MCQ on Indian economy Eve of independence

1. Read the following statements carefully: 

Statement 1: Commercialization of agriculture under the British rule was responsible for frequent famines between 1875 and 1900. 

Statement 2: During British rule, India began to export food grains.

In light of the given statements, choose the correct alternative from the following: 

(a) Statement 1 is true and Statement 2 is false. 

(b) Statement 1 is false and Statement 2 is true. 

(c) Both Statements 1 and 2 are true. 

(d) Both Statements 1 and 2 are false. 

2. Read the following statements carefully: 

Statement 1: Under the colonial rule, basic infrastructure (like railways, post and telegraph etc.) was developed. 

Statement 2: The real motive behind the infrastructural development in India was to strengthen the British interests. 

In the light of the given statements, choose the correct alternative from the following: 

(A) Statement 1 is true and Statement 2 is false. 

(B) Statement 1 is false and Statement 2 is true. 

(C) Both Statements 1 and 2 are true. 

(D) Both Statements 1 and 2 are false. 

3. Which of the following is NOT true about foreign trade during the colonial rule? 

(Choose the correct alternative) 

(a) India suffered from large trade deficit. 

(b) Restrictive policies of commodity production, were followed. 

(c) Britain maintained a monopoly control over India's exports and imports. 

(d) India became an exporter of primary products and an importer of finished consumer goods. 

4. From the set of the events given in Column-I and the corresponding year in Column-II, choose the incorrect pair:

Alternatives: 

(a) A - (i) 

(b) B - (ii) 

(c) C - (iii) 

(d) D - (iv) 

5. During the British rule, India's foreign trade had various features except________. 

(Choose the correct alternative to fill in the blank) 

(A) Restrictive policies of commodity production, trade and tariff 

(B) British monopoly over India's exports and imports 

(C) Free trade from India to the rest of the world 

(D) Large export surplus 

6. During the British rule in India, Indian agricultural output witnessed stagnation due to____________

(Choose the correct alternative) 

(a) Decline in handicrafts (b) Drain of Indian wealth 

(c) Land settlement (d) Introduction of railways 

7. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:

Assertion (A): The agricultural sector under the British rule was primarily the base of the sectoral growth of India

Reason (R): British rulers wanted to take maximum advantage of the Indian agricultural output, for growth of industries in England.

Alternatives:

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

(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

(C) Assertion (A) is true, but Reason (R) is false.

(D) Assertion (A) is false, but Reason (R) is true.

8. Under the British Rule, commercialisation of agriculture resulted in shifting of agricultural production from______ crops to ________ crops. (Choose the correct alternative to fill up the blanks)

(a) Cash, Food

(b) Cotton, Jute

(c) Food, Cash

(d) Jute, Food

9. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given

below:

Assertion (A): India could not develop a sound Industrial-base during the British rule.

Reason (R): Britishers followed restrictive trade policies, which strengthened Indian handicraft industries.

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, but 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.

10. Read the following statements carefully:

Statement 1: The commercialisation of Indian agriculture was coercively introduced by the colonial government.

Statement 2: Britishers had a two-fold motive behind the enforcement of food crops production (in agriculture).

In the light of the given statements, choose the correct alternative from the following:

(A) Statement 1 is true and Statement 2 is false.

(B) Statement 1 is false and Statement 2 is true.

(C) Both Statements 1 and 2 are true.

(D) Both Statements 1 and 2 are false.

11. Identify, which of the following indicates the adverse impact of British rule in India.

a) Introduction of communication networks in India

b) Change in composition of India’s foreign trade

c) Introduction of modern administrative system in India

d) Introduction of railways in India

12. Read the following statements carefully:

Statement 1: The British policies led to the collapse of India’s world-famous handicraft industries.

Statement 2: During the colonial rule in India, the contribution of the industrial sector to Gross Value Added (GVA)

increased significantly.

In light of the given statements, choose the correct option from the following:

A. Statement 1 is true and Statement 2 is false.

B. Statement 1 is false and Statement 2 is true.

C. Both Statements 1 and 2 are true.

D. Both Statements 1 and 2 are false.

13. “During the colonial period, the occupational structure showed lopsided movements.” Do you agree with the given statement? Justify your answer with valid arguments.

Ans. Yes. The occupational structure during the colonial period showed lopsided movements as:

● Parts of Madras Presidency, Bombay and Bengal witnessed a decline in the dependence of the workforce on the agricultural sector with a commensurate increase in the manufacturing and the services sectors.

● There had been an increase in the share of workforce in agriculture in states such as Orissa, Rajasthan and Punjab.

14. Discuss any two factors that lead to stagnating Indian agriculture sector during British rule.

Ans. During British rule, the agriculture sector experienced stagnation due to the following factors:

• The colonial government introduced the Land Settlement system. The zamindars used to exploit cultivators by extracting a major portion of the produce in the form of rent leading to misery among the farmers.

• Lack of irrigation facilities and low level of technology contributed to the dismal level of agricultural productivity,which aggravated the plight of the farmers.

