Ied Chap 1 Question and Answers
Ied Chap 1 Question and Answers
Q. No. 1. What policies of the colonial government led to a low level of economic development
during the pre-independence period?
Ans. The policies of the colonial government that led to a low level of economic development during
the pre-independence period were:
Economic policies of the colonial government aimed at the protection and promotion of
colonial economic interests.
Q. No. 2. What was the condition of the agriculture sector at the time of Independence?
Q. No. 4. State the reasons for low agricultural productivity during the colonial period.
Ans. Reasons for low agricultural productivity during the colonial period:
Land settlement systems: Under the zamindari system, the zamindars exploited the
cultivators. They were only bothered about rent collection rather than improving the
condition of the land.
Terms of Revenue settlement: The terms of revenue settlement forced the Zamindars to act
in the above manner. Dates for depositing specified sums of revenue were fixed, failing
which the zamindars were to lose their rights.
Q. No. 5.What were the aims of economic policies pursued by the colonial government in India?
Ans. The main aims of the economic policies pursued by the colonial government in India were:
Making India a sprawling market for the finished products of those industries.
Q. No. 6.What was the condition of the Industrial sector at the time of Independence?
1. Reduce India to the status of a mere exporter of raw materials for the industries in
Britain.
2. Turn India into a sprawling market for the finished products of those industries.
A few industries came up like cotton and jute textile mills, iron, and steel apart from
manufacturing units.
Limited expansion of public sector industries. This sector was confined only to the railways,
power generation, communications, ports, and some other departments.
Q. No. 7. Trace the growth of modern industry in the second half of the nineteenth century.
Ans. During the second half of the nineteenth century, modern industry began to flourish slowly.
The cotton textile mills were located in the western parts of the country, namely,
Maharashtra and Gujarat.
The Tata Iron and Steel Company (TISCO) was incorporated in 1907.
A few other industries like cement, paper, sugar, etc. came up later.
Ans. The capital goods industry means industries that can produce machine tools which are, in turn,
used for producing articles for current consumption.
Q. No. 9.What was the condition of foreign trade under British 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 woolen clothes,
and capital goods.
The opening of the Suez Canal further intensified British control over India’s foreign trade.
Generation of a large export surplus which was used to meet various administrative and war
expenses of the British government and not for the development of India.
Q. No. 10. What factors helped the colonial government maintain monopoly control over India’s
trade?
More than half of India’s foreign trade was restricted to Britain while the rest was with
China, Ceylon (Sri Lanka), and Persia (Iran).
India was made an exporter of raw materials and an importer of finished consumer goods
and capital goods.
The Suez Canal's opening further helped intensify British control over India’s foreign trade.
Q. No. 11. What was the implication of the huge export surplus generated from India’s foreign
trade?
Ans. The generation of a large export surplus came at a huge cost to the country’s economy:
Several essential commodities – food grains, clothes, kerosene, etc. were scarcely available
in the domestic market.
The export surplus did not result in any flow of gold or silver into India.
The export surplus was used to make payments for the administrative expenses of the
British, war expenses, and import of invisible items (leading to the Drain of Indian Wealth).
Q. No. 12. Which year is regarded as the ‘Year of the Great Divide’ and what is its significance?
Ans. The year 1921 is regarded as the ‘Year of the Great Divide’.
Significance:
Before 1921, India was in the first stage of demographic transition (i.e., both the birth rate
and death rate remained very high).
After 1921, India entered into the second stage of demographic transition characterized by a
high birth rate but decreasing death rate.
Q. No. 13. Give a quantitative appraisal of India’s demographic profile during the colonial period.
Ans. The main features of India’s population during the colonial period were:
The overall literacy level was less than 16%. (Female literacy rate was 7%).
Q. No. 15. Highlight the salient features of India’s pre-independence occupational structure.
Or,
Agriculture 70-75
Manufacturing 10
Services 15-20
Regional variations in occupational structure: Parts of the then Madras Presidency, Bombay,
and Bengal witnessed a decline in the dependence of the workforce on primary activities
with a commensurate increase in the manufacturing and services sectors. However, there
had been an increase in the share of the workforce in agriculture during the same time in
states such as Orissa, Rajasthan, and Punjab.
