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The Economic Impact of British Rule in India MCQs for UPPSC (UP) Exam

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  • Topic: The Economic Impact of British Rule in India
  • Type of Questions: MCQs with solutions
  • Number of Questions: 48
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How much land revenue did the zamindars, under Permanent Settlement, have to pay to the East India Company?
  • a)
    4/5th of the rental derived from peasants.
  • b)
    10/11th of the rental derived from peasants
  • c)
    6/8th of the rental derived from peasants.
  • d)
    3/5th of the rental drived from peasant.
Correct answer is option 'B'. Can you explain this answer?

They were given hereditary rights of succession of the lands under them. The amount to be paid by the landlords was fixed. It was agreed that this would not increase in future (permanent in nature). The fixed amount was 10/11th portion of the revenue for the government and 1/10th was for the Zamindar.

The British introduced a temporary zamindari settlement under which the zamindars were made owners of land but the revenue they had to pay was revised periodically. Where was this done?
  • a)
    Hyderabad and South India
  • b)
    The Punjab
  • c)
    Central India and Avadh
  • d)
    The Konkan and Malwa
Correct answer is option 'C'. Can you explain this answer?

Temporary Zamindari Settlement in Central India and Avadh

The British colonial government introduced the zamindari system as a way to collect revenue from the agricultural land in India. Under this system, the zamindars were made owners of land and were responsible for paying revenue to the government. However, the system had its flaws and led to exploitation and impoverishment of the peasants who worked on the land.

To address these issues, the British introduced a temporary zamindari settlement in Central India and Avadh. This settlement was different from the permanent zamindari settlement introduced earlier in Bengal, Bihar and Orissa.

The temporary zamindari settlement was introduced after the Indian Rebellion of 1857 as a way to gain the trust of the local elites and ensure stability in the region. The settlement was only meant to last for a period of 30 years and the revenue paid by the zamindars was revised periodically to reflect the changing economic conditions.

Features of the Temporary Zamindari Settlement

Some of the key features of the temporary zamindari settlement were:

1. Ownership of Land: The zamindars were made owners of the land and were responsible for paying revenue to the government.

2. Periodic Revision of Revenue: The revenue paid by the zamindars was revised every 10 years to reflect the changing economic conditions.

3. No Permanent Transfer of Ownership: Unlike the permanent zamindari settlement, the temporary settlement did not allow for the permanent transfer of ownership of land.

4. Limited Powers of the Zamindars: The zamindars were given limited powers and were not allowed to evict peasants from the land or extract excessive rents.

Impact of the Temporary Zamindari Settlement

The temporary zamindari settlement had a mixed impact on the region. On the one hand, it helped to stabilize the region after the Indian Rebellion of 1857. The settlement also helped to improve the relationship between the British colonial government and the local elites.

However, the settlement did little to address the underlying issues of landlessness and exploitation faced by the peasants. The periodic revision of revenue meant that the zamindars were constantly looking for ways to increase their income, often at the expense of the peasants.

Conclusion

In conclusion, the temporary zamindari settlement in Central India and Avadh was introduced as a way to address the flaws of the permanent zamindari settlement. While it had some positive impact on the region, it did little to address the underlying issues of landlessness and exploitation.

The first railway line in India was opened to traffic in 1853.It ran between
  • a)
    Poona and Baroda
  • b)
    Bombay and Thana
  • c)
    Calcutta and Patna
  • d)
    None of these
Correct answer is option 'B'. Can you explain this answer?

Surbhi Nambiar answered
Opening of the First Railway Line in India

Introduction:
The first railway line in India was opened to traffic in 1853. It was an important event in the history of Indian transportation as it marked the beginning of a new era of faster and more convenient travel.

The Route:
The railway line ran between Bombay (now Mumbai) and Thane. The distance covered by the line was 34 km. It was the first railway line to be built in Asia.

Construction:
The construction of the railway line was initiated by Lord Dalhousie, the Governor-General of India at that time. The line was constructed by the Great Indian Peninsula Railway (GIPR) company. The work started in 1851 and was completed in 1853.

