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Test: Indian Economy On The Eve Of Independence - 1 - UPSC MCQ


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10 Questions MCQ Test Indian Economy for UPSC CSE - Test: Indian Economy On The Eve Of Independence - 1

Test: Indian Economy On The Eve Of Independence - 1 for UPSC 2025 is part of Indian Economy for UPSC CSE preparation. The Test: Indian Economy On The Eve Of Independence - 1 questions and answers have been prepared according to the UPSC exam syllabus.The Test: Indian Economy On The Eve Of Independence - 1 MCQs are made for UPSC 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Indian Economy On The Eve Of Independence - 1 below.
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Test: Indian Economy On The Eve Of Independence - 1 - Question 1

Which of the following economist estimated per capita income during colonial period

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 1

Among the notable estimators — Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C. Desai — it was Rao, whose estimates during the colonial period was considered very significant. However, most studies did find that the country’s growth of aggregate real output during the first half of the twentieth century was less than two per cent coupled with a meagre half per cent growth in per capita output per year.

Test: Indian Economy On The Eve Of Independence - 1 - Question 2

What was the rate of growth of real output in our country during the first half of the twentieth century

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 2

The growth of the aggregate real output (GDP) was less than 2% during the first half of the 20th century and growth of per capita income was just 0.5%.

So option D is correct.

Test: Indian Economy On The Eve Of Independence - 1 - Question 3

What was the percentage of population dependent directly or indirectly on agriculture

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 3

India's economy under British rule remained primarily agrarian - around 85% country's population lived in villages and derived livelihood directly or indirectly through agriculture.

Agriculture, with its allied sectors, is the largest source of livelihoods in India. 70 percent of its rural households still depend primarily on agriculture for their livelihood, with 82 percent of farmers being small and marginal. In 2017-18, total food grain production was estimated at 275 million tonnes (MT).

So option A is correct.

Test: Indian Economy On The Eve Of Independence - 1 - Question 4

Reason for low productivity in agriculture sector

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 4

Low productivity in agriculture is due to low level of technology. In India farm farmers are still using poor and old agriculture technology of farming. in some areas farmer still do agriculture for survival.

So option B is correct.

Test: Indian Economy On The Eve Of Independence - 1 - Question 5

Capital goods industries are those

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 5

Capital goods industry means industries which can produce machine, tools etc. which are, in turn, used for producing articles for current consumption.

So option B is correct.

Test: Indian Economy On The Eve Of Independence - 1 - Question 6

TISCO was incorporated in

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 6

Tata Iron and Steel Company was founded  and established on 26 August 1907.

So option C is correct.

Test: Indian Economy On The Eve Of Independence - 1 - Question 7

Identify the industries which were under the public sector during the colonial period

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 7

Industries under the public sector during the colonial period included:

  • Railways: The railways were a significant part of the public sector, facilitating transportation and trade.
  • Power generation: This sector was also managed by the government to ensure energy supply.
  • Communications: Postal services and telegraphs were developed to maintain order and facilitate communication.
  • Ports: Ports were essential for trade and were under public control to manage exports and imports.

Other industries, such as animation and IT, were not part of the public sector during this time.

Test: Indian Economy On The Eve Of Independence - 1 - Question 8

How did the opening of the Suez Canal affect India’s foreign trade?

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 8

The opening of the Suez Canal significantly impacted India's foreign trade by enhancing British control. Key points include:

  • The Suez Canal, opened in 1869, provided a direct trade route between Britain and India.
  • It reduced transportation costs, making it easier for British goods to reach Indian markets.
  • As a result, more than half of India's foreign trade was restricted to Britain, limiting trade with other nations.
  • India primarily exported raw materials while importing finished goods, reinforcing British economic dominance.
  • This dynamic created an export surplus that did not benefit the Indian economy, leading to a drain of wealth.
Test: Indian Economy On The Eve Of Independence - 1 - Question 9

Which of the following contributed to the dismal level of agricultural productivity during the colonial times?

i) Low levels of technology,

ii) Lack of irrigation facilities

iii) Abundant use of fertilisers

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 9

The use of fertilizers was negligible. It also added up to aggravate the plight of the farmers.

So option B is correct.

Test: Indian Economy On The Eve Of Independence - 1 - Question 10

Why did the export surplus during the colonial period not benefit India’s economy?

Detailed Solution for Test: Indian Economy On The Eve Of Independence - 1 - Question 10

The export surplus during the colonial period did not benefit India's economy for several reasons:

  • The surplus was primarily used for British war expenses and administrative costs.
  • India's foreign trade was largely controlled by Britain, limiting benefits to the local economy.
  • Essential commodities, such as food grains and clothing, were exported, leading to shortages.
  • Investment in local industries was minimal, hindering economic development.
  • The focus on cash crops for export reduced the production of food crops, impacting food security.
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