Increase in the share of workforce in the agriculture sector in Orissa, Rajasthan and
Punjab
1. Slow population growth Life expectancy was as low as 44 years which shows the lack of health
care facilities water and air-borne diseases.
2. Lack of Public health facilities Health facilities were either unavailable to large portion of
population
3. Illiteracy rate:- The average literacy rate was 16 % and woman literacy rate was only 7%.
4. Poverty Wide poverty prevailed in India during the colonial period
1. Communication:
 Posts and telegraphs were the most popular means of communication.
 electric telegraph in India served the purpose of maintaining law and order.
2. Air and Water Transport:
 Construction of the inland trade and sea lanes was not satisfactory and was costly.
 Indian waterways proved to be uneconomical.
3. Roads
 The colonial administration could not construct large roads due to shortage of funds.
 The roads that were built to mobilizing the army shifting raw materials.
4. Encourage Railways
 British introduced the railways in India in 1850
 Helped them take long distance travel and thus break geographical and cultural barriers.
 It improved commercialization of Indian agriculture.

CHAPTER-1 INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

1. ASSERTION and REASONING

ASSERTION (A):

Colonial government levied 0% import duty on British goods imported in India.

REASONING (R):

Colonial government systematically destroyed Indian handicraft industry

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A)

2. ASSERTION and REASONING

ASSERTION (A):

The Zamindars were declared as owners of the soil. They were supposed to pay a fixed sum to the
government while they could extract as much as they wanted from the actual tillers of the soil.

REASONING (R):

Agriculture was exploited through Zamindari system of Land Revenue.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A)

3. ASSERTION and REASONING

ASSERTION (A):

The two important industries which were adversely affected by partition were Cotton textile and Jute
industry.

REASONING (R):

India faced problem of rehabilitation of large number of refugees from Pakistan.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)

4. ASSERTION and REASONING

ASSERTION (A):

More than Half of India’s Foreign trade was restricted to Britain

REASONING (R):

Britain maintained Monopoly control on India’s Import and Export

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A)

5. ASSERTION and REASONING

ASSERTION (A):

India was more of a consumer than a supplier of materials for finished goods.

REASONING (R):

British policies were more directed towards their own economic interests.

Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (d) Assertion (A) is false but Reason (R) is true.

6. ASSERTION and REASONING

ASSERTION (A):

The construction of railways led to huge economic losses to the Indian economy.

REASONING (R):

It enhanced commercialization of Indian agriculture, which adversely affected the comparative self-
sufficiency of the village economies in India.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)

7. ASSERTION and REASONING

ASSERTION (A):

The British introduced the railways in India in 1850 and it is considered as one of their most important
contributions.

REASONING (R):

Along with the development of roads and railways, the colonial dispensation also took measures for
developing the inland trade and sea lanes.

Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true. Ans: (b) Both Assertion (A) and Reason (R) are true and
Reason (R) is not the correct explanation of Assertion (A)

8. ASSERTION and REASONING

ASSERTION (A):

The major policy initiatives that is land reforms and green revolution helped India to become self-
sufficient in food grains production.

REASONING (R):

The proportion of people depending on agriculture did not decline as expected.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)

9. ASSERTION and REASONING

ASSERTION (A):

India had an independent economy before the advent of British rule. Though agriculture was the main
source of livelihood for most people, yet, the economy of the country was characterised by various kinds
of manufacturing activities.

REASONING (R):

There was lack of capital goods industries in India.

Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)

10. ASSERTION and REASONING

ASSERTION (A):

Indian agriculture sector suffered due to partition.

REASONING (R):

A sizeable proportion of the undivided countries highly irrigated and fertilizers land went to Pakistan.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A)

CHAPTER-1 INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

CASE STUDY-1:
Muslin is a type of cotton textile which had its origin in Bengal, particularly, places in and around Dhaka. Daccai
Muslin had gained world wide fame as an exquisite type of cotton textile.
The finest variety of muslin was called malmal. Foreign travelers also used to refer to it as malmal shahi or malmal
khas meaning that it was worn by or fit for, the royalty.

Questions:
1. What was Muslin refer to?
2. For whom was that special kind of Muslin made for?
3. What kind of growth does Industrial sector had andwhy?
4. Dhaka is the capital of _______________.
Answers:
1. Muslin isa type of cotton textile which had its origin in Bengal, particularly, places in and aroundDhaka.
2. It was made and meant for Royal people
3. Lopsided Industrial Structure The industrial growth was lopsided, in the sense that consumer goods industry was
not adequately supported by the capital goods industry
4. Bangladesh

