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Test: The Economic Impact of British Rule in India- 2 - UPSC MCQ


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Test: The Economic Impact of British Rule in India- 2 - Question 1

Dadabhai Naoroji first put forward his Theory of Drain of Wealth in his paper

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 1

  • Dadabhai Naoroji, an influential Indian political leader and thinker, first introduced the Theory of Drain of Wealth in his paper "England’s Debt to India."which he presented at the gathering of the East India Association in London (1867)

  • This theory highlighted how Britain was economically exploiting India by transferring wealth to England, leading to poverty in India.

  • The paper detailed the mechanisms of economic drain, including unfavorable trade practices and the outflow of Indian resources and revenues.

  • Naoroji's work was pivotal in raising awareness about the economic impact of British rule in India.


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Test: The Economic Impact of British Rule in India- 2 - Question 2

Before the First World War nearly 97% of the British capital investment in India was made in

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 2

Around 97% of British capital Investments in India before first world war was in the administration, plantation, transport, and finance. The main motive was commercial penetration of India and its exploitation.

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Test: The Economic Impact of British Rule in India- 2 - Question 3

The commodity structure and direction of India‘s foreign trade was changed by

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 3

Correct Answer :- b

Explanation : Direction of foreign trade means those countries with which India has trade ties. Direction of Indian foreign trade has undergone a considerable change after independence by dutch.

Test: The Economic Impact of British Rule in India- 2 - Question 4

Who said: “The British rule was a bleeding drain from India”?

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 4
In 1867, Dadabhai Naoroji put forward the 'drain of wealth' theory in his book Poverty and Un-British Rule in India. He put forward the idea that Britain was draining and bleeding India and that, too, for nothing. ... According to him, the British Empire in the form of Home Charges drained the wealth from India
Test: The Economic Impact of British Rule in India- 2 - Question 5

The British rulers put the blame for India‘s growing poverty on

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 5
India was poor before the Brits got to them. Yes they pillaged them while India was a colony, but that ended in 1948. Germany and Japan had their economies bombed into extinction during WWII. Now both of those economies are stronger than India’s is even though India has more resources and more people.

The cultural, legal and political systems of a country have more to do with whether a country is in poverty than any other  factors.
Test: The Economic Impact of British Rule in India- 2 - Question 6

The Lancashire cotton textiles were first introduced in India, in

Test: The Economic Impact of British Rule in India- 2 - Question 7

Who of the following constituted the main body of the middle class in Bengal in British India?

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 7
Constituted the main body of the middle class in Bengal in British India A zamindar, zomindar, zomidar, or jomidar, in the Indian subcontinent was an aristocrat. The term means land owner in Persian.
Test: The Economic Impact of British Rule in India- 2 - Question 8

Which of the following came to constitute the core of the rising middle class in India before the Battle of Plassey?

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 8

The company used to engage local merchants to procure goods from the market on its behalf. They were called dadni-merchants, because they received advances from the company for delivering goods under stipulated terms.

Test: The Economic Impact of British Rule in India- 2 - Question 9

How did the East India Company directly organise the drain of Bengal after acquisition of its Diwani?

Test: The Economic Impact of British Rule in India- 2 - Question 10

The Bengal famine of 1770 has been called “the English manufactured famine” because

Test: The Economic Impact of British Rule in India- 2 - Question 11

The biggest British capital investment in India was made in

Test: The Economic Impact of British Rule in India- 2 - Question 12

After 1833, the single biggest source of drain of Indian wealth to Britain was

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 12
Because after 1833 the regulations were in hands of British with authority to impart large part of their money in infrastructure to gain much profit. From india. They started various reforms in infrastructure to get easier resources for their sustainable development of their own country. (u. K)
Test: The Economic Impact of British Rule in India- 2 - Question 13

A phase (1757-1813) of British exploitation of India was marked by direct plunder and the East India Company’s monopoly trade. This period is referred to as the

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 13

The British interference in Indian politics and economy started from 1757 and since then, for roughly two centuries, she stood as the main base of the British Empire. The net outcome was the utter exploitation of India. The history of the exploitative role of British-India can be conveniently grouped into three periods:
The first is the period of ‘merchant capital’ dating from 1757 to 1813. This ‘mercantilist’ phase was marked by direct plunder and the EIC’s monopoly trade functioning through the investment of surplus revenues in the purchase of Indian finished goods for export to England and Europe.

