Revenue from agriculture was on decline

- During the 18th century, the economic situation of India was marked by various changes and challenges. One of the correct statements regarding this period is that the revenue from agriculture was on the decline.

Reasons for the decline in agricultural revenue:

1) Land Revenue System: The British implemented the Zamindari system, which involved the collection of revenue directly from the peasants by intermediaries known as zamindars. This system led to the exploitation of the peasants, as the zamindars often demanded exorbitant amounts of revenue, leaving the farmers with little income.

2) Heavy taxation: The British imposed heavy taxes on agricultural produce, further reducing the income of the farmers. Additionally, the farmers were burdened with various other taxes and cesses, making it difficult for them to sustain themselves.

3) Decline in agricultural productivity: The 18th century witnessed a decline in agricultural productivity due to various factors such as frequent famines, lack of irrigation facilities, and the introduction of cash crops by the British. This decline in productivity led to a decrease in agricultural revenue.

Regional states of Awadh and Hyderabad became centers of Industrialization

- The second statement, which states that the regional states of Awadh and Hyderabad became centers of industrialization during the 18th century, is incorrect.

Reasons for the lack of industrialization in Awadh and Hyderabad:

1) British monopolization: The British East India Company had established a monopoly over trade and industry in India. They discouraged the growth of industries in regions like Awadh and Hyderabad, as it would have posed a threat to their own commercial interests.

2) Lack of infrastructure: The lack of proper infrastructure, such as transportation and communication networks, hindered the growth of industries in these regions. Without adequate infrastructure, it was difficult for industries to flourish and expand.

3) Political instability: Both Awadh and Hyderabad faced political instability during the 18th century. This instability made it challenging to establish and sustain industries, as there was a lack of stability and protection for business ventures.

Overall, the economic situation of India during the 18th century was marked by a decline in agricultural revenue due to factors such as the land revenue system, heavy taxation, and a decline in agricultural productivity. However, the regional states of Awadh and Hyderabad did not become centers of industrialization, primarily due to British monopolization, lack of infrastructure, and political instability. Thus, the correct answer to the given question is option 'A' - only statement 1 is correct.