Indian Economy on the Eve of Independence Class 12 Important Questions and Answers Indian Economy Chapter 1

Important Questions of Indian Economy on the Eve of Independence Class 12 Indian Economy Chapter 1

Question 1.
Name the French traveller who visited India during 17th century. How did he, describe India?
Answer:
Bernier was the French traveller who visited India during 17th century. He described India as ‘richer than Egypt’.

Question 2.
Name the cotton textille which had its origin in Bengal. By which other names is it known?
Answer:
Dacca Muslin is a type of cotton textile which had its origin in Bengal. It is also known as malmal shahi or malmal khas.

Question 3.
Name some notable economists who estimated India’s Per Capita Income during the colonial period. (NCERT)
Answer:
Dadabhai Naoroji, William Digby, VKRV Rao and RC Desai.

Question 4.
Why was Indian economy referred to as an agricultural economy on the eve of independence?
Answer:
Indian economy was referred to as an agricultural economy on the eve of Independence because about 70-75% population was dependent on agriculture for their livelihood, either directly or indirectly.

Question 5.
What is the meaning of subsistence farming?
Answer:
It is a form of farming in which the agricultural produce is not sold but is kept for the consumption of the family and to provide seeds for the next sowing period.

Question 6.
Explain the meaning of ‘commercialisation of agriculture’.
Answer:
Commercialisation of agriculture refers to a shift from cultivation for self-consumption to cultivation for sale in the market.

Question 7.
Name some modern industries which were in operation in our country at the time of independence. (NCERT)
Answer:
Cotton textile, jute textile, sugar industries, cement industries and paper industries.

Question 8.
When was India’s first official census operation undertaken? (NCERT)
Answer:
In 1881, India’s first official census operation was undertaken.

Question 9.
What does occupational structure shows?
Answer:
Occupational structure shows the distribution of population across the different sectors viz the primary, secondary and tertiary sector.

Question 10.
What does demographic condition refers to?
Answer:
Demographic condition refers to various indicators related to the population of the country such as life expectancy, literacy rate, birth rate etc.

Question 11.
The zamindari system of land settlement was responsible for the stagnation of Indian agriculture. Explain.
Answer:
The zamindars were recognised as the permanent owners of land and were required to pay a fixed sum of money to the government on a specified day in lieu of this right. If they defaulted on making payment, then this right was taken away from them.

Because of this, the zamindars charged huge rent from the tillers and even forced them to pay in case of crop failures. Inspite of charging a huge rent, they did nothing to improve the condition of agriculture. Also, after paying huge amount of produce as rent, the farmers were in no position to buy fertilisers and pesticides to increase the productivity of land. All this led to the stagnation of Indian agriculture.

Question 12.
Explain the various systems of collecting land revenue prevalent under the British rule.
Answer:
The following two systems of collecting land revenue were prevalent under the British rule

Ryotwari system It was the way of collecting tax revenue (in British controlled areas in India) directly from cultivators of farmland.
Mahalwari system This system consisted of landlords or zamindars representing an entire village or even group of villages. Alongwith the tillers, they were jointly as well as individually responsible for the payment of revenues. The land under this system included the land of the villages as well as adjoining forestland and pastures.

Question 13.
When was the Suez Canal opened? State its effects on the Indian economy.
Answer:
Suez Canal was opened in 1869. Suez Canal is an artificial waterway running from North to South across the Isthmus of Suez in North-Eastern Egypt. It is one of the most important waterways in the world. Its opening reduced the cost of transportation and made access to the Indian market easier and economical. A significant reduction in transport cost prompted monopoly control of India’s foreign trade by the British Government.

Question 14.
Explain how the construction of railways affected the structure of the Indian economy?
Answer:
Railways affected the structure of the Indian economy in many ways

It enabled people to undertake long distance travel and thereby break geographical and cultural barriers.
It fostered commercialisation on Indian agriculture which adversely affected the self-sufficiency of the village economies in India.
It helped to transport food supplies to famine affected areas quickly.