Q. No. 16. Discuss the impact of Railways on the Indian economy during British rule.
Impacts:
It enabled people to undertake long-distance travel and thereby break geographical and
cultural barriers.
It fostered the commercialization of Indian agriculture which adversely affected the self-
sufficiency of the village economies in India.
The volume of India’s exports expanded but its benefits did not accrue to the Indian people.
Q. No. 17. What objectives did the British intend to achieve through their policies of infrastructure
development in India?
Ans. The British government intended to achieve the following objectives through infrastructural
development:
Railways were developed to market the finished products into the interiors of India.
Roads were constructed to mobilize the army within India and for carrying raw materials
from the countryside to the nearest railway station or port to send them to England.
The post and telegraph were developed to serve the objectives of maintaining law and order
situation in India.
Q. No. 18. Were there any positive contributions made by the Britishers in India? Discuss.
Ans. Yes, the positive contributions made by the Britishers in India were:
The development of roads and railways opened up new opportunities for economic and
social growth.
British rule helped the Indian economy to shift from a barter system of exchange to a
monetary system of exchange.
vii. Which of the following was not a motive for the economic policies of the colonial government
in India?
Options
a. 4, 2, 1, 3
b. 1, 4, 3, 2
c. 2, 3, 4, 1
d. 3, 4, 2, 1
Ans. Option (d) [Railways - 1850, Suez Canal – 1869, TISCO – 1907, Year of the Great Divide – 1921]
a. 1907
b. 1908
c. 1906
d. 1909
x. Which of the following is correct in respect of the public sector on the eve of independence?
xi. In which of the following ways did the British Raj impact the Indian economy the most?
a. The British made India an exporter of cotton from an exporter of cloth which led to large-scale
unemployment.
b. The establishment of railways by the British provided short-term employment for many Indians.
c. The British expanded their army with Indian sepoys and fought in wars overseas.
d. The British provided tax concessions to rural farmers and landless laborers.
xii. Identify, which of the following indicates the adverse impact of British rule in India.
xiii. Assertion (A): India became an exporter of primary products and an importer of finished
consumer and capital goods produced in Britain.
Reason (R): 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.
Options
xiv. Identify the result of the large export surplus during the colonial period.
xv. In the Swadeshi movement against the British, which started in 1905, Indians started ditching
British goods for Indian products.
Which of the following would have been the likely impact of the movement?
Options
a. Only P and R
b. Only P and S
c. Only Q and R
d. Only R and S
xvi. Assertion (A): The establishment of the Suez Canal intensified Britain’s control over India’s
foreign trade.
Reason (R): The Europeans no longer had to travel around Africa to reach India.
Options
a. 1881
b. 1891
c. 1921
d. 1931
xviii. India entered the _____ stage of Demographic Transition after the year 1921.
a. Forth
b. Second
c. Third
d. First
xix. Which one of the following witnessed an increase during the British rule in India?
b. Literacy rate
c. Female literacy
d. Life expectancy
xx. During the time of Indian independence what was the literacy rate of our country?
d. Less than 7%
xxi. During the time of Indian Independence what was the IMR?
a. 216
b. 214
c. 218
d. 220
a. 40%
b. 50%
c. 65%
d. 75%
xxiii. Which among the following state did not witness an increase in the workforce in the
manufacturing and service sector during British India?
a. Tamil Nadu
b. Karnataka
c. Kerala
d. Punjab
xxiv. Assertion (A): The British introduced railways in India in 1850, which is considered one of
their most important contributions.
Reason (R): The British had India’s best interests in mind while developing the infrastructure.
Options
1. Describe the social and economic conditions of the Indian economy on the eve of independence:
On the eve of independence in 1947, India's social and economic conditions were characterized by a
mix of challenges and opportunities:
Colonial Exploitation: India had been under British colonial rule for nearly 200 years, during which
the British exploited India's resources for their benefit. This exploitation had severely impacted
India's economy, leading to poverty and underdevelopment in many parts of the country.
Agricultural Economy: India was primarily an agrarian economy, with the majority of the population
engaged in agriculture. However, the agricultural sector was marked by low productivity, outdated
farming techniques, and land tenure systems that favored landlords over small farmers. This
resulted in widespread rural poverty and indebtedness.
