CBSE Class 11 Economics Indian Economy on the Eve of Independence Assignment

Question. 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
Answer : D

Question. Which of the following economist estimated per capita income during colonial period
(a) William Digby
(b) Findley Shirras
(c) Dada Bhai Naoroji
(d) All of these
Answer : D

Question. What is another name for the service sector?
(a) Tertiary
(b) Primary
(c) Secondary
(d) Agriculture
Answer : A

Question. What was the growth rate of per capita income in India on the eve of Independence?
(a) 0.9%
(b) 0.5%
(c) 1.2%
(d) 3%
Answer : B

Question. What was the nature of the Indian economy on the eve of independence?
(a) Stagnant
(b) Backward
(c) Underdeveloped
(d) All of these
Answer : D

Question. In how many sectors is the occupational structure of India is divided?
(a) One
(b) Two
(c) Three
(d) Four
Answer : C

Question. Which of the following activities is included in the primary sector?
(a) Agriculture
(b) Services
(c) Industries
(d) All of these
Answer : A

Question. What is the tax or duty on imports called?
(a) Tariff
(b) Quota
(c) Export
(d) None of these
Answer : A

Question. What was the life expectancy at birth in India on theeve of Independence?
(a) 44 years
(b) 50 years
(c) 60 years
(d) All of these
Answer : A

Question. When was the first census data collected during British India
(a) 1882
(b) 1982
(c) 1881
(d) 1981
Answer : C

Question. In which of the following sectors is manufacturing activity included?
(a) Primary
(b) Tertiary
(c) Secondary
(d) All of these
Answer : C

Question. Year of great divide
(a) 1931
(b) 1911
(c) 1921
(d) 1941
Answer : C

Question. Where was the first iron and steel company established?
(a) Kolkata
(b) Jamshedpur
(c) Patna
(d) Ranchi
Answer : B

Question. Poor variety of seeds and low productive seeds were mainly the reason for
(a) Slow growth of Tertiary sector
(b) Slow growth of all the above three sectors
(c) Slow growth of Industrial sector
(d) Slow growth of Agriculture sector
Answer : D

Question. 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
Answer : D

Question. 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)
Answer : C

Question. 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
Answer : B

Question. 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
Answer : C

Question. 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
Answer : C

Question. Agriculture sector is also known as:
a) Tertiary sector
b) Secondary sector
c) Primary sector
d) First sector
Answer : C

Question. 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
Answer : C

Question. Decline of handicraft industries led to :
a) Massive unemployment
b) Import of finished goods
c) Both (a) and (b)
d) Neither (a) nor (b)
Answer : C

Question. 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.
Answer : D

Question. India was in the first stage of demographic transition:
a) Before 1947
b) after 1947
c) Before 1921
d) after 1921
Answer : C

Question. 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
Answer : D

Question. ___________ 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
Answer : D

Question. 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
Answer : B

Question. British rule in India for almost
a) Almost 3 centuries
b) Almost 100 years
c) Almost 2 centuries
d) Almost 150 years
Answer : C

CASE STUDY BASED QUESTIONS

I. Read the below given passage and Answer: the questions that follow

During the colonial period, the occupational structure of India showed little sign of change. The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70-75per cent while the manufacturing and the services sectors accounted for only10 and 15-20 per cent respectively. Another striking aspect was the growing regional variation. Parts of the then Madras Presidency (comprising areas of the present-day states of Tamil Nadu, Andhra Pradesh, Kerala and Karnataka), 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. However, there had been an increase in the share of workforce in agriculture during the same time in states such as Orissa, Rajasthan and Punjab.

Question. What is mean by occupational structure?
a) Distribution of working persons across different industries.
b) Distribution of working persons across different sectors
c) Both
d) None
Answer: C

Question. ___________ sector contributes major share of workforce in India during the colonial period
a) Primary
b) Secondary
c) Tertiary
d) None
Answer: A

Question. Which of the following state(s) recorded a/an increased dependence towards agricultural sector?
a) Orissa
b) Kerala
c) Bombay & Bengal presidency
d) All the above
Answer: A

Question. In the state of Tamil Nadu share of workforce in _______ sector declined and that of _______ increased
a) Industry & Agriculture
b) Industry & Service
c) Service & Agriculture
d) Agriculture & Industry
Answer: D

II. Read the below given passage and Answer the questions that follow.

There was hardly any capital goods industry to help promote further industrialisation in India. Capital goods industry means: industries which can produce machine tools which are, in turn, used for producing articles for current consumption. The establishment of a few manufacturing units here and there was no substitute to the near wholesale displacement of the country’s traditional handicraft industries. Furthermore, the growth rate of the new industrial sector and its contribution to the Gross Domestic Product (GDP) remained very small. Another significant drawback of the new industrial sector was the very limited area of operation of the public sector. This sector remained confined only to the railways, power generation, communications, ports and some other departmental undertakings.