Question 15.
Enumerate the main reasons for slow growth of population during British rule.
Answer:
Following are the main reasons for slow growth of population during British rule

The death rate was quite high.
Infant mortality rate was also high.
Spread of epidemics and famines was quite frequent.

Question 16.
The downfall of the kings of India lead to the downfall of handicraft industries. Do you agree?
Answer:
Yes, I agree. The kings of India were great patrons of the handicraft industry. They extended state help to expert craftsmen and were also willing to spend huge amounts of money to buy exquisite pieces of handicrafts. Their downfall robbed the handicraft industry of their great supporters and led to its downfall.

Question 17.
What do you understand by the drain of Indian wealth during the colonial period? (NCERT)
Answer:
The Britishers exploited India in every possible way. Raw material from India was exported and expensive finished goods were imported to India. Also, the heavy administrative costs related to running of the colonial rule in India, in the form of wages and salaries of the administrative staff and the expenses borne by Britishers in fighting wars, were borne by revenues generated in India. All this led to drain of India’s wealth.

Question 18.
Which year is regarded as the defining year to mark the demographic transition from its first to the second decisive stage? (NCERT)
Answer:
The year 1921 is regarded as the defining year or the ‘Year of Great Divide’, because prior to 1921, population growth in India was stagnant. India was in the first phase of demographic transition till 1921, that was characterised by high birth rate and high death rate. After 1921, India’s population growth never declined and showed a consistent upward trend.

Question 19.
Indicate the volume and direction of trade at the time of independence. (NCERT)
Answer:
At the time of independence, india was a major exporter of raw material such as raw silk, cotton, wool, sugar, indigo, jute etc. At that time, India used to import finished consumer goods such as cotton, silk and light machinery from factories of Britain. More than half of India’s foreign trade was restricted to Britain while the rest was targeted to countries like China, Ceylon (Sri Lanka), and Persia (Iran).

Question 20.
Briefly discuss the pattern of industrial development on the eve of independence.
Answer:
The industrial development pattern on the eve of independence was characterised by the following elements

The public sector enterprises such as railways, power, post and telegraph were confined to areas which would enlarge the size of market for British products in India.
The industrial growth was lopsided, in the sense that consumer goods industry was not adequately supported by the capital goods industry.
No priority was given for the development of basic and heavy industries. Tata Iron and Steel Corporation (TISCO) established in 1907, was the only basic industry in India.
The pattern of development in the industrial sector was lopsided and was dominated by the presence of small industries (31%) and large industries (43%), but very few medium industries.

Question 21.
Explain the composition of foreign trade at the time of independence.
Answer:
India’s foreign trade under the British rule is described as below

The British followed a typical colonial pattern of trade in India, where it was made to serve their interests.
India exported raw materials to the home country of the British for their expanding industries.
India was also developed as a market for the finished goods of the British industries.

Thus, India was reduced to being a source of food for the British, a supplier of raw materials for the British industries and a market for their finished products.

Question 22.
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies? (NCERT)
Answer:
The focus of economic policies pursued by the colonial government in India was to make India an exporter of raw material for feeding the rapidly expanding modern industrial base and to target India as a market for its finished goods.
The British policies had the following impacts on India

Agricultural sector had a lot of surplus labour and had extremely low productivity.
Industrial sector was backward and lacked diversification.
Poverty and unemployment were high.
Infrastmctural facilities needed upgradation.
Foreign trade was beneficial for the Britishers.

Question 23.
What was the two-fold motive behind the systematic de-industrialisation affected by the British in pre-independent India? (NCERT)
Answer:
The following are the two-fold motive behind the systematic de-industrialisation affected by the British
(i) Making India a supplier of raw materials : The main motive of the British Government was to make India a mere supplier of cheap raw materials to feed its own rapidly expanding industrial base.

(ii) Making India a market for finished goods : Another important objective of the British Government in de-industrialising Indian economy was to use India as a large and growing market to sell the finished goods produced by the British industries, so that their industries never face a demand shortage and could keep on flourishing.

