All questions of Indian Economy On The Eve Of Independence for Humanities/Arts Exam

The correct answer is option 'C' - Compound annual growth rate.

Explanation:

- Compound Annual Growth Rate (CAGR) is the rate at which an investment grows over a specific period of time, assuming that the profits are reinvested.
- CAGR is a financial metric that can be used to calculate the average annual growth rate of an investment over a specific period of time.
- CAGR is often used to compare the performance of different investments, especially those that have different starting and ending values.
- It is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered.
- The formula for CAGR is: [(Ending Value / Beginning Value)^(1/n)] - 1, where n is the number of years.
- CAGR is expressed as a percentage and is a useful tool for measuring the performance of investments over time.

Example:

Suppose you invested $10,000 in a stock that had a value of $12,000 after one year, $15,000 after two years, and $18,000 after three years. To calculate the CAGR of this investment over the three-year period, the formula would be:

CAGR = [(18,000 / 10,000)^(1/3)] - 1 = 16.07%

This means that the investment had an average annual growth rate of 16.07% over the three-year period.

Conclusion:

CAGR is an important financial metric that can be used to measure the performance of investments over a specific period of time. It is commonly used by investors, analysts, and financial institutions to compare the performance of different investments and to evaluate their potential returns.

Explanation:

Low productivity in the agriculture sector can be attributed to various factors. However, the most significant factor is the low level of technology used in farming practices. Here is a detailed explanation of how technology affects productivity in agriculture:

Impact of Low Level of Technology on Agriculture Productivity:

1. Inefficient Use of Resources: The use of outdated tools and equipment in agriculture results in an inefficient use of resources. This includes the inefficient use of water, fertilizers, and labor.

2. Poor Crop Management: Low levels of technology in agriculture result in poor crop management practices. This includes poor soil preparation, inadequate pest and disease management, and inefficient harvesting practices.

3. Low-Quality Seeds: The use of low-quality seeds in agriculture results in low yields, poor crop quality, and increased susceptibility to pests and diseases.

4. Limited Knowledge: Low levels of technology in agriculture result in limited knowledge of modern farming practices. This includes limited knowledge of crop management, soil fertility, and pest and disease management.

5. Limited Access to Information: Limited access to information on modern farming practices, crop varieties, and market information hinders farmers' ability to make informed decisions.

Conclusion:

In conclusion, the low level of technology used in agricultural practices is the primary factor that hinders productivity in the agriculture sector. Therefore, there is a need for investment in modern technology, including modern farming practices, equipment, and information systems, to improve productivity in the agriculture sector.

Whereas, the jute textile industries, controlled by foreigners, were limited to the Eastern part (Bengal). Further, some other industries started coming up after the second world war for example- sugar, paper, cement, steel, and iron industry.

A systematic and modern population census, in its present form was conducted non synchronously between 1865 and 1872 in different parts of the country. This effort culminating in 1872 has been popularly labeled as the first population census of India However, the first synchronous census in India was held in 1881.

10 years

The Suez Canal is an artificial sea-level waterway in Egypt the Mediterranean Sea through the Red Sea via the Gulf of Suez. Construction began in September 1859 and was completed in November of 1869, 10 and a half years later. The Suez Canal is around 190 km in length.

B) Postal service

The correct answer for the question is option 'C', which states that the mass illiteracy rate at the time of India's independence was 0.83. Let's explore the context and significance of this answer in detail.

Context:
India gained independence from British rule on August 15, 1947. At the time of independence, the country faced numerous challenges, one of which was widespread illiteracy. Illiteracy refers to the inability to read and write, and it is a significant barrier to social and economic development. Overcoming illiteracy was a priority for the newly independent Indian government.

Explanation:
To understand the answer, it is essential to interpret the value of 0.83 in the given context. The value represents the illiteracy rate, expressed as a decimal fraction, at the time of India's independence. In other words, it signifies the proportion of the population that was unable to read and write.