Question. Which of the following industries is capable of further promoting industrialization in an economy?
a) Consumer goods industry
b) Chemical industry
c) Agro-based industries
d) Capital goods industry
Answer: D

Question. Which of the following industries is most affected by the deindustrialization policy of British?
a) Capital goods industry
b) Traditional handicraft industry
c) Consumer goods industry
d) public sector industry
Answer: B

Question. Which of the following is incorrect regarding industrial sector during colonial period?
a) A few manufacturing units were established
b) The contribution of industrial sector to GDP was very small
c) Growth rate of the new industrial sector was low
d) The operation of public sector was on an extensive scale.
Answer: D

Question. Which of the following was not confined to public sector
a) Railways
b) Iron & Steel industry
c) Power generation
d) Communications & ports
Answer: B

SHORT ANSWER: QUESTIONS

Question. The traditional handicrafts industries were ruined under the British rule.” Do you agree with this view? Give reasons in support of your Answer.
Answer: India was well-known for its handcraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. These products enjoyed a worldwide market because of
(i) reputation of the fine quality of material used and;
(ii) high standards of craftsmanship seen in all imports from India. However, during the British rule, the country’s world-famous handicraft industries were ruined, which not only created massive unemployment in India but also a new demand in the Indian consumer market — increasing imports of cheap manufactured goods for Britain

Question. India could not develop a sound industrial base under the British colonial rule. Even as the country’s world-famous handicraft industries declined, no corresponding modern industrial base was allowed to come up to take pride of place so long enjoyed by the former.”
In the light of the above statement, critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.
Answer: Some shortfalls of the industrial policy pursued by the British colonial administration are as follows: (i) Industrial development remained very slow. Initially, this development was confined to the setting up of cotton and jute textile mills. Subsequently, the iron and steel industries began coming up in the beginning of the 20th century, e.g. TISCO was incorporated in 1907. A few other industries in the fields of sugar, cement, paper, etc., came up after the second world war. ii) There was hardly any capital goods industry to help promote further industrialisation in India. The establishment of a few manufacturing units here and there was no substitute to the wholesale displacement of the country’s traditional handicraft industries. (iii) Low growth rate — The growth rate of the new industrial sector and its contribution to GDP remained very small. (iv) Very limited area of operation of the public sector — Public sector remained confined only to the railways, power generation, communications, ports and some other departmental undertakings

Question. “The most important characteristic of India’s foreign trade throughout the colonial period was the generation of a large export surplus. But this surplus came of a huge cost to the country’s economy.” Do you agree with the above statement? Give valid reasons in support of your Answer.
Answer: The give statement is correct to its character. India’s foreign trade during the British colonial rule generated a large export surplus but at a huge cost to the country’s economy because: (i) Several essential commodities — food grains, clothes, kerosene, etc. were scarcely available in the domestic market. (ii) The export surplus did not result in any flow of gold or silver into India. Rather, this was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war fought for the British government, and the import of invisible items. All these led to the “drain of India wealth”

Question. “The introduction of the railways in India was considered as one of the most important contributions of the British. However, the social benefits, which the Indian people gained owing to the introduction of the railways, were outweighed by the country’s huge economic loss.” Do you agree with the above statement? Give valid reasons.
Answer: The given statement is correct. No doubt, the introduction of the railways by the British was one of their most important contributions as it enabled people to undertake long distance travel and thereby break geographical and cultural barriers. However, the negative aspect of the introduction of the railways was that it fostered commercialisation of Indian agriculture which adversely affected the self-sufficiency of the village economies in India. Moreover, the benefits of the expanded volume of India’s exports rarely accrued to the Indian people. Rather, the export surplus was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war fought by the British government and the import of invisible items. All of these led to the drain of Indian wealth. Thus, the social benefits, which the Indian people gained owing to the introduction of the railways, were out weighted by the country’s huge economic loss.