Question 24.
What objectives did the British intend to achieve through their policies of infrastructure development in India? (NCERT)
Answer:
Under the British rule, basic infrastructure such as railways, ports, water transport, postage and telegraph developed, but the objective behind the development of infrastructure was not to provide basic amenities to the people but to cater to their colonial interests.
The objectives of the Britishers behind the development of infrastructure were

Roads were developed for the purpose of mobilising armies and transporting raw materials to the nearest railway station or port.
Railways was developed to encourage commercialisation of agriculture.
Postage and telegraph were introduced to enable them to control the large sub-continent.

Question 25.
Explain the important features of international trade during the British rule.
Answer:
The important features of international trade during the British rule are as follows
(i) Exporter of primary products and importer of finished goods Under the colonial rule, India became an exporter of primary 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.

(ii) Britain’s monopoly control More than half of India’s foreign trade was restricted to Britain. The opening of Suez Canal in 1869 further intensified British control over India’s foreign trade.

(iii) Surplus trade but only to benefit Britishers Due to huge exports of primary goods, our balance of trade showed a surplus. But the surplus so generated was not used as an investment for future growth, but was spent by the Britishers to fight wars to expand their territory. Accordingly, there was a huge drain of Indian wealth.

Question 26.
Briefly discuss the condition of agricultural sector at the time of independence.
Answer:
The condition of agricultural sector at the time of independence can be understood with the help of the following points

Low level of productivity The productivity levels were very low, at about 660 kg per hectare for wheat and 665 kg per hectare for rice.
High degree of vulnerability Agriculture was greatly affected by erratic rainfall.
Rift and turmoil between owners and tillers The owners charged high rent from the tillers and demanded rent even when the crops failed. This demotivated the tillers and agricultural productivity was negatively affected.
Uneconomic and fragmented landholdings The size of the landholdings was uneconomic and also the landholdings were scattered. This further affected the productivity of land adversely.
Problem of unemployment and under employment The agricultural sector was plagued with the problem of unemployment and under employment.
Use of primitive techniques of production The farmers used age old primitive techniques of production, which was a cause of low productivity.

Question 27.
What was the state of infrastructure at the time of independence?
Answer:
The state of infrastructure under the colonial rule can be understood with the help of the following points

Roads The roads constructed before Independence, were not fit for modem transport. It was very difficult to reach rural areas during rainy season.
Railways British rulers introduced railways in India in 1850 and it began its operation in 1853 between Bombay and Thane. It is considered as one of the important contributions of Britishers.
Water and air transport The colonial rulers took measures for the development of water transport. However, the inland waterways, proved uneconomical as in the case of the coast canal on the Orissa coast. The colonial government also showed way to the air transport in 1932 by establishing Tata Airlines.
Communication Modern postal system started in India in 1837. The first telegraphy line was opened in 1857.

Question 28.
What were the negative effects of the British rule in India?
Answer:
The negative effects of the British rule in India are as follows
(i) Colonial exploitation through trade malpractices The Britishers exploited India by following the given trade practices

They collected raw material for British industries from India.
They sold finished goods of British industries in India. To encourage the above trade, no duty was charged on imports from Britain and subsidy was given for exporting raw material to Britain.

(ii) Use of British capital to exploit country’s resources The Britishers used their capital and entrepreneurial skills to exploit India’s natural resources and cheap labour resources. The Britishers invested in mining and plantation industries and paid very low wages to the workers inspite of unsafe working conditions.

(iii) Development of industries which complemented the British industries The Britishers invested only in those industries which complemented the growth of their industries back home. So, they invested in developing railways, post and telegraphs, rubber, tea and coffee plantations, etc. They totally neglected the development of key and basic industries like iron and steel, machine making industries etc. Jute and cotton textile industries, were also discouraged as they could have been a threat for the textile factories of Britain.

(iv) Economic drain The Britishers drained the country economically. They took away various wealthy possessions that India possessed, e.g. the famous Kohinoor diamond. According to an estimate, approximately a trillion dollars were looted by the Britishers, in addition to the gems and jewels.