At 0.83, the illiteracy rate indicates that approximately 83% of the population in India was illiterate at the time of independence. This suggests that the majority of the Indian population lacked basic education and literacy skills, posing a significant challenge for the nation's progress and development.

Significance:
The high illiteracy rate in India at the time of independence was a pressing concern for the new government. Addressing this issue was crucial for achieving social and economic development, as literacy plays a vital role in empowering individuals, reducing poverty, and promoting overall progress.

The Indian government recognized the importance of education and literacy in nation-building and initiated various measures to tackle illiteracy. These efforts included the establishment of schools, adult literacy programs, and initiatives to promote education in rural areas. Over time, these endeavors have significantly contributed to improving literacy rates in the country.

Today, India has made substantial progress in reducing illiteracy, with the literacy rate steadily increasing over the years. However, challenges still remain, particularly in remote and marginalized communities. The government continues to focus on expanding access to quality education and addressing the remaining pockets of illiteracy.

In conclusion, the illiteracy rate in India at the time of independence was approximately 0.83, indicating that around 83% of the population was illiterate. This underscores the significance of education and the efforts made by the Indian government to combat illiteracy and promote literacy as a crucial driver of development.

Economic infrastructure refers to the basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation, communication, banking, and power. In this question, all of these options are correct and fall under the category of economic infrastructure.

Communication:
Communication involves the exchange of information and ideas between individuals, organizations, or countries. This includes various means of communication such as telephone, email, internet, and postal services. Communication infrastructure is essential for the smooth functioning of businesses, governments, and individuals.

Banking:
Banking infrastructure includes financial institutions, such as banks, which provide various financial services such as loans, deposits, and investments. Banks play a crucial role in the economy by facilitating transactions, managing risks, and providing financial support to businesses and individuals.

Power:
Power infrastructure includes the generation, transmission, and distribution of electricity. This infrastructure is essential for the functioning of businesses, governments, and households. It is necessary for running various appliances, machinery, and equipment, as well as for lighting and heating homes and offices.

All of these:
All of the above options are crucial components of economic infrastructure. Without communication, banking, and power infrastructure, the economy cannot function efficiently. These infrastructures support various economic activities and facilitate the smooth functioning of businesses, governments, and individuals.

Explanation:
The primary sector includes activities related to extraction and production of natural resources such as agriculture, mining, fishing, forestry, etc. The secondary sector includes activities related to manufacturing and construction, while the tertiary sector includes activities related to services such as healthcare, education, finance, entertainment, etc.

According to the given information, the largest share of the workforce, which is 72%, is engaged in the primary sector. This means that a significant majority of the workforce is involved in activities related to the extraction and production of natural resources. This is not surprising since India is still largely an agrarian economy, with a significant population dependent on agriculture for their livelihood.

It is worth noting that the share of the workforce in the tertiary sector has been steadily increasing over the years, as India undergoes a process of economic transformation. However, the primary sector still employs a significant portion of the workforce, especially in rural areas where agriculture is the main source of livelihood.

In conclusion, the fact that the largest share of the workforce is engaged in the primary sector highlights the importance of agriculture and other natural resource-based activities in the Indian economy.

The main interest of the Zamindars was to collect rent.

Explanation:
Zamindars were a class of landowners in India during the colonial period. They were granted large landholdings by the British East India Company or the British government in exchange for the collection of revenue from the land. The main interest of the Zamindars was to collect rent from the peasants who cultivated the land under their control.

Reasons for their interest in collecting rent:
1. Source of income: Rent collection was the primary source of income for the Zamindars. They relied on the revenue collected from the peasants to sustain their lifestyle and meet their financial obligations.
2. Revenue obligation to the British: The Zamindars had to pay a fixed amount of revenue to the British authorities as per the terms of their land grant. The revenue collected from the peasants was used to fulfill this obligation.
3. Privileges and status: The Zamindars enjoyed certain privileges and social status in the feudal society. Collecting rent from the peasants reinforced their position of power and authority within the local community.
4. Control over land: The Zamindars had control over vast tracts of land. By collecting rent, they maintained their control over the land and ensured that the peasants remained economically dependent on them.
5. Investment and wealth accumulation: Rent collection provided the Zamindars with the means to invest in other ventures and accumulate wealth. They could use the surplus revenue for personal investments or to acquire more land, further expanding their influence and income.

