Passage Based Questions: Indian Economy On The Eve Of Independence | Economics Class 12 - Commerce PDF Download

Passage - 1

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The structure of India’s presentday economy is not just of current making; it has its roots steeped in history, particularly in the period when India was under British rule which lasted for almost two centuries before India finally won its independence on 15 August 1947. The sole purpose of the British colonial rule in India was to reduce the country to being a raw material supplier for Great Britain’s own rapidly expanding modern industrial base. An understanding of the exploitative nature of this relationship is essential for any assessment of the kind and level of development which the Indian economy has been able to attain over the last seven and half decades. 

Q1: What was the primary objective of British colonial rule in India during the period of British rule?
Ans:

• The primary objective was to reduce India to a supplier of raw materials.
• British aimed to support Great Britain's own rapidly expanding modern industrial base.

Q2: What impact did British colonial rule have on India's economic development?
Ans:

• India's economy was exploited, serving British industrial interests.
• India was reduced to a supplier of raw materials, hindering its own industrial growth.

Q3: Why is understanding the exploitative nature of British colonial rule essential for assessing India's economic development?
Ans:

• Understanding exploitation provides context for evaluating India's economic progress.
• It helps analyze the challenges and limitations faced in achieving development goals.

Passage - 2

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Agricultural productivity became low though, in absolute terms, the sector experienced some growth due to the expansion of the aggregate area under cultivation. This stagnation in the agricultural sector was caused mainly because of the various systems of land settlement that were introduced by the colonial government. Particularly, under the zamindari system which was implemented in the then Bengal Presidency comprising parts of India’s present-day eastern states, the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators.

Q1: Why did agricultural productivity in India remain low despite an expansion in the cultivated land area during the colonial period?
Ans:

• Agricultural productivity was hampered due to the introduction of various land settlement systems by the colonial government.
• The zamindari system, implemented in Bengal Presidency, redirected agricultural profits to zamindars, not cultivators, leading to stagnation.

Q2: Which specific land settlement system contributed significantly to the decline in agricultural sector growth during the colonial era?
Ans:

• The zamindari system, implemented in the Bengal Presidency, played a major role.
• Under this system, agricultural profits were claimed by zamindars, not the actual cultivators, causing stagnation in the sector.

Q3: What was the consequence of the profit distribution under the zamindari system on the agricultural sector in colonial India?
Ans:

• Agricultural profits were siphoned off to zamindars, hindering investment in the sector.
• This led to a lack of incentives for cultivators, resulting in low agricultural productivity despite an increase in cultivated land area.

Passage - 3

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To a very great extent, the terms of the revenue settlement were also responsible for the zamindars adopting such an attitude; dates for depositing specified sums of revenue were fixed, failing which the zamindars were to lose their rights. Besides this, low levels of technology, lack of irrigation facilities and negligible use of fertilisers, all added up to aggravate the plight of the farmers and contributed to the dismal level of agricultural productivity. 

Q1: What factors contributed to the negative attitude of zamindars in the revenue settlement system during colonial India?
Ans:

• Fixed deadlines for revenue deposits were set, forcing zamindars to adopt a profit-centric approach.
• Failure to meet specified revenue sums led to the loss of their rights, encouraging zamindars' exploitation of farmers.

Q2: Apart from revenue settlement issues, what other factors worsened the condition of farmers and reduced agricultural productivity during colonial rule?
Ans:

• Low levels of technology adoption hindered agricultural efficiency.
• Lack of irrigation facilities and minimal use of fertilizers further contributed to the challenges faced by farmers.

Q3: How did the lack of irrigation facilities and technological advancements affect agricultural productivity in colonial India?
Ans:

• Absence of proper irrigation reduced the agricultural output due to water scarcity.
• Limited use of modern technology hampered productivity, leading to dismal results in the agricultural sector.

Passage - 4

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The primary motive of the colonial government behind this policy of systematically deindustrialising India was two-fold. The intention was, first, to reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain and, second, to turn India into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country — Britain. In the unfolding economic scenario, the decline of the indigenous handicraft industries created not only massive unemployment in India but also a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods.

Q1: What were the dual objectives of the colonial government in deindustrializing India during the British rule?
Ans:

• The first objective was to transform India into a supplier of raw materials for British industries.
• The second objective was to create a market for finished British products in India, ensuring continuous expansion of British industries.