(v) Partition of the country This was the most diastatic consequence of the British rule in India; the effects of which we still face in the form of cross-border terrorism. The Britishers fuelled the Hindu-Muslim dispute for their own benefit, which led to the partition of the country.

Question 29.
‘The railways affected the structure of the Indian economy positively, as well as negatively.’ Do you agree?
Answer:
Yes, I agree. The railways affected the structure of the Indian economy positively in the following ways

It enabled people to undertake long distance travel and thereby break geographical and cultural barriers.
It fostered commercialisation of Indian agriculture as agricultural produce could be sent to distant places. Farmers started viewing agriculture as a business rather than a way of subsistence.
Railways enabled the government to supply foodgrains fastly to famine affected areas.

The railways affected the Indian economy negatively in the following ways:

It enabled the goods from British factories to be transported to various parts of the country, thereby expanding their market.
It facilitated the transport of raw materials to the port cities and ensured their easy exportability.
Commercialisation of agriculture affected the self-sufficiency of the rural areas.

Question 30.
Why did the Britishers developed the railways in India?
Answer:
Railways was developed by the British East India Company and then by the colonial British Government to achieve the following objectives
(i) To promote the commercial interest of Britishers Industrialisation in Britain compelled the Britishers to look out for new markets for their finished goods and also identify the countries from where an interrupted supply of raw material could be ensured for their factories. To achieve these twin objectives, the Britishers introduced the railways in the country. Railways connected the raw material producing areas to the port cities and also ensured that the goods imported from Britain were transported to every nook and comer of the country for sale.

(ii) For military motives The Britishers established railways because they felt that it would help in faster movement of troops and supplies at the time of internal revolution or for defence against external aggression.

(iii) Capital investment Railways was quite successful in Britain and was earning substantial profits. Because of this, the British capitalists wanted to establish railways in India also, so that they would be able to earn profits on their investment.

(iv) Political interest The Britishers believed that the introduction of railways in India would provide political stability to the country.

Question 31.
What were the main causes of India’s agricultural stagnation during the colonial period? (NCERT)
Answer:
The main causes of India’s agricultural stagnation during the colonial period were:
(i) Land revenue system under the British rule The Britishers in India established the zamindari system. Under this system, the zamindars were the permanent owners of the land. For their ownership rights, they were required to pay a fixed sum to the government as land revenue and they were given full freedom to charge any revenue they wanted from the tillers. The zamindars had lavish and extravagant lifestyles and they mercilessly exploited the poor tillers and did nothing for their upliftment.

(ii) Lacking of resources Because the tillers had to pay huge amount of rent, referred to as ‘Lagaan’, they were not left with any surplus to be able to provide for resources needed in agriculture in the form of fertilisers or providing for irrigation facilities. This further lowered the agricultural productivity.

(iii) Commercialisation of agriculture Instead of producing food crops, fanners were producing cash crops, which were ultimately used by British industries. This further compounded the plight of the tillers. While earlier they were growing crops to meet their family needs, now they had to purchase from the market. This led to an increase in indebtedness and they were constantly borrowing from moneylenders and landlords at very high rate of interests. Production of indigo is a good example of the same.

Question 32.
The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of your answer. (NCERT)
Answer:
The traditional handicrafts industries in India enjoyed worldwide reputation, but the British misrule in India led to the decline of Indian handicraft industry. The Britishers adopted the following policies to systematically destroy the handicraft industry
(i) Discriminatory tariff policy of the state: The Britishers followed a discriminatory tariff policy by allowing tariff free exports of raw material from India (to provide for the requirements of their industries in Britain) and tariff free import of British industrial products (to promote British goods in India), but placed a heavy duty on the export of handicraft products. So, Indian handicraft products started loosing their foreign as well as domestic markets.

(ii) Competition with machine-made products: Machine-made products from Britain were cheap and better in quality than the handicraft products. This competition forced many handicraftsmen to shut down their business.