Conclusion:
The main interest of the Zamindars was to collect rent as it served as their primary source of income, fulfilled their revenue obligations to the British, maintained their privileges and status, reinforced their control over land, and facilitated wealth accumulation and investment.

False Statement: Indian economy at the time of independence was an industrial economy.

Explanation:

Background: The Indian economy was under British rule for almost 200 years, and it suffered from severe exploitation and neglect. The British Raj established a system of governance that aimed to extract resources from India and send them to Britain. The Indian economy was primarily agrarian, and industrialization was at a nascent stage at the time of independence.

Agriculture as the principal occupation: On the eve of independence, agriculture was the principal occupation of people, and it contributed to a significant share of the Indian economy. Around 75% of the population was engaged in agriculture, and it accounted for almost 50% of the GDP.

Railways as a means to enlarge market size: The British Raj developed railways in India primarily to facilitate the transportation of raw materials from the interiors to the ports. It also helped the British to enlarge the size of the market for British India. The railways were not developed to boost the Indian economy or to benefit the Indian people.

Indian economy as a source of raw material and market: The British Raj viewed India as a source of raw materials for the British industry and a market for finished goods. India was forced to export primary commodities like cotton, jute, tea, and raw materials like iron and coal to Britain. In return, India had to import finished goods from Britain, which led to a trade imbalance.

Conclusion: The Indian economy at the time of independence was not an industrial economy, but it was primarily agrarian. The British Raj exploited India's resources and neglected its development, which led to a weak and underdeveloped economy. India had to rebuild its economy from scratch after independence.

Establishment of TISCO

Tata Iron and Steel Company (TISCO) is one of the oldest and largest steel companies in India. It was established in the year 1907 in Jamshedpur, Jharkhand.

Reason for establishment

The main reason for the establishment of TISCO was to utilize the abundant iron ore and coal reserves in the region and to provide employment opportunities to the people of the area.

Founder of TISCO

TISCO was founded by Jamsetji Tata, a renowned Indian businessman, philanthropist, and visionary.

Growth of TISCO

Over the years, TISCO has grown exponentially and has become one of the leading steel manufacturers in the world. It has diversified into various sectors such as engineering, chemicals, power, and hospitality.

Impact of TISCO

TISCO has played a significant role in the development of the Indian economy and has been instrumental in the growth of the steel industry in India. It has also contributed immensely to the social and economic development of the region where it is located.

Conclusion

In conclusion, TISCO was established in the year 1907 by Jamsetji Tata with the aim of utilizing the abundant natural resources in the region and providing employment opportunities. Over the years, it has grown into one of the leading steel manufacturers and has contributed significantly to the development of the Indian economy.

Decay of Handicrafts

The decay of handicrafts in India was caused by various factors. These are discussed below:

British Tariff Policy
The British tariff policy imposed high tariffs on Indian handicrafts, making them uncompetitive in the international market. This led to a decline in demand for Indian handicrafts, which in turn affected the livelihoods of artisans.

Competition from Manmade Machines
The introduction of manmade machines led to a decline in demand for handmade goods. The mechanization of production processes allowed manufacturers to produce goods in large quantities, which were cheaper and of consistent quality. This made it difficult for artisans to compete with machine-made products.

New Demand Patterns
The changing demand patterns of consumers also contributed to the decay of handicrafts. With the rise of industrialization, people began to prefer machine-made products over handmade ones. The demand for traditional handicrafts declined, and artisans found it difficult to sustain their livelihoods.

All of the above
The decay of handicrafts in India was caused by a combination of factors, including the British tariff policy, competition from manmade machines, and changing demand patterns. These factors collectively contributed to the decline of handicrafts in India and had a significant impact on the livelihoods of artisans.