Question. Highlight the salient features of India’s pre-independence occupational structure.
Answer: Salient features of India’s pre-independence occupational structure are:
(i) During the British colonial rule, the occupational structure of India showed a little sign of change. The agricultural sector accounted for the largest share of workforce (70-75%) while the manufacturing sector accounted for only 10% and the services sector only15-20%.
(ii) Another striking aspect was the growing regional variation. Parts of the then Madras Presidency (Tamil Nadu, Andhra Pradesh, Kerala and Karnataka), 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 service sectors. However, there had been an increase in the share of workforce in agriculture in Orissa, Rajasthan and Punjab

Question. Give a quantitative appraisal of India’s demographic profile during the colonial period India’s demographic profile during the British colonial rule.
Answer:
(i) 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.
(ii) Second stage of demographic transition began after1921. However, neither the total population of Indian or the rate of population growth at this stage was very high.
(iii) The various social development indicators were also not quite encouraging. Overall literacy level was less than 16%. Out of this, female literacy level was only about 7%. Due to absence or lack of adequate public health facilities, water and air-borne diseases were rampant. Over all the infant mortality rate was about 218 per thousand (present infant mortality rate is 40 per thousand).
Life expectancy was also very low — 44 years (in contrast to the present 68 years).
(iv) Extensive poverty prevailed in India during the British colonial period which contributed to the worsening profile of India’s population of the time

Question. Do you agree with the view that zamindari system brought stability to cultivation during the British rule in India? Give reason for your Answer:
Answer: The zamindari system during the British rule did not bring stability. Instead, it brought instability to Indian cultivation due to the following reasons:
i) This system led to frequent ejection of the tillers of the soil. They lost their permanent right of cultivation, and accordingly, lost permanent interest in cultivation. ii) Under zamindari system, the tillers of the soil lacked ownership rights. As a result, they had no interest in making permanent improvements on land.

Question. Explain three causes of the backwardness of Indian economy at the time of independence.
Answer: The causes of the backwardness of Indian economy at the time of independence are: i) Low production and low productivity in agriculture
ii) Decay of Indian handicrafts owing to discriminatory tariff policy of the British government.
iii) Colonial exploitation of the Indian economy

Question. Discuss in brief the causes of the backwardness of Indian agriculture at the time of independence.
Answer: Backwardness of Indian agriculture at the time of independence can be explained in terms of the following factors
i) Low production and productivity mainly caused by various systems of land settlement
ii) Low levels of technology, lack of irrigation facilities and negligible use of fertilisers contributed to the dismal level of agricultural productivity. iii) Small and fragmented holdings
iv) No incentive to invest in terracing, flood-control, drainage and desalinisation of soil.

Question. What objectives did the British intend to achieve through their policies of infrastructure development in India?
Answer:
i) The roads that were built primarily served the purposes of mobilising the army within India and drawing out raw materials from the country side to the nearest railway station or the port to send these to England or other foreign destinations.
ii) The introduction of railways by the British in 1850 fostered commercialisation of Indian agriculture, which adversely affected the self-sufficiency of the village economies in India. The benefits of exports surplus rarely accrued to the Indian people.
(i) The inland waterways, at times, proved uneconomical as in the case of the coast canal on the Orissa coast, which had to be ultimately abandoned.
(ii) The introduction of the expensive system of electric telegraph in India served the purpose of maintaining aw and order by the British colonial government. (iii) The postal services, despite serving a useful public purpose, remained all through inadequate.

LONG ANSWER: TYPE

Question. 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 developed by the British government in India was aimed at creating India as a supplier of Britain’s growing industries. The policies were targeted towards the development of Britain and boosting its economic status. India and its growth were completely ignored. Due to such policies, India became a supplier of raw materials and a market for finished goods from Britain.
The impact of such a policy in India are as follows:
1. Indian economy witnessed very low economic growth. Studies reveal that the economy was growing at a speed of two per cent during the periods 1900-1950. The British government was more interested in maintaining and developing the economy of Britain. British rule ruined the agriculture sector and handicrafts and transformed India into a supplier of raw materials.
2. Indian agriculture system was not developed before independence, it was following old techniques and it was majorly affected by the colonial rule when the farmers were instructed to grow commercial crops instead of food grains. These commercial crops like cotton and indigo were used in industries in Britain for manufacturing textile. The peasants did not get any monetary benefit from growing these crops and hence no economic development happened.
3. The British have programmed systematic deindustrialization by leading to the downfall of the handicraft industry and with the lack of investment, other industries also failed to develop. Imposing heavy export tariffs on Indian made goods led to a decrease in demand in the international market that ultimately led to the collapse of the handicraft industry
4. The money that Indian goods earned from foreign trade was not invested in the Indian economy, it was used for managing the British army and expanding their colonial reach across Asia.