Q2: What were the consequences of the decline of indigenous handicraft industries in India under British colonial rule?
Ans:

• Massive unemployment arose due to the decline of indigenous industries.
• The absence of locally made goods led to new demand in the Indian consumer market.

Q3: How did the deindustrialization policy impact India's economy and consumer market during the colonial period?
Ans:

• India became a source of raw materials, limiting its economic growth.
• The absence of local products increased demand for British goods in the Indian market, benefiting the British industries.

Passage - 5

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The Tata Iron and Steel Company (TISCO) was incorporated in 1907. A few other industries in the fields of sugar, cement, paper etc. came up after the Second World War. However, there was hardly any capital goods industry to help promote further industrialisation in India. Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption.

Q1: When was the Tata Iron and Steel Company (TISCO) incorporated in India?
Ans:

• TISCO was incorporated in the year 1907.

Q2: What types of industries emerged in India after the Second World War?
Ans:

• Industries in fields such as sugar, cement, and paper were established in India after the Second World War.

Q3: What was the significant gap in India's industrial landscape despite the establishment of certain industries?
Ans:

• There was a lack of capital goods industry in India, specifically industries capable of producing machine tools. These tools are essential for manufacturing items for current consumption and are vital for the further industrialization of a nation.

Passage - 6

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Consequently, India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute etc. and an importer of finished consumer goods like cotton, silk and woollen clothes and capital goods like light machinery produced in the factories of Britain. For all practical purposes, Britain maintained a monopoly control over India’s exports and imports. As a result, more than half of India’s foreign trade was restricted to Britain while the rest was allowed with a few other countries like China, Ceylon (Sri Lanka) and Persia (Iran).

Q1: What were some of the primary products that India exported during the colonial period?
Ans:

• India exported raw silk, cotton, wool, sugar, indigo, and jute, among other primary products.

Q2: What were the main categories of goods that India imported during this period?
Ans:

• India imported finished consumer goods like cotton, silk, and woolen clothes, as well as capital goods such as light machinery produced in British factories.

Q3: Which country had significant control over India's exports and imports during the colonial era?
Ans:

• Britain maintained a monopoly control over India’s exports and imports, controlling more than half of India's foreign trade. Trade with a few other countries like China, Ceylon (Sri Lanka), and Persia (Iran) was also permitted, but on a limited scale.

Passage - 7

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The various social development indicators were also not quite encouraging. The overall literacy level was less than 16 per cent. Out of this, the female literacy level was at a negligible low of about seven per cent. Public health facilities were either unavailable to large chunks of population or, when available, were highly inadequate. Consequently, water and air-borne diseases were rampant and took a huge toll on life. No wonder, the overall mortality rate was very high and in that, particularly, the infant mortality rate was quite alarming—about 218 per thousand in contrast to the present infant mortality rate of 33 per thousand. Life expectancy was also very low—32 years in contrast to the present 69 years.

Q1: What was the overall literacy level in India during the colonial period, and how did female literacy compare to the overall rate?
Ans:

• The overall literacy level in India was less than 16 percent. Female literacy was particularly low, at about seven percent.

Q2: What were the challenges in public health facilities during the colonial era, and what were the consequences of inadequate healthcare?
Ans:

• Public health facilities were either unavailable to a large portion of the population or highly inadequate.
• Inadequate healthcare led to rampant water and air-borne diseases, resulting in a high overall mortality rate and a particularly alarming infant mortality rate of about 218 per thousand.

Q3: How did life expectancy during the colonial period compare to the present life expectancy in India?
Ans:

• Life expectancy was very low at 32 years during the colonial period, in contrast to the present life expectancy of 69 years.

Passage - 8

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The various social development indicators were also not quite encouraging. The overall literacy level was less than 16 per cent. Out of this, the female literacy level was at a negligible low of about seven per cent. Public health facilities were either unavailable to large chunks of population or, when available, were highly inadequate. Consequently, water and air-borne diseases were rampant and took a huge toll on life. No wonder, the overall mortality rate was very high and in that, particularly, the infant mortality rate was quite alarming—about 218 per thousand in contrast to the present infant mortality rate of 33 per thousand. Life expectancy was also very low—32 years in contrast to the present 69 years.

Q1: What was the overall literacy rate in colonial India, and how did female literacy compare to the overall rate?
Ans:

• The overall literacy rate in colonial India was less than 16 percent. Female literacy was significantly lower, at about seven percent.