CASE STUDY-2:
Before colonial period, India was exporting manufactured goods which enjoyed worldwide demand. Under the colonial
rule, India was reduced to a supplier of raw materials like jute, cotton, indigo, wool, sugar etc. and importer of
finished consumer goods like silk and woollen clothes and light machinery manufactured in the factories of Britain.
Additionally, the opening of Suez Canal intensified this control of Britishers over Indian foreign trade.The remaining
volume of foreign trade was allowed with a handful of countries namely China, Ceylon (Sri Lanka) and Persia (Iran).
Interestingly, even this trade was heavily monitored by the colonials. As a matter of fact, there was a large generation of
export surplus under the British Raj. India was a large exporter in the colonial period. However, it did not affect the
country’s economy. Commodities like food grains, clothes, kerosene hit the country hard with its scarcity.  
Ironically, this export surplus never made its way to India. It was used to make payments for an office set up in Britain,
war expenses of the British and import of invisible items. Such brutalities eventually led to the dawn of a rising foreign
trade aspect of India

Questions:
1. How did the opening of suez canal help the Britishers?
2. The export surplus was used for the welfare of Indian Industry. (True/ False)
3. Name the countries with which India had Foreign Trade.
4. What is the reason for shortage of food grains?

Answers:
1. Cost of transportation and access to Indian market was made easier.
2. False
3. Britain, China, Ceylon, Persia.
4. Commercialization of Crops

CASE STUDY-3:
The French traveller, Bernier, described seventeenth 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, cottons
and silks, rice, sugar and butter. It produces amply — for its own consumption — wheat, vegetables, grains, fowls,
ducks and geese. It has immense herds of pigs and flocks of sheep and goats. Fish of every kind it has in profusion.
From rajmahal to the sea is an endless number of canals, cut in bygone ages from the Ganges by immense labour for
navigation and irrigation.”

Questions:
1. Name the items exported by India.
2. Name the items produced for self consumption.
3. Highlight the form of developed infrastructure mentioned in the paragraph.
4. Name the livestocks maintained by Indians in the given era.

Answers:
1. cottons and silks, rice, sugar and butter
2. wheat, vegetables, grains, fowls, ducks and geese
3. Canals for navigation and irrigation
4. Pigs, sheep and goats
CASE STUDY-4:
Before 1947 ,?More than 90% of the national income relied on the Indian agriculture sector. A significant portion of
the country’s population resided in rural areas where agriculture was the primary source of livelihood.
The pre -colonised India produced primary two crops ,wheat and rice. Even if it was only two types of crops,
country's agriculture sector was sustainable and self sufficient.The British invasion resulted in total
commercialization of India's agriculture industry. On the eve of independence the once most prominent sector of this
country was known to be suffering from stagnation and constant degradation.

Questions:
1. What is meant by commercialization of agriculture?
(a) Production of crop for sale in the market (b) Production of crop for self consumption
(c) None (d) Both
2. Reason for low productivity in agriculture sector
(a) HYV seeds (b) Low level of technology
(c) Improved irrigation system (d) All of these
3. Which of the following statements are correct with reference to the Zamindari system.
(i) The profit accruing out of the agriculture sector was proposed to go to the cultivators.
(ii) The main interest of the zamindar’s was only to Collect rent regardless of the economic condition of the
cultivators.
(a) Both are correct (b) Both are incorrect
(c) (i)correct (ii) incorrect (d) (ii)correct (i) incorrect
4. What was the main reason for the stagnation in the agriculture sector under the British rule?

Answers:
1. (a) Production of crop for sale in the market
2. (b) Low level of technology
3. (d) (ii) correct (i) incorrect
4. Land settlement system introduced by the British rule

CASE STUDY-5:
Feudalism and sub-feudalism were prevalent. In some cases there were as many as 50 intermediaries between the
peasants and the Government. Around 4/5th of the produce was taken from the peasants as taxes, which in turn led
to impoverishment of farmers. Focus was not on new ways and bringing the technology in agriculture. Many
farmers lost their lives to famine. Britishers brought about commercialisation of agriculture. It was hard for peasant
communities, at large, to arrange food for themselves throughout the year, though they were the real producers of
the food. Measures to improve agriculture were not momentary that could be all done, all of sudden, in 1947.

Questions:
1. What was the main reason for stagnation in agriculture sector during British rule?
2. Name some cash crops grown during British rule.
3. What was the effect of growing cash crops on the soil?
4. What do you mean by commercialisation of agriculture?
Answers:
1. Land settlement system
2. Opium, tea, coffee, sugar, jute and indigo
3. Spoiled the fertility of the land and no other crop could be grown on it.
4. commercialisation of agriculture means production of crops for sale in the market rather than for self-
consumption.

CASE STUDY-6:
The products such as raw silk,cotton, wool,sugar,indigo,jute etc.and an importer of finished consumer goods like
cotton, silk and woollen clothes and capital goods like light,machinery produced in the factories of Britain.
For all practical purposes, Britain maintained a monopoly control over India's exports and imports.The opening
ofthe Suez Canal further intensified British control over India's foreign trade.

Questions:
1. Which restrictive policies pursued by the Colonial government adversely affected the structure, composition and
volume of India's foreign trade?
2. The opening of_____________ further intensified British control over India's foreign trade.
3. More than ______________ of India's foreign trade was restricted to Britain.
4. Name the area of operation of the public sector under the British Colonial Rule.