Question. “The social and economic challenges before India at the time of independence were enormous.” Do you agree with the statement? Give reasons. (6 marks)
Answer: The given statement is correct. By the time India won its independence, the impact of the two-century long British colonial rule was already showing on all aspects of the Indian economy. Some of the most crucial social and economic challenges before the country were:
(i) Low level of economic growth and development — The country’s growth of aggregate real output was less than 2% per annum coupled with about 0.5% p.a. growth in per capital output.
(ii) The agricultural sector was already saddled with surplus labour and extremely low productivity. About75% of the country’s population derived livelihood directly or indirectly from agriculture. Agricultural productivity was extremely low due to low levels of technology, lack of irrigation facilities, negligible use of fertilisers, etc.
(iii) The industrial sector was crying for modernisation, diversification, capacity building and increased public investment.
• There were only a few industries in the fields of cotton and jute textile, iron and steel, sugar, cement, paper, etc.
• There was hardly any capital goods industry to help promote industrialisation in India.
• The industrial growth rate was very low.
• The public sector remained confined only to the railways, power generation, communication, ports and some other departmental undertakings.
(vi) foreign trade was oriented to feed the industrial revolution in Britain. British maintained a monopoly control over India’s exports and imports. A large export surplus generated from India ‘s foreign trade was used to make payments for the expenses incurred by an office set up the colonial government in Britain, import of invisible items, etc.; all of which led to the drain of Indian wealth.
(v) Infrastructure facilities such as railway network, roads, water transport, posts and telegraphs, etc. needed upgradation expansion and public-orientation.
(vi) Prevalence of rampant poverty and unemployment required welfare orientation of public economic policy.

ASSERTION & REASONING QUESTIONS

Read the following statements - Assertion (A) and Reason (R) and choose the correct one from the given alternatives.
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.

Question. ASSERTION (A): Agricultural productivity became low during British rule in India.
REASON (R): The productivity was low due to various systems of land settlement introduced by the colonial government.
Answer: (a)

Question. ASSERTION (A): The British undertook significant infrastructure development in India.
REASON (R): Development of infrastructure served various colonial purposes.
Answer:  (a)

Question. ASSERTION (A): The colonial government never made any sincere attempt to estimate India’s national and per capita income.
REASON (R): growth of aggregate real output during the first half of the twentieth century was less than two per cent.
Answer: n (b)

Question. ASSERTION (A): A significant drawback of the new industrial sector was the very limited area of operation of the public sector.
REASON (R): There was hardly any capital goods industry to help promote further industrialization in India.
Answer: (b)

Question. ASSERTION (A): Britain maintained a monopoly control over India’s exports and imports.
REASON (R): India had no other trading partners during British rule.
Answer: (c)

Question. ASSERTION (A): The year 1921 is described as the year of Great Divide.
REASON (R): It was in1921 that India entered first stage of Demographic transition
Answer: (c)

Question. ASSERTION (A): The British introduced the railways in India in 1850 and it is considered as one of their important contributions
REASON (R): Commercialisation of Indian agriculture adversely affected the self-sufficiency of the village economies in India.
Answer: (b)

Question. ASSERTION (A): The economic conditions of farmers improved a lot during British rule.
REASON (R): A large section of the farmers in India during the British Rule changed the crop pattern from food crops to commercial crops.
Answer: (d)

Question. ASSERTION (A): India was an export deficit country during British rule.
REASON(R): More than half of India’s foreign trade was restricted to Britain.
Answer: (d)

Question. ASSERTION (A): Under British rule, rural areas became inaccessible at times of natural calamities and famines
REASON (R): There always remained an acute shortage of all-weather roads to reach out to the rural areas
Answer: (a)

Question. ASSERTION (A): The main purpose of British Rule in India was for the development of British economy
REASON (R): Indian economy was its feeder economy.
Answer: (a)

Question. ASSERTION (A): The year 1921 is described as the year of Great Divide.
REASON (R): It was in1921 that India entered second stage of Demographic transition.
Answer: (a)

Question. ASSERTION (A): Export surplus generated by India resulted in inflow of gold & silver
REASON (R): Export surplus came at a huge cost to the country’s economy.
Answer: (d)

Question. ASSERTION (A): Opening of the Palk Strait strengthened the British stranglehold on India’s foreign trade.
REASON (R): The British trade route after 1869 was much shorter and transport cost much lesser which was in favor for the British.
Answer: (d)

Question. ASSERTION (A): Water and air-borne diseases were rampant and took a huge toll on life.
REASON (R): Public health facilities were either unavailable or were highly inadequate.
Answer: (a)

* The sole purpose of the British colonial rule in India was to reduce the country to being a feeder economy for Great Britain’s own rapidly expanding modern industrial base.
* Conditions in the Indian economy on the eve of independance

(i) Law level of economic development : the colonial govt, never made any sincere attempt to estimate India’s national and percapita income. The estimates given by Dr. Rao - growth of GDP was only 2% while the growth of percapita output was just 1/2 (0.5) percent.