Industrial Development: India had a nascent industrial sector, largely concentrated in a few urban
centres. The industrial base was underdeveloped and heavily dependent on imports for machinery
and technology. Cottage industries and small-scale enterprises were prevalent, but large-scale
industries were limited.
Social Inequality: The Indian society was characterized by deep-rooted social inequalities, including
those based on caste, religion, and gender. The caste system, in particular, perpetuated social
hierarchies and discrimination, limiting opportunities for many individuals, especially those
belonging to lower castes and marginalized communities.
Infrastructure: Infrastructure development was inadequate, with limited road and rail networks,
inadequate power supply, and poor access to healthcare and education, especially in rural areas. The
lack of infrastructure hindered economic growth and development.
Political Instability: The political landscape was marked by efforts towards independence and a
struggle for self-governance. The Indian National Congress and other nationalist movements played
a significant role in mobilizing support for independence, but there were also tensions and conflicts
between different political and religious groups.
Overall, while India had a rich cultural heritage and human resources, the country faced significant
socio-economic challenges on the eve of independence. The task of nation-building and economic
development lay ahead, requiring concerted efforts to address poverty, inequality, and
underdevelopment.
2. Identify and state the various factors that lead to the underdevelopment and stagnation of the
Indian economy
The underdevelopment and stagnation of the Indian economy can be attributed to a combination of
historical, structural, and systemic factors
key factors:
Colonial Exploitation: India's long period of colonial rule under British imperialism resulted in the
extraction of resources and exploitation of its economy for the benefit of the colonial power, leaving
India with depleted resources and a weakened economic base.
Dependency on Agriculture: India's economy has long been heavily reliant on agriculture, which
employs a significant portion of the population but often operates at subsistence levels with low
productivity. This dependency has hindered the growth of other sectors and left large segments of
the population vulnerable to poverty and economic shocks.
Bureaucratic Red Tape: Cumbersome bureaucratic procedures, regulatory hurdles, and corruption
have impeded business development and investment in India. Complex regulations and
administrative inefficiencies create barriers to entrepreneurship and discourage both domestic and
foreign investment.
Education and Skill Gap: Despite significant progress in recent decades, India continues to face
challenges in education and skill development. A large portion of the population lacks access to
quality education and vocational training, resulting in a mismatch between the skills demanded by
the economy and those possessed by the workforce.
Income Inequality: Persistent income inequality and disparities in wealth distribution have
contributed to social tensions and hindered inclusive growth. Unequal access to resources,
opportunities, and basic services perpetuates poverty and limits social mobility, constraining overall
economic development.
Population Growth: While India's large population can be a demographic dividend if properly
harnessed, rapid population growth presents challenges in terms of providing basic services,
employment opportunities, and infrastructure. Managing population growth and ensuring effective
demographic policies are essential for sustainable economic development.
3.“Indian Economy started to decline with the advent of the British rule” Justify
Several arguments support the notion that British colonial rule had a detrimental impact on the
Indian economy:
Drain of Wealth:
One of the most significant factors was the drain of wealth from India to Britain. The British colonial
administration implemented policies that systematically extracted resources from India to fuel
industrialization in Britain. This included heavy taxation, monopolistic control over Indian markets,
and exploitative land revenue systems.
The British policies favored the growth of industries in Britain at the expense of Indian industries.
Traditional Indian handicrafts and industries faced stiff competition from British manufactured
goods, leading to the decline of many indigenous industries and craftsmen.
The British introduced new land revenue systems like the Permanent Settlement in some regions
and the Ryotwari and Mahalwari systems in others. These systems often resulted in high taxation,
land alienation, and widespread impoverishment of Indian peasants, leading to agrarian distress.
Deindustrialization:
India was a major producer of textiles and other goods before British rule. However, British policies
favored the import of cheap British manufactured goods, which led to the decline of Indian
industries. This process of deindustrialization further weakened the Indian economy.
Infrastructure Development:
While the British did introduce some infrastructure development such as railways and telegraph
systems, these were primarily aimed at serving British interests, such as easier movement of goods
and administration control, rather than benefiting the Indian economy as a whole.