Q2: What were the challenges regarding public health facilities during the colonial period, and what were the consequences of inadequate healthcare?
Ans:

• Public health facilities were either unavailable to large segments of the population or highly inadequate.
• Inadequate healthcare led to widespread water and air-borne diseases, resulting in a high overall mortality rate. The infant mortality rate was particularly alarming at about 218 per thousand.

Q3: How did life expectancy and infant mortality rates in colonial India compare to the present-day statistics?
Ans:

• Life expectancy was very low at 32 years during colonial times, in contrast to the present life expectancy of 69 years.
• The infant mortality rate was about 218 per thousand in the colonial era, which has significantly decreased to 33 per thousand in the present day.

Passage - 9

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Another striking aspect was the growing regional variation. Parts of the then Madras Presidency (comprising areas of the present-day states of Tamil Nadu, Andhra Pradesh, Kerala and Karnataka), Bombay and Bengal witnessed a decline in the dependence of the workforce on the agricultural sector with a commensurate increase in the manufacturing and the services sectors. However, there had been an increase in the share of workforce in agriculture during the same time in states such as Orissa, Rajasthan and Punjab.

Q1: Which regions in colonial India experienced a decline in workforce dependence on agriculture and a rise in manufacturing and services sectors?
Ans:

• Parts of the Madras Presidency (Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka), Bombay, and Bengal witnessed a decline in agricultural workforce dependency, coupled with an increase in manufacturing and services sectors.

Q2: In contrast, which states in colonial India saw an increase in the workforce engaged in agriculture during the same period?
Ans:

• States such as Orissa, Rajasthan, and Punjab experienced an increase in the share of workforce in agriculture during the colonial era.

Q3: What was the significant regional variation in workforce trends during colonial times in India?
Ans:

• Colonial India displayed a striking regional variation where some regions like Madras Presidency, Bombay, and Bengal saw a shift away from agriculture towards manufacturing and services sectors.
• In contrast, states like Orissa, Rajasthan, and Punjab witnessed an increase in the agricultural workforce.

Passage - 10

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The British introduced the railways in India in 1850 and it is considered as one of their most important contributions. The railways affected the structure of the Indian economy in two important ways. On the one hand it enabled people to undertake long distance travel and thereby break geographical and cultural barriers while, on the other hand, it fostered commercialisation of Indian agriculture which adversely affected the self-sufficiency of the village economies in India. The volume of India’s exports undoubtedly expanded but its benefits rarely accrued to the Indian people.

Q1: When did the British introduce railways in India, and what significance did it hold in their contributions to the country?
Ans:

• The British introduced railways in India in 1850, considering it one of their most significant contributions to the country's infrastructure.

Q2: How did the introduction of railways impact the Indian economy, particularly in terms of travel and agriculture?
Ans:

• Railways enabled long-distance travel, breaking geographical and cultural barriers in India.
• The commercialization of Indian agriculture was fostered, adversely affecting the self-sufficiency of village economies.

Q3: Despite the expansion of India's exports due to railways, who primarily benefited from this growth?
Ans:

• The volume of India’s exports expanded, but the benefits rarely accrued to the Indian people; instead, they were often exploited by colonial interests.

Passage - 11

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Along with the development of roads and railways, the colonial dispensation also took measures for developing the inland trade and sea lanes. However, these measures were far from satisfactory. The inland waterways, at times, also proved uneconomical as in the case of the Coast Canal on the Orissa coast. Though the canal was built at a huge cost to the government exchequer, yet, it failed to compete with the railways, which soon traversed the region running parallel to the canal, and had to be ultimately abandoned.

Q1: What measures did the colonial government take for the development of transportation in India during the colonial period?
Ans:

• The colonial government developed roads, railways, and inland waterways to improve transportation in India.

Q2: What issues did the colonial administration face in developing inland waterways, and can you provide an example?
Ans:

• Inland waterways were sometimes uneconomical, as seen in the case of the Coast Canal on the Orissa coast.
• Despite the substantial cost incurred in building the canal, it couldn't compete with the railways, which ran parallel to it. Consequently, the canal had to be ultimately abandoned.

Q3: How did the failure of certain transportation projects impact the colonial government's efforts to improve trade and connectivity in India?
Ans:

• Failures, like the abandonment of the Coast Canal due to the competition from railways, showcased the challenges faced by the colonial government in creating effective and economical transportation networks, impacting their goals of enhancing trade and connectivity in India.