(ii) Backward agricultural sector : Due to
A. Land tenure system - Zamidari system, Mahalwari system and Ryotwari system.
B. Forced commercialisation of Agriculture
C. Partitian of the country.

(iii) Less developed Industrial sector
A. De-industrialisation - decline of Indian handicraft industry.
B. Capital good industries were lacking
C. Limited operation of public sector
D. Discriminatory tarrif policy.

(iv) Unfavourable foreign trade :
(A) Net exporter of raw material and importer of finished good.
B. Britain had monopoly control on foreign trade.
C. Drain of India’s wealth.
(v) Adverse demographic condition :
A. High death rate - 40 per thousand.
B. High infant martality rate - 18 per thousand.
C. Mass Illiteracy - 83% illiterate.
D. Low life expectancy - 32 years
E. Low standard of living - people used to spend 80% to 90% of their income on basic needs.

Question

1. What was the infant mortality rate of India during British rule?
2. State the life expectancy in India during British rule.
3. What do you mean by infant mortality rate?
4. Give the name of one economist who estimated India’s per capital income during colonial period.
5. What is meant by commercialisation of agriculture?
6. What was the motive behind the de-industrialisation by the colonial Govt. in India?
7. Which industries were adiversly affected due to partition.
8. What does the export surplus mean?
9. What percentage of India’s working population was engaged in secondary and tertiary sector during British rule?

MARKS QWESTIONS

1. Mention four features of India’s agriculture on the eve of independence.
2. What were the objectives of the British Govt. in bringing about infrastructural change in the Indian economy.
3. How would you explain the drain of wealth during the British rule.
4. Discuss occupational structure of Indian economy at the time of independence.
5. State three main features of Indian economy at the time of independence.
6. Mention the state of Indian industries on the eve of independence.

6 MARKS QUESTIONS

1. Critically appraise some of the shortfalls of the industrical policy pursucs by the British colonial administration.
2. What were the main causes of India’s agricultural stagnation during the colonial period.
3. Give a quantitative appraisal of India’s demographic profile during the colonial period.
4. Were there any positive contribution made by the British in India? Discuss.

ANSWER OF ONE MARK QUESTIONS

1. Infant mortality rate was 18 per thousand.
2. Life expactancy was 32 years.
3. Infant mortality rate means number of deaths of children below the age of one year per thousand live birth.
4. Dada Bhai Nauroji, & Prof V.K.R.V. Rao
5. Commercialisation of agriculture means production of crops for sale in the market rather than for self - consumption.
6. (i) To get raw materials from India at cheap rate.
(ii) To sell British manufactured goods in Indian market at high prices.
7. Jute and textile industries.
8. When export of a country is more than import.
9. 10% in secondary sector and 18% in tertiary sector.

ECONOMY :
An economy is an organisation of economic activities which provide people with the means to work and earn a living.

• Capitalist economy : In which major economic decisions (what to produce, how to produce and for whome to produce) are left to the free play of the market forces.

• Socialist economy : In which major economic decisions are taken by the Govt. keeping in view the collective interest of the society as a whole.

• Mixed Economy : In which major economic decisions are taken by the central Govt. authority as well as are left to the free play of the market forces.

• Economic Planning : Means utilisation fo country’s resources in different development activities in accordance with national priorities.

LONG TERM GOALS / OBJECTIVES OF PLANNING
A. Modernisation - Adoption of new technology
B. Self reliance - Reducing dependence on imports.
C. Economic Growth - Increase in the aggregate output of Goods & services.
D. Equity - reduction inequality of income or wealth
E. Full employment - Refers to a situation when all the people in the working age group are actually engaged in some gainfull employment.

SHORT TERM GOELS / OBJECTIVES OR
OBJECTIVES OF FIVE YEAR PLANS
Short term objectives vary from plan to plan depending on current needs of the country. For example first plan (1951-56) focused on higher agricultural production while in second plan (1956-61) shifted the focus from agriculture to Industry. In India growth and equity are the objectives of all the five year plans. The goal of current five year plan (11th, 2007-2012) is faster, broad-based and inclusive growth.