All questions of Indian Economy On The Eve Of Independence for Commerce Exam

10 years

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 Inefficient Use of Resources: The use of outdated tools and equipment in agriculture results in an inefficient use of resources.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.

B) Postal service

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.

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.

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.

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.

The Colonial Government's Policy of Deindustrialization in India
The primary reason for the colonial government's policy of deindustrialization in India was to turn India into a market for British finished goods. This strategy had several implications and consequences for India's economy and society.
Economic Exploitation
- The British colonial government aimed to extract wealth from India to fuel Britain's industrial revolution.
- By deindustrializing India, the British dismantled local industries, ensuring that Indian artisans and craftsmen could not compete with British manufactured products.
Market for British Goods
- India was transformed into a captive market for British finished goods, which were cheaper and often of lower quality than local products.
- This shift led to a decline in traditional industries like textiles, pottery, and metalwork, as foreign goods flooded the market.
Impact on Indian Economy
- The deindustrialization resulted in widespread unemployment among artisans and workers, leading to economic distress and poverty.
- The shift in focus from indigenous industries to importation of British goods stifled India's economic self-sufficiency and innovation.
Conclusion
The British colonial policy of deindustrialization was primarily designed to benefit British economic interests by converting India into a market for finished goods. This not only led to the decline of local industries but also had long-term detrimental effects on the Indian economy, perpetuating poverty and dependency on British products.

Explanation:
The decline of the handicraft industry in India during the British rule can be attributed to several factors. However, the main reason behind this decline was the economic policies of the British that favored the British textile industry over Indian handicrafts.

Free Export of Raw Material
The British allowed free export of raw materials like cotton, silk, and jute from India. This led to the growth of the British textile industry as they could get a steady supply of raw materials at a low cost. On the other hand, the Indian handicraft industry was dependent on these raw materials for its production. With the free export of raw materials, the cost of production for the handicraft industry increased, leading to a decline in the industry.

Heavy Duty on Export of Finished Goods
The British imposed heavy duties on the export of finished goods from India to Britain. This made Indian handicrafts more expensive in the British market, reducing the demand for these products. As a result, the Indian handicraft industry suffered a setback.

Free Import of Final Goods
The British allowed free import of finished goods from Britain to India. This flooded the Indian market with cheap British goods, making it difficult for Indian handicrafts to compete. The British goods were of superior quality and were available at a lower price. This led to a decline in the demand for Indian handicrafts.

Heavy Duty on Export of Indian Handicraft
The British imposed heavy duties on the export of Indian handicrafts to other countries. This made it difficult for the Indian handicraft industry to expand its market beyond the Indian subcontinent. As a result, the industry could not take advantage of the growing international market.

Conclusion
Thus, the economic policies of the British were responsible for the decline of the handicraft industry in India. The policies favored the British textile industry and made it difficult for Indian handicrafts to compete in the international market. This led to a decline in the industry, which had a significant impact on 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.

Overview of Trade Restrictions Between India and Britain
The trade relationship between India and Britain has historically been shaped by various economic policies, especially during the colonial period. The restrictions placed on imports and exports were significant.
Percentage of Restricted Trade
- More than 50% of the trade between India and Britain was restricted.
- This implies that a significant portion of commodities traded was subject to regulations, tariffs, and quotas.
Impact on Economic Relations
- The restrictions were largely imposed by British economic policies aimed at controlling Indian markets.
- Such policies favored British industries while limiting the growth of local Indian businesses.
Reasons for Restrictions
- Colonial Control: The British aimed to maintain economic dominance over India.
- Protectionism: Restrictions were often justified under the guise of protecting British economic interests.
- Monopolistic Practices: The British sought to monopolize resources and trade routes, limiting Indian access to international markets.
Consequences of Restricted Trade
- Economic Dependency: India became heavily dependent on British goods.
- Stifled Growth: Local industries were unable to flourish due to the lack of fair competition.
- Social Impact: The restrictions led to economic disparities and social unrest within India.
Conclusion
Understanding the extent of trade restrictions between India and Britain provides insight into the historical economic dynamics that shaped both nations. The answer is correctly identified as "More than 50%," highlighting the significant impact of these trade policies on India's 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.

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.