15. “The real motive behind infrastructural development in India was to strengthen the British interests.” Do you agree with the given statement? Justify your answer with valid arguments.

Ans. Yes. Basic infrastructure such as railways, posts and telegraphs developed under the colonial regime. However,the real motive behind this development was not to provide basic amenities to the people of India but to serve various colonial interests. The roads and railways were built primarily to mobilise the army within India, drawing out raw materials from the countryside to the nearest railway station/port to export. In addition to this, communication tools like telephone and telegraph were introduced to serve the purpose of maintaining law and order.

16. State and explain any two main causes behind infrastructural development by British rule.

Ans. Two main causes behind infrastructural development by British rule were:

• Mobilisation of army: The roads were built primarily to serve the purpose of mobilising the army within India and drawing out raw materials from the countryside to the nearest railway station or the port.

• Maintenance of law and order: The introduction of the electric telegraph in India served the purpose of maintaining law and order.

(Any other valid cause to be allotted marks)

17. “Opening up of Suez Canal helped in establishing the British monopoly control over India's foreign trade”. Justify the given statement with valid arguments.

Ans. Opening of the Suez Canal provided a direct and shorter trade route for ships operating between Britain and India and avoided the need to sail around Africa. Thus, it intensified British control over India’s foreign trade as it reduced the cost of transportation and made access to the Indian market easier.

18. “Development of Railways during British rule encouraged colonial exploitation of the Indian resources.”Justify the given statement with valid arguments.

Ans. Development of Railways during British rule fostered commercialisation of Indian agriculture, which adversely affected the self-sufficiency of the village economies. Through railways, primary products were transported to the nearest ports which led to drain of India’s wealth, as this export surplus did not result in any flow of gold or silver into India. Hence, the benefits from the introduction of railways were outweighed by the country’s huge economic loss.

19 “During the colonial period, a number of socio state.” List any three such indicators that led to the worsening of India’s demographic profile. economic indicators were in a dilapidated List any three such indicators that led to the worsening of India’s demographic profile

Ans. India’s demographic indicators were in a dilapidated state during the colonial period as:

● The overall literacy level was less (below 16%).

● Life expectancy was very low (32 years).

● Alarming infant mortality rate (218/1000)

20. “The pre-independent India’s occupational structure experienced growing regional variation.” Justify the above statement with valid Justify the above statement with valid explanation.

Ans. The pre-independent India’s occupational structure experienced growing regional variation as:

● Parts of Madras Presidency, Bombay and Bengal witnessed a decline in the dependence of the workforce on the

agricultural sector with a commensurate increase in the manufacturing and the services sectors.

● There had been an increase in the share of workforce in agriculture in states such as Orissa, Rajasthan and Punjab.

21. Britain maintained a monopoly control over India’s exports and imports while the rest was allowed with a few 

other countries like_________. (Choose the correct alternative to fill in the blank) 

(i) China 

(ii) Ceylon (Sri Lanka)

(iii) Persia (Iran) 

Alternatives:

(A) Only (i) 

(B) (i) and (ii)

(C) (ii) and (iii) 

(D) (i), (ii) and (iii) 

Ans. (D) (i), (ii) and (iii)

22. Explain any two shortfalls of the industrial policy under the British rule.

Ans. 

• Discriminatory tariff policy followed under the British rule led to the systematic de-industrialisation. 

• Due to the lack of public investment, India could not develop a sound industrial base under the colonial rule. 

(Any other valid explanation to be allotted marks)

23. Discuss briefly the estimates made by notable scholars regarding the national income and per capita income during the colonial rule in India.

Ans. Several notable scholars, such as Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao, and R.C. Desai, made earnest efforts to calculate national income during the colonial era. Among these scholars, the estimates provided by V.K.R.V. Rao were considered very significant. However, the majority of these studies revealed that the country's overall real output growth during the first half of the 20th century remained below 2%, with a meagre annual per capita output growth of just 0.5%.

24. ‘During the colonial period, India’s foreign trade was characterized by a large export surplus, however, this did not result in any flow of gold or silver into India.’ Justify the given statement with valid arguments

Ans. Throughout the colonial period, India's foreign trade was characterized by a significant export surplus. 

However, this surplus had detrimental consequences for the country's economy. This export surplus did not bring gold or silver into India. Instead, it was used to cover expenses incurred by an office set up by the colonial government in Britain, the expenses on the war fought by the British government, and the import of invisible items, all contributed to the drain of India's wealth.

Answer Keys

1. Ans. (c) Both Statements 1 and 2 are true.

2. Ans. (C) Both Statements 1 and 2 are true.

3. Ans. (a) India suffered from a large trade deficit

4. Ans. (b) B-(ii)

5. Ans. (C) Free trade from India to the rest of the world

6. Ans. (c) Land settlement

7. Ans. (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

8. Ans. (c) Food, Cash

9. Ans. (C) Assertion (A) is true, but Reason (R) is false.

10. Ans. (A) Statement 1 is true and Statement 2 is false.

11. Ans. b) Change in composition of India’s foreign trade

12. Ans. A. Statement 1 is true and Statement 2 is false.