The British colonial rule also led to significant social and economic dislocation. The imposition of
British legal and administrative systems often disrupted traditional social structures and economic
arrangements, leading to instability and conflict.
Famine and Poverty:
The British policies exacerbated famines and poverty in India. The infamous Bengal Famine of 1943,
for example, was exacerbated by British policies such as grain requisitioning and price controls,
leading to millions of deaths.
While it's true that the Indian economy was not static before British rule and faced its own set of
challenges, the consensus among many historians and economists is that British colonial rule
significantly worsened the economic situation in India and laid the groundwork for many of the
economic challenges the country faced in the post-independence period.
4.Discuss the state of Indian economy and the reasons for the low level of development in the
economy:
Structural Issues:
Income Inequality:
Disparities in income and wealth distribution persist, widening the gap between the affluent and the
impoverished. This inequality poses social and economic challenges, hindering inclusive growth.
Despite its demographic dividend with a large, youthful population, India faces challenges in
providing adequate employment opportunities. Many workers are employed in the informal sector
with low productivity and income levels.
While India has made strides in improving literacy rates, the quality of education and skill
development remains a concern. A significant portion of the workforce lacks the skills necessary for
modern industries, limiting productivity and innovation.
Agricultural Sector:
Agriculture still employs a significant portion of the workforce, but productivity remains low due to
fragmented landholdings, outdated techniques, and vulnerability to climate change. Reforms in this
sector are slow, impacting rural incomes and overall economic growth.
Infrastructure Bottlenecks:
Environmental Sustainability:
Rapid industrialization and urbanization have led to environmental degradation and pollution.
Balancing economic growth with environmental sustainability is critical for long-term prosperity.
Despite these challenges, India possesses significant potential for growth with a large
domestic market, a vibrant entrepreneurial ecosystem, and ongoing reforms aimed at improving
ease of doing business and attracting investments. Addressing the aforementioned issues through
sustained policy measures, investment in human capital and infrastructure, and fostering innovation
can propel India towards higher levels of development and prosperity.
key points:
Subsistence Agriculture:
The predominant form of agriculture was subsistence farming, where farmers grew crops primarily
to feed themselves and their families.
Crop Diversity:
India boasted a rich variety of crops due to its diverse agro-climatic conditions. Major crops included
rice, wheat, barley, millets, pulses, sugarcane, cotton, spices, and fruits.
Traditional Techniques:
Farmers relied on traditional agricultural techniques, such as the use of wooden plows pulled by
bullocks, manual sowing and harvesting, and natural fertilizers like compost and cow dung.
The land tenure system varied across regions but generally included a mix of individual peasant
holdings, communal lands, and lands owned by feudal lords or local rulers.
. Irrigation:
Irrigation played a crucial role in agriculture, especially in areas with erratic rainfall. Traditional
methods of irrigation included wells, tanks, canals, and water lifting devices like the Persian wheel.
Zamindars and landlords exerted significant control over agricultural lands, collecting revenue from
peasants in exchange for land use. This often led to exploitation and agrarian unrest.
Impact of Seasons:
Farming activities were heavily influenced by the monsoon seasons, with the agricultural calendar
revolving around the timing of rains.
Local markets flourished where farmers traded their produce. Some regions also had well-
established trade networks for agricultural commodities.
Challenges: Despite the rich agricultural heritage, challenges such as unpredictable weather, pests,
and periodic famines were common, impacting agricultural productivity and rural livelihoods
During the British colonial period, several factors contributed to the stagnation of the agriculture
sector in India:
The British introduced oppressive land revenue systems like the Permanent Settlement (in Bengal)
and Ryotwari System (in parts of South India), which imposed heavy taxes on farmers, leaving them
with little incentive to invest in agricultural improvements.
Exploitative Policies:
British policies prioritized the export of cash crops like cotton, jute, and indigo, often at the expense
of food crops. This led to the conversion of fertile land for cash crop cultivation, neglecting food
security and local agricultural needs.
Lack of Infrastructure:
The British invested minimally in agricultural infrastructure such as irrigation, transportation, and
storage facilities. This lack of investment hindered agricultural productivity and limited farmers'
ability to access markets.
