INDIAN SCHOOL AL WADI AL KABIR
DEPARTMENT OF COMMERCE
INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
1 mark qns:
1. Who is the author of the book “Poverty and Famines”?
2. Which sector contributed most to the GDP on the eve of independence?
3. In which year was TISCO incorporated?
4. What is meant by commercialization of agriculture?
5. Despite being the major source of livelihood, the agricultural was stagnant on the eve of independence because of what?
3-4 mk Qns:
6. How was the Zamindari system of land settlement responsible for the stagnation of agriculture?
7. Explain the main focus of the colonial economic policies in India. Briefly explain the impact of these policies.
8. Discuss the three principal causes behind the backwardness of the Indian economy at the time of independence.
A: The three principal causes behind the backwardness of the Indian economy at the time of independence are-
i. India was treated as a colony which served as a source of raw materials to the British industry and a market for finished goods. Apart from this the British had no interest in the development of the country.
ii. Destruction of the Indian handicrafts by the British proved detrimental to the Indian economy.
iii. Land revenue policy followed by the British exploited the farmers which led to poverty and backwardness.
9. Indicate the volume and direction of trade at the time of independence.
10. What objectives did the British intend to achieve through their policies of infrastructure development in India?
11. What was the two-fold motive behind the systematic de-industrialization effected by the British?
A: i. To reduce India to the status of a mere exporter of important raw materials to cater to the upcoming British industries there.
ii. To turn India into the market for the finished goods of those industries.
iii. The traditional industries in India were destroyed and no effort was made to develop the industrial base to achieve this motive.
5 mk Qns:
12. Explain the five main characteristics of Indian economy on the eve of independence.
13. Critically examine some of the shortfalls of the industrial policies pursued by the British.
14. Highlight the positive contributions made by the British in India.
A: The main motive of the British was to serve the interests of England. The benefits of such policies were purely incidental.
i. Political and economic unification of the country.
ii. Development of the infrastructural facilities like transport, (especially railways), communication and banking system
iii. Emergence of market economy and capitalist enterprise.
iv. Introduction of modern techniques of production and management.
15. Explain the four main causes of India’s agricultural stagnation during the colonial period.
A: i. Indian agriculture was the main source of livelihood, income and food and 85% of the population was directly or indirectly dependent on it.
ii. Low levels of technology, lack of irrigation facilities and negligible use of fertilizers added up to the low productivity of the agricultural sector.
iii. Although commercialization of agriculture led to increase in crops in some areas where the farmers were forced to grow cash crops and raw materials for the British industries (rather than the food grains), little was done for its improvement.
The restrictive policies of the colonial Govt reduced India to an exporter of raw materials and cash crops to serve the British interests.
16. How was the Zamindari system of land settlement responsible for the stagnation of Indian agriculture?
A: i. The zamindars were made owners of large tracts of land. In return they had to pay a fixed amount of land revenue to the British govt.the main interest of the Zamindars was just to collect rent and they did nothing to improve the condition of agriculture.
ii. The cultivators had no ownership rights and lacked interest to increase the productivity.
iii. The agricultural sector thus suffered from low levels of technology, lack of irrigation facilities, negligible use of fertilizers which led to lack of productivity.
17. What do you understand by the term “Drain if wealth” in the colonial period?
A: i. The expanding industries in Britain needed raw materials and market for their finished products and forced the Indian farmers to sell crops as raw materials or cash crops.
ii. Indians were forced to buy British finished goods and the local industries were virtually destroyed.
iii. Later, the British made investment in Indian industries and infrastructure and the process of drain of wealth started through profits and export surplus.
iv. India was also forced to pay the costs of British administration in the form of home charges which included the cost of running offices in the home country.
18. Highlight the features of pre-independence demographic and occupational structure.
19. Discuss the good impacts of the British Government on the Indian economy during the pre independence period.
20. Outline the adverse effects of the policies of the colonial Govt during the pre independent period.
21. India was a rich country occupied by the poor people during the pre-independent British period. Do you agree? Justify your answer.
22. What is export surplus? How did export surplus during the British rule lead to the economic drain of Indian wealth?
23. What were the various forms of revenue settlement adopted by the British in India? How far do you think these settlements have a bearing on the current agricultural scenario in India?
1 | Page