Test: The Economic Impact of British Rule in India- 2 - Question 14

A phase (1813-1858) saw India convert rapidly into a market for Manchester textiles and a source for raw materials. This period is referred to as the

Test: The Economic Impact of British Rule in India- 2 - Question 15

From about 1860, when British-controlled banks and export-import firms appeared in India, this country entered the

Test: The Economic Impact of British Rule in India- 2 - Question 16

The trade monopoly of the East India Company in India was ended and trade with India was thrown open to all British subjects by the

Test: The Economic Impact of British Rule in India- 2 - Question 17

The East India Company’s monopoly of tea trade andtrade with China was brought to an end by the

Test: The Economic Impact of British Rule in India- 2 - Question 18

When did the East India Company change from a trading corporation to a colonial power

Test: The Economic Impact of British Rule in India- 2 - Question 19

Till the mid-eighteenth century, profits of the East India Company primarily came from

Test: The Economic Impact of British Rule in India- 2 - Question 20

Why did Indian rulers tolerate and even encourage the establishment of the Company’s factories in India?

Test: The Economic Impact of British Rule in India- 2 - Question 21

Who remarked that Indian cloth had “crept into our houses, our closets and bed chambers; curtains, cushions, chairs, and at last beds themselves were nothing but calicos or Indian stuffs”?

Test: The Economic Impact of British Rule in India- 2 - Question 22

Which of the following countries did not prohibit the import of Indian cloth or impose heavy duties?

Test: The Economic Impact of British Rule in India- 2 - Question 23

Indian silk and cotton textiles still held their sway in foreign markets until the time when the English textileindustry began to develop on the basis of new and advanced technology. When did this happen?

Test: The Economic Impact of British Rule in India- 2 - Question 24

 After 1757, how did the Company exploit the weavers of Bengal?

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 24

The correct answer is E as all the options are the reasons for how the Company exploit the weavers of Bengal.

Test: The Economic Impact of British Rule in India- 2 - Question 25

Indian handicrafts lost not only their foreign markets but also their markets in India after

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 25

The correct option is Option C. 
The british colonial policies in india proved moat ruinous for indian handicrafts. The real blow to Indian handicrafts fell after 1813, when they lost not only their foreign markets but, what was of much greater importance, their market in India itself. The Industrial Revolution in Britain completely transformed Britain’s economy and its economic relations with India.

Test: The Economic Impact of British Rule in India- 2 - Question 26

What impact did the rise of a powerful class of manufacturers have on India?

Test: The Economic Impact of British Rule in India- 2 - Question 27

When was the East India Company forced by British industrialists to grant the latter the use of 3,000 tons of its shipping every year to carry their goods to India?

Test: The Economic Impact of British Rule in India- 2 - Question 28

By 1813, the exports of British cotton goods to the East, mostly to India, increased by nearly

Test: The Economic Impact of British Rule in India- 2 - Question 29

When was it decided that agricultural India was to be made an economic colony of industrial England?

Test: The Economic Impact of British Rule in India- 2 - Question 30

 Which Indian commodity, on entering Britain had to pay a duty that was over three times its cost price?

Detailed Solution for Test: The Economic Impact of British Rule in India- 2 - Question 30

 Indian sugar had to pay on entry into Britain a duty that was over three times its cost price. In some cases duties in England went up as high as 400 per cent. As a result of such prohibitive import duties and development of machine industries, Indian exports to foreign countries fell rapidly.

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