Technological Stagnation:
Agricultural techniques remained largely traditional during the British rule, with minimal investment
in research and development. This lack of technological advancement impeded productivity growth
and modernization in agriculture.
British rulers did not give much emphasis on improvement of irrigation facilities, flood controlled
Agricultural production was depend on monsoon. Hence ,production and productivity in the
countries agricultural sector were low land farmers were force to live in misery
Commercialization of agriculture:
British rulers initiated commercialization of agriculture in which they encouraged the production of
cash crops in place of food crops. As a result ,there was somewhat higher yield of cash crop in
certain areas of the country. But this did not improve the economic condition of farmers.Britishers
transformed Indian agriculture into a raw material exporting activity.
The decline of India's traditional handicraft industries indeed stands as one of the most significant
losses suffered during British colonial rule. Here's why:
Economic Exploitation: British colonial policies were designed to benefit the British economy at the
expense of India's. They imposed heavy tariffs on Indian handicrafts while flooding the Indian market
with cheap manufactured goods from Britain. This led to the collapse of many indigenous industries
as they couldn't compete with the mass-produced, machine-made products from Britain.
Disruption of Local Trade: India had a rich tradition of local trade networks that facilitated the
exchange of goods produced by different regions. British policies disrupted these networks by
favoring centralized production and distribution channels controlled by the colonial administration
or British companies. This further marginalized traditional artisans and craftsmen.
Cultural Loss: India's handicrafts were not just commodities but embodiments of its rich cultural
heritage. Each craft had deep cultural and historical significance, reflecting the diversity and
creativity of Indian society. The decline of these crafts meant the loss of cultural identity and
heritage for many communities.
Loss of Livelihoods: Millions of people relied on traditional handicrafts for their livelihoods. The
collapse of these industries led to widespread poverty and displacement, as artisans struggled to
find alternative sources of income. Many rural communities were particularly hard-hit, leading to
social and economic dislocation.
Environmental Impact: Traditional handicrafts were often eco-friendly and sustainable, utilizing
locally available materials and traditional techniques passed down through generations. The shift
towards industrial production under British rule often disregarded environmental concerns, leading
to ecological degradation and loss of biodiversity.
Overall, the decline of India's traditional handicraft industries under British rule represents not just
an economic loss, but also a loss of culture, livelihoods, and environmental sustainability. It took
decades for India to recover from this devastation and rebuild its once vibrant handicraft sector.
What are the Negative impacts of British rule in India? briefly explain the meaning of these impact
Exploitation: British rule in India involved the exploitation of resources, labor, and wealth for the
benefit of Britain. Indians were often subjected to oppressive policies, heavy taxation, and forced
labor, which enriched the British colonial rulers and private companies at the expense of the local
population.
Destruction of local industry: The British implemented policies that undermined India's traditional
industries, such as textiles and handicrafts, to favor British manufactured goods. This led to the
decline and even collapse of many local industries, causing widespread unemployment, poverty, and
economic dependency.
Deforestation: British colonial policies often prioritized the exploitation of natural resources without
regard for sustainability. Deforestation occurred as forests were cleared for agriculture, timber, and
infrastructure projects, leading to ecological imbalances, loss of biodiversity, and adverse effects on
local ecosystems and communities.
Famine: British rule exacerbated the occurrence and severity of famines in India. Policies such as the
extraction of agricultural resources, export-oriented agriculture, and inadequate relief efforts during
times of crop failure contributed to widespread hunger and mortality. The British administration's
failure to address underlying causes and provide effective relief further intensified the impact of
famines on the Indian population.
The negative impacts reflect the exploitative and extractive nature of British colonial rule in India,
which had profound social, economic, and environmental consequences for the Indian subcontinent.
Give reason
Lack of Capital Goods Industries: Capital goods industries produce machinery and equipment used in
the production of other goods. If these industries are lacking or underdeveloped, it can hinder the
overall industrial growth. Without access to efficient and modern machinery, industries may struggle
to increase productivity and output, thereby impeding growth.