Answers:
1. 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.
2. Suez Canal.
3. 50%
4. Railways, Power generation, communications, ports and some other departmental undertakings.

CASE STUDY-7:
The rule of the British in India is possibly the most controversial and the most hotly debated aspect of the history of
the British Empire. Admirers of British rule point to the economic developments, the legal and administrative
system, and the fact that India became the centre of world politics. Critics of British rule generally point out that all
of these benefits went to a tiny British ruling class and the majority of Indians gained little. Admirers of British rule
counter this by saying that most Indians were poor and oppressed by their own leaders before the British arrived,
and that British rule was less harsh on ordinary Indians than rule by Indian princes.
Perhaps the main reason why the arguments are so heated and so complex is that India was very different from the
other territories that made up the empire. North America and Australia, for example, were sparsely populated and
their populations were less economically developed than Britain. India, however, had a huge population and was just
as developed as Britain in the 1700s when the British arrived.
The British were able to take control of India mainly because India was not united. The British signed treaties and
made military and trading alliances with many of the independent states that made up India. The British were very
effective at infiltrating these states and gradually taking control of trade. They often left the local princes in charge
of the various parts of India. These local princes were effective at maintaining British rule and gained much from
being loyal to the British.

Questions:
1. Mention any one positive impact of British rule except the ones mentioned in above case study.
2. Huge population of India in 1700 proved to be a ___________ (liability/ asset) for the country.
3. The British were very effective at infiltrating these states and gradually taking control of trade. How according to
you, British turned trade in their favour?
4. ‘British rule was less harsh on ordinary Indians than rule by Indian princes’. Do you agree with statement?

Answers:
1. Railways.
2. Liability
3. By imposing high tariffs on Indian exports of finished goods. And low or no tariff on British imported goods.
4. No. Because before the advent of the British almost all the Indian states were self-sufficient.
They were exploited by British.
CASE STUDY-8:
During the second half of the nineteenth century, modern 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. The
cotton textile mills, mainly dominated by Indians, were located in the western parts of the country, namely,
Maharashtra and Gujarat, while the jute mills dominated by the foreigners were mainly concentrated in Bengal.
Subsequently, the iron and steel industries began coming up in the beginning of the twentieth century. The Tata Iron
and Steel Company (TISCO) was incorporated in 1907. A few other industries in the fields of sugar, cement, paper
etc. came up after the Second World War.
Questions:
1. When did the modern industry begin to take root in India?
2. Which country had command over cotton mills?
3. Who is the founder of TISCO?
4. There was systematic _____________ by Britishers.

Answers:
1. During the second half of the nineteenth century.
2. India
3. Jamshetji Tata
4. De-industrialisation

CASE STUDY-9:
By the time India won its independence the impact of the the two century long British colonial rule was already
showing on all aspects of the Indian economy. The agricultural sector was already saddled with surplus labour an
extremely low productivity. The industrial sector was crying for or modernization diversification, capacity building
and increased public investment. Foreign trade was oriented to feed the industrial revolution in Britain.

Questions:
1. The main reason for stagnation in agriculture during British rule was :
(a). Land settlement system (b). De industrialization
(c). Lack of technology (d). Commercialization of agriculture
2. Which industry received the major setback during the colonial rule?
(a). Cement (b). Handicraft
(c). Paper (d). Iron in steel
3. At the time of independence Indian industry was crying for modernization due to
(a). Lack of capital goods industries during British rule
(b). Adverse effects of decline of handicraft industry
(c). Limited role of public sector
(d). None of these
4. Foreign trade was oriented to feed the industrial revolution in Britain as India became an __________ of primary
products and an ______of finished consumer goods.

Answers:
1. (a). Land settlement system
2. (b). Handicraft
3. (c). Limited role of public sector
4. Importer/Exporter

CASE STUDY-10:
Backward, stagnant and non-vibrant agriculture during the British Raj sharply contrasted with the pre-British period
agriculture. Prior to the British Raj in India, rural India was described as a system of self-contained village
communities. These village communities included farmers and the functionaries. The farmers were engaged in crop
farming or cattle farming while the functionaries would render essential services like that of blacksmiths,
goldsmiths, washermen and shoe-makers. Prosperous Agriculture even without Mechanization (Pre-British Period) .
There were no intermediaries (like zamindars) between the state and the farmers; the farmers would pay land
revenue directly to the king.
Prosperity and stability were the key characteristics of life in rural India. Thus, the French traveler, Bernier,
described Bengal in 17th century as "richer than Egypt" producing amply for self-consumption
and exporting in abundance.

Questions:
1. During British rule Indian economy was-
 (a). backward (b). stagnant
(c). non vibrant (d). all of the above
2. __________ described Bengal in 17th century as "richer than Egypt" producing amply for self-consumption and
exporting in abundance.
3. Before British rule Indian economy was backward. (true/false)Give reason.
4. Why did Britishers come to India?

Answers:
1. d
2. The French traveler, Bernier
3. False, Prior to the British Raj in India, rural India was described as a system of self-contained village
communities
4. For trade