Significance:
The opening of the first railway line in India had a significant impact on the country's transportation system. It provided a faster and more reliable means of transport for goods and people. It helped to connect different regions of the country and facilitated the movement of people and goods across the country.

Impact:
The railway line had a significant impact on the development of the country. It helped to promote trade and commerce and facilitated the movement of people across the country. It also led to the growth of cities and towns along the railway line.

Conclusion:
In conclusion, the opening of the first railway line in India was a significant event in the country's history. It marked the beginning of a new era in transportation and had a significant impact on the country's development.

Who said: “The British rule was a bleeding drain from India”?
  • a)
    Dadabhai Naoroji
  • b)
    M.G. Ranade
  • c)
    R.C. Dutt
  • d)
    B.C. Pal
Correct answer is option 'A'. Can you explain this answer?

Aman Majumdar answered
Answer:

Dadabhai Naoroji said the statement "The British rule was a bleeding drain from India".

Explanation:

Dadabhai Naoroji was a prominent Indian nationalist leader and a member of the Indian National Congress. He was the first Indian to be elected to the British Parliament. In his book "Poverty and Un-British Rule in India", he analyzed the economic impact of British rule on India. He argued that the British were exploiting India and that colonialism was draining the country of its wealth. He called this phenomenon the "drain of wealth" or the "bleeding drain" theory. He calculated that India was losing about 200 million pounds annually to Britain, which was more than half of India's total annual revenue. This theory became an important part of the Indian nationalist movement and helped to galvanize opposition to British rule. Naoroji's work inspired other Indian nationalists, such as M.G. Ranade, R.C. Dutt, and B.C. Pal, to write about the economic exploitation of India by the British.

Which of the following argued before the Welby Commission in 1895 that the amount being drained away represented a potential surplus which might have raised Indian income considerably if invested properly inside India?
  • a)
    Dadabhai Naoroji
  • b)
    R.P. Dutt
  • c)
    Raja Ram Mohan Roy
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?

The drain theory had sever critics from the beginning. The drain, it has been argued, was greatly exaggerated by nationalists, since foreign trade and export surplus could amount to only a small part of India’s national income. But surely Naoroji had a point here when he argued (before the Welby Commission in 1895) that the amount being drained away represented a potential surplus which might have raised Indian income considerably if invested properly inside India.

Indian handicrafts lost not only their foreign markets but also their markets in India after
  • a)
    1700
  • b)
    1757
  • c)
    1813
  • d)
    1857
Correct answer is option 'C'. Can you explain this answer?

The decline of Indian handicrafts in India and abroad can be attributed to various factors. However, the most significant factor was the colonial policies of the British.

Impact of British colonial policies on Indian handicrafts:

1. British East India Company's monopoly: The British East India Company had a monopoly over trade in India. They controlled the production, distribution, and sale of Indian handicrafts. This gave them immense power to manipulate the market and price of these products, leading to a decline in demand for Indian handicrafts.

2. Imposition of heavy taxes: The British imposed heavy taxes on Indian handicrafts, making them expensive and unaffordable for the common people. This led to a decline in demand for these products and a loss of markets in India.

3. Promotion of British goods: The British promoted their own manufactured goods from England, which were cheaper and of better quality than Indian handicrafts. This led to a decline in demand for Indian handicrafts in both India and foreign markets.

4. Destruction of Indian handicraft centers: The British destroyed Indian handicraft centers, which were the backbone of the Indian economy. This led to a loss of skilled artisans, and the decline of Indian handicrafts.

The decline of Indian handicrafts in India and abroad was a gradual process. However, the passing of the Charter Act of 1813, which allowed the import of British manufactured goods into India duty-free, was a significant blow to Indian handicrafts. This led to a decline in demand for Indian handicrafts, loss of markets in India, and eventually the decline of Indian handicrafts.

Before the First World War nearly 97% of the British capital investment in India was made in
  • a)
    Plantation Industry
  • b)
    Railways and Transport
  • c)
    Banking and Insurance
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?