Limited Role of Public Sector: The public sector plays a crucial role in providing infrastructure,
education, healthcare, and other essential services necessary for industrial development. However,
if the public sector's involvement is limited or inefficient, it can lead to inadequate infrastructure,
poor education and healthcare systems, and regulatory obstacles, all of which can hamper industrial
growth.
Low Contribution of GDP: The contribution of the industrial sector to the GDP (Gross Domestic
Product) of a country is indicative of its economic strength and development. A low contribution of
the industrial sector to the GDP suggests that the economy is predominantly reliant on other
sectors, such as agriculture or services, which might not be as conducive to sustained economic
growth. This imbalance can hinder overall economic progress and industrial expansion.
The slow growth of modern industry can be attributed to a combination of factors including the lack
of capital goods industries, limited role of the public sector, and a low contribution of the industrial
sector to GDP, all of which can impede productivity, investment, and economic development.
Give reason
Lack of Capital Goods Industries: Capital goods industries produce machinery and equipment used in
the production of other goods. If these industries are lacking or underdeveloped, it can hinder the
overall industrial growth. Without access to efficient and modern machinery, industries may struggle
to increase productivity and output, thereby impeding growth.
Limited Role of Public Sector: The public sector plays a crucial role in providing infrastructure,
education, healthcare, and other essential services necessary for industrial development. However,
if the public sector's involvement is limited or inefficient, it can lead to inadequate infrastructure,
poor education and healthcare systems, and regulatory obstacles, all of which can hamper industrial
growth.
Low Contribution of GDP: The contribution of the industrial sector to the GDP (Gross Domestic
Product) of a country is indicative of its economic strength and development. A low contribution of
the industrial sector to the GDP suggests that the economy is predominantly reliant on other
sectors, such as agriculture or services, which might not be as conducive to sustained economic
growth. This imbalance can hinder overall economic progress and industrial expansion.
The slow growth of modern industry can be attributed to a combination of factors including the lack
of capital goods industries, limited role of the public sector, and a low contribution of the industrial
sector to GDP, all of which can impede productivity, investment, and economic development.
Explain Main features, problems and policies of agriculture (institutional aspects and new
agricultural strategy
Institutional aspects and agricultural strategies can vary greatly depending on the country and its
specific socio-economic context. However, I can outline some general main features, problems, and
policies often associated with agriculture:
Main Features:
Dependency on Climate and Natural Resources: Agriculture heavily relies on climate conditions, soil
quality, and access to water resources.
Market Orientation: Agricultural production is often influenced by market demands, both domestic
and international.
Diversity: Agriculture encompasses a wide range of activities including crop cultivation, livestock
rearing, fisheries, forestry, and more.
Problems:
Climate Change: Changing weather patterns, extreme events, and rising temperatures pose
significant challenges to agricultural productivity and sustainability.
Resource Depletion: Soil degradation, water scarcity, and loss of biodiversity threaten long-term
agricultural viability.
Market Volatility: Fluctuating commodity prices and trade policies can destabilize agricultural
incomes and livelihoods.
Rural Poverty: Many agricultural communities face poverty and lack access to essential services like
education and healthcare.
Food Security: Ensuring access to sufficient, safe, and nutritious food for all remains a pressing
global challenge.
Subsidies and Support: Governments often provide subsidies, price supports, and insurance
schemes to stabilize farm incomes and incentivize production.
Research and Development: Investment in agricultural research, extension services, and technology
transfer programs can enhance productivity and sustainability.
Land Reform: Land tenure policies and agrarian reform initiatives aim to address land inequality and
promote equitable access to resources.
Market Regulation: Trade policies, tariffs, and market regulations are used to manage domestic food
supplies, promote exports, and protect domestic producers.
New Agricultural Strategies:
Precision Agriculture: Utilizes data-driven technologies like GPS, drones, and sensors to optimize
inputs and increase efficiency.
Value Chain Development: Seeks to integrate smallholder farmers into value chains, improve
market access, and enhance value-added activities.
Digital Agriculture: Harnesses digital technologies such as blockchain, IoT, and AI to revolutionize
farming practices, market access, and supply chain management.
These features, problems, and policies are dynamic and subject to change based on evolving socio-
economic, environmental, and technological factors.