Golden Earth Global School
Sangrur, Punjab
WORKSHEET- CHAPTER 1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
Class 12 - Economics
1. Per capita income is calculated? [1]
a) National income
× 1000 b) National income
× 100
P opulation of state P opulation of the country
c) National income
× 100 d) National income
× 1000
P opulation of state P opulation of the country
2. The main reason for stagnation in the agricultural sector during the British rule was: [1]
a) Zamindari system b) Commercialisation of agriculture
c) Poor technology d) Deindustrialisation
3. Name the economist whose estimates on GDP and per capita income during British rule are considered to be [1]
most significant.
a) V.K.R.V. Rao b) Willian Digby
c) Dadabhai Naroji d) R.C. Desai
4. De-industrialisation acted as a major setback to which Indian industry? [1]
a) Cotton textiles b) Coal
c) Handicrafts d) Iron and Steel
5. Which of the following sentences gives the best description of the Indian economy during the British rule? [1]
a) India was an agrarian economy b) India was a poor economy.
c) India was a monarchy economy d) India was a stagnant economy
6. Assertion (A): The focus of the economic policies pursued by the British government was to exploit the Indian [1]
economy as much as they could do to foster the growth process of the British economy.
Reason (R): The colonial policies changed the nature and structure of the Indian economy.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
7. Assertion (A): India developed a sound industrial base under the colonial rule. [1]
Reason (R): The country’s world famous handicraft industries declined.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
8. Statement I: During the colonial period, balance of trade remained unfavourable. [1]
Statement II: There was a large export surplus during the colonial period.
1/3
a) Both the statements are true. b) Both the statements are false.
c) Statement II is true, but statement I is false d) Statement I is true, but statement II is false.
9. Statement I: Agriculture productivity was very low during the British Rule. [1]
Statement II: In absolute terms, there was growth in agriculture sector due to expansion of aggregate area under
cultivation.
a) Both the statements are false. b) Statement-II is true, Statement-I is false.
c) Both the statements are true. d) Statement-I is true, Statement-II is false.
10. Which of the following is false regarding Positive effect of British rule? [1]
a) Introduction of Railways b) Provision of post and telegraph service
c) Development of ports d) Monopoly on foreign trade
11. Identify the statement which is not true in the context of demographic condition of India: [1]
a) Poor health facilities b) High birth rate and death rate
c) High literacy rate d) High infant mortality rate
12. What was the purpose of British economic policies? [2]
13. Give two reasons for low level of agricultural productivity during the colonial rule. [2]
14. Suez Canal was used as a highway between India and Britain. [3]
Justify the given statement with valid arguments.
15. How did railways helped people when famines occurred during the colonial period? [3]
16. The introduction of the railways in India was considered as one of the most important contributions of the [4]
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.
17. What was the impact of development and construction of railways by the British rulers on Indian economy? [4]
18. State whether the given statement is True or False: [4]
(a) During the British rule, jute mills were established in Gujarat by Indians. [1]
(b) 1941 was last census operation conducted by British in India. [1]
(c) Before 1921, India was in the second stage of demographic transition. [1]
(d) Indian agricultural sector suffered due to partition. [1]
19. Read the text carefully and answer the questions: [5]
Competition promotes the adoption of innovative technology and is, therefore, expected to open new vistas of
growth for small-scale enterprises. But the adoption of new technology needs a level playing field. Do the small
enterprises in India have it? No is the answer. Small enterprises in India do not get enough funds at a low rate of
interest as the MNCs can manage. Accordingly, they often fail to upgrade their technology to make it
competitive. Also, they fail to spend as much on advertisement and publicity as the MNCs can do to capture the
market. Thus, the survival of small enterprises in the face of stiff competition from the MNCs seems to be
doubtful. This situation is definitely comparable with the one when the Indian handicrafts were exposed to the
stiff competition from machine-made products of Britain during the British rule in India. However, the
difference is that whereas during the British rule, destruction of small enterprises could be taken as a
consequence of the colonial exploitation by the foreign government in India, no such situation exists in India
2/3
now. It is all a matter of competition in the wake of NEP (new economic policy) promoting liberalization,
privatization, and globalization of the industrial sector.
(a) During the colonial period, India's demographic profile showed:
a) all of these b) high infant mortality
c) high birth rate d) high death rate
(b) Gender bias in the society on eve of independence was indicated by:
a) literacy rate b) mortality rate
c) death rate d) life expectancy
(c) During the colonial rule, India was ________ of finished products from/to Britian.
a) net exporter b) intermediator
c) both net Importer and net exporter d) net Importer
(d) ________ is a type of cotton textile which had its origin in Bengal.
a) jute b) muslin
c) nylon d) silk
(e) Statement 1: The economic policies of the colonial government brought about a fundamental change in
the structure of the Indian economy.
Statement 2: India became a supplier of raw materials and consumer of finished industrial products from
Britain.
a) Both the statements are false. b) Statement 1 is true and Statement 2 is
false.
c) Both the statements are true. d) Statement 2 is true and Statement 1 is
false.
20. Critically appraise some of the shortfalls of the industrical policy pursued by the British colonial administration. [6]
21. Were there any positive contributions made British in India? Discuss. [6]
3/3