(iii) Introduction of railways in India: The Britishers introduced railways in India to expand the market of its low priced industrial products. Consequently, the demand of high-priced handicraft products started to fall, thus leading to the downfall of handicraft industry.

(iv) Disappearance of princely courts Prior to the British rule, Rajas, Nawabs and Shehenshahs ruled the different parts of our country and they were great patrons of the handicrafts. But, as the British Raj spread its tentacles, these princely courts declined and so did their patronage. This ultimately led to the decline of the handicrafts.

(v) New patterns of demand As the British rule progressed in India, a new class emerged, which was keen to follow the British lifestyle. This changed the pattern of demand in favour of the British goods.

Question 33.
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration. (NCERT)
Answer:
The industrial policy pursued by the Britishers under the colonial administration aimed at promoting the modem industries in britain.
This was achieved through-
(i) Decay of handicraft industry: The traditional and important handicraft industry of India, in the absence of any patronage and incentive, started to decline. The decline of handicraft industry not only created massive unemployment but also resulted in a spur of demand in the Indian consumer market which was now deprived of supply of locally made goods. This demand was met through goods produced in British industries.

(ii) Limited growth of public sector enterprises Only those public sector enterprises which sub-served the interests of the Britishers were developed such as railways, postage and telegraph etc.

(iii) Absence of capital goods industries The consumer goods industries were not supported by the capital goods industry. There was also a dearth of basic and heavy industries.

(iv) Bleak growth of modern industry Because no initiative was taken by the British Government to industrialise the Indian economy, therefore modem industries registered a negligible growth rate. A few enterprising entrepreneurs opened iron and steel industry, sugar, cement and paper mills.

Question 34.
Highlight the salient features of India’s pre-independence occupational structure. (NCERT)
Answer:
The following are the salient features of India’s pre-independence occupational structure:
(i) Pre-dominance of agriculture Under the colonial mle, India was basically an agrarian economy, with nearly 70-75% of its workforce engaged directly or indirectly in agriculture. Due to massive poverty and widespread illiteracy during the colonial rule, a large proportion of the population was engaged in farming and related activities to earn their living.

(ii) Lack of opportunities in industry Only a small proportion of population was employed in manufacturing sector. Only 10% of the total workforce was engaged in manufacturing and industrial sector.

(iii) Unequal distribution among sectors There was unequal distribution of occupational structure amongst the primary (agriculture), secondary (manufacturing) and tertiary (service) sectors.

(iv) Regional imbalance There was regional variation in the occupational structure of India. On the one hand, the Madras Presidency, Bombay and Bengal experienced a fall in the agricultural workforce and increase in occupational share of manufacturing and services. But on the other hand Orissa, Rajasthan and Punjab registered an increase in the dependence of the workforce on agriculture sector.

Question 35.
Were there any positive contributions made by the British in India? Discuss. (NCERT)
Answer:
Although, the motive behind the British rule in India was colonial exploitation, but the means resulted in some positive side effects which are as under:
(i) Political and economic unification of India Prior to the British rule, the Indian sub-continent was divided into small and fragmented territories mled by different dynasties. The British Government took over the control of these territories and unified the country politically and economically.

(ii) Development of means of transport Although, the Britishers developed various means of transport, such as roads and railways for their personal benefit, yet these opened up new opportunities of growth and helped in the cultural unification of the country. The developed means of transport also helped to prevent the spread of famines.

(iii) Growth of monetary system The colonial rule helped the country to shift from the barter system of exchange to a monetary system. This monetised system helped the country to benefit from large scale production.

(iv) Spreading education The Britishers opened a number of schools in India and introduced English as the official language. Education helped the Indians to identify their basic right of freedom and fight for it. Also, the knowledge of English made them aware of the world and expanded their horizon.

(v) Eradicating social evils The Britishers enacted several laws to ban social evils like sati system, child marriage etc. They also encouraged widow remarriage.

(vi) Efficient system of administration The Britishers left behind an efficient system of administration. They also made exhaustive records of every plan, policy, agreement etc. This system of administration and record-keeping helped the independent Indian administration to efficiently manage the country.