Aarya Dey answered
Investments in India before WWI

Overview:
Before the First World War, India was a British colony and a significant source of capital investment for the British Empire. The majority of British capital investment in India was made in three major sectors: plantation industry, railways and transport, and banking and insurance.

Plantation Industry:
The plantation industry in India included tea, coffee, rubber, and other cash crops. British investors heavily invested in this sector to exploit the vast natural resources of India. India was the largest producer of tea in the world, and the British invested heavily in tea plantations in Assam and Darjeeling. The plantation industry was a profitable venture for the British, as they could extract cheap labor and raw materials from India.

Railways and Transport:
The British also invested heavily in the development of railways and transport infrastructure in India. The railways were crucial for the British to transport raw materials and finished goods from one part of the country to another. The British invested in railway lines connecting major cities and towns, and the railway network expanded rapidly during this period. The British also invested in the development of ports and harbors, which facilitated the movement of goods and people across the country.

Banking and Insurance:
The British also invested heavily in the banking and insurance sector in India. The British established banks and insurance companies to finance their colonial ventures in India. The banks provided loans to the British planters and traders, and the insurance companies insured their cargoes and goods against loss or damage.

All of the above:
All three sectors mentioned above were crucial for the British to exploit the resources of India and maintain their colonial rule. The British invested heavily in these sectors, and by the beginning of the First World War, nearly 97% of the British capital investment in India was made in these sectors.

The British rulers put the blame for India‘s growing poverty on
  • a)
    Size and growth of India‘s population.
  • b)
    Out-dated social beliefs.
  • c)
    Primitive methods of production.
  • d)
    Poor opportunities for capital investment.
Correct answer is option 'A'. Can you explain this answer?

Arshiya Mehta answered
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.

Consider the following statements.
1. The Indian moneylender provided loans to hard-pressed agriculturists and thus facilitated the state collection of revenue
2. The Indian trader carried imported British products to the remotest corners and helped in the movement of Indian agricultural products for exports
3. The indigenous bankers helped both in the process of distribution and collection
Which of these statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Nilesh Patel answered
  • Indian traders, moneylenders and bankers had amassed some wealth as junior partners of English merchant capitalists in India. Their role fitted in the British scheme of colonial exploitation.
  • The Indian moneylender provided loans to hard-pressed agriculturists and thus facilitated the state collection of revenue.
  • The Indian trader carried imported British products to the remotest corners and helped in Indian agricultural products for exports. The indigenous bankers helped both in the process of distribution and collection.

Who of the following constituted the main body of the middle class in Bengal in British India?
  • a)
    Industrialists
  • b)
    Businessmen
  • c)
    Money-lenders
  • d)
    Zamindars
Correct answer is option 'D'. Can you explain this answer?

Aruna Singh answered
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.

After 1833, the single biggest source of drain of Indian wealth to Britain was
  • a)
    British capital investment in India
  • b)
    Import of mill-made textiles and woollens
  • c)
    Export of opium and indigo
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?

Prashanth Iyer answered
Explanation:

Source of Drain of Indian Wealth:

After 1833, the single biggest source of drain of Indian wealth to Britain was British capital investment in India.

Reasons:

1. Transfer of Capital: The British invested capital in India, which was then transferred back to Britain in the form of dividends, profits, and salaries.

2. Interest Payments: India had to pay interest on the capital borrowed from Britain. This reduced the amount of money available for investment in India.

3. Unequal Trade: India was forced to import goods from Britain, while its own goods were not given free access to the British market.

4. Tariff Policy: The British imposed heavy tariffs on Indian goods, making them uncompetitive in the British market.

5. Deindustrialization: The British policies led to the deindustrialization of India. Indian industries were destroyed and replaced by British industries.

6. Land Revenue System: The British introduced a land revenue system that was exploitative in nature. The peasants were forced to pay high taxes, which reduced their income and savings.

Conclusion:

Thus, British capital investment in India was the single biggest source of drain of Indian wealth to Britain after 1833. This led to the impoverishment of India and the growth of British wealth.

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