Comprehension
India had an independent economy before the advent of the British rule. Though agriculture was the main source of livelihood for most people, yet, the country’s economy was characterised by various kinds of manufacturing activities. India was particularly well known for its handicraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. These products enjoyed a worldwide market based on the reputation of the fine quality of material used and the high standards of craftsmanship seen in all imports from India. The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country than with the development of the Indian economy. Such policies brought about a fundamental change in the structure of the Indian economy — transforming the country into a supplier of raw materials and consumer of finished industrial products from Britain. Obviously, the colonial government never made any sincere attempt to estimate India’s national and per capita income. Some individual attempts which were made to measure such incomes yielded conflicting and inconsistent results. 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 were 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.
Question: 1

Before the British rule, India was well known for which manufacturing industries’ products?

Updated On: May 13, 2025
  • Cotton and Silk or Khadi textiles
  • Cotton and Engineering products
  • Cotton and Silk textiles, metal and precious stones
  • Engineering goods and precious metals
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The Correct Option is C

Approach Solution - 1

Before the British rule, India was renowned for its manufacturing sector, specifically in the production of cotton and silk textiles, as well as metal and precious stone works. These industries were part of the country's handicraft sector and enjoyed significant global market acclaim due to their superior quality and craftsmanship. 

OptionExplanation
Cotton and Silk or Khadi textilesWhile cotton and silk were prominent, khadi is not a historical export of importance before British rule.
Cotton and Engineering productsEngineering products were not a major export focus historically.
Cotton and Silk textiles, metal and precious stonesThis option accurately reflects the well-known industries of pre-colonial India.
Engineering goods and precious metalsPrecious metals were significant, but engineering goods were not a major pre-British industry.

Thus, the correct answer is: Cotton and Silk textiles, metal and precious stones.

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Approach Solution -2

India has long been renowned for its rich tradition of handicraft industries, which have played a pivotal role in the country’s cultural and economic history. Among the most notable handicrafts are cotton and silk textiles, which have been woven into intricate patterns and designs for centuries, making Indian textiles highly prized both domestically and internationally.

The country has also been a leader in the production of metal works, including fine brass, bronze, and copper items, and precious stone works, such as jewelry and intricate carvings made from gemstones like diamonds, emeralds, and sapphires. These crafts have a long-standing heritage, with regional specialties reflecting India’s diverse culture and history.

These industries not only showcase the skill and artistry of Indian artisans but also contribute significantly to the economy by providing livelihoods to millions of people, especially in rural areas. The craftsmanship involved in India’s textiles, metalworks, and gemstone art continues to be celebrated globally for its intricate beauty and quality.
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Question: 2

What kind of interests was the colonial government concerned with in the economic policy for Indian industries?

Updated On: May 13, 2025
  • To promote the handicraft industries of India
  • Promote and protect small scale industries of India
  • Protect and promote the economic interests of Indian industry along with their home country
  • Provide protection and promotion of the economic interests of their home country
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The Correct Option is D

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The colonial government in India was primarily focused on safeguarding and advancing the economic interests of their own country rather than fostering the economic development of Indian industries. Despite India’s rich history of self-sustaining economies supported by diverse manufacturing activities and globally acclaimed handicraft industries, the policies implemented by the British rulers altered the Indian economic landscape significantly. The British prioritized their interests by transforming India into a supplier of raw materials for Britain’s industries and a captive market for its finished goods. The economic strategies devised by the colonial administration were thus rooted in extracting and redirecting India’s resources to benefit the British economy. 

Options AnalyzedConclusion
To promote the handicraft industries of IndiaContrary to aims; handicrafts declined under colonial influence.
Promote and protect small scale industries of IndiaNo evidence of significant protection; focus was on British economic interest.
Protect and promote the economic interests of Indian industry along with their home countryNo balanced protection; priority was for the home country (Britain).
Provide protection and promotion of the economic interests of their home countryCorrect; colonial policies primarily benefited Britain's economy.

Therefore, the correct choice is: Provide protection and promotion of the economic interests of their home country. This option reflects the true nature of the colonial economic policies that aimed at serving the British economic agenda at the expense of India’s industrial potential.

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Approach Solution -2

The policies implemented by the colonial government in India were primarily designed to serve the economic interests of Britain, rather than the welfare or development of India. Under British rule, India was largely viewed as a resource-rich colony to supply raw materials and serve as a market for British manufactured goods.

Key aspects of colonial economic policies included the extraction of valuable resources such as raw cotton, spices, and minerals, which were exported to Britain. In return, India became a market for British goods, stifling the growth of local industries. The colonial administration also imposed taxes that burdened Indian farmers and artisans, making it difficult for them to thrive.

Furthermore, Britain’s economic policies led to the deindustrialization of India, undermining its traditional handicrafts and manufacturing sectors. The focus was on maximizing profit for Britain, often at the expense of India’s economic development, infrastructure, and social well-being.

These exploitative policies contributed to long-term economic challenges for India, and their effects are still visible in various aspects of the country’s development today.
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Question: 3

Choose the economists who estimated India’s National Income and Per Capita Income:

Updated On: May 13, 2025
  • Dadabhai Naoroji, William Digby, Bernier, V.K.R.V. Rao and R.C. Desai
  • Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C. Desai
  • Dadabhai Naoroji, Jagdish Bhagwati, V.K.R.V. Rao and R.C. Desai
  • Dadabhai Naoroji, Findlay Shrirras and V.K.R.V. Rao
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The Correct Option is B

Approach Solution - 1

The economists who played significant roles in estimating India's National Income and Per Capita Income include:
  • Dadabhai Naoroji
  • William Digby
  • Findlay Shirras
  • V.K.R.V. Rao
  • R.C. Desai
During the period of British colonial rule, India's economy was heavily transformed into one that served the needs of the British market, focusing on raw material production and consumption of British industrial goods. The colonial government did not prioritise a formal estimation of India’s national income. Rather, this task was attempted by individual economists like the ones listed above. Notably, V.K.R.V. Rao's estimates during the colonial era were considered significant among these independent efforts. Despite partial and inconsistent early estimates, it was generally observed that India experienced low growth rates in aggregate real output and per capita output during the early twentieth century.
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Approach Solution -2

The passage highlights the contributions of several prominent economists and scholars who played a crucial role in estimating India’s national income during the early stages of economic analysis in the country. These key figures include Dadabhai Naoroji, Charles E. Digby, Shirras, V.K.R.V. Rao, and Desai.

Dadabhai Naoroji, known as the "Grand Old Man of India," was one of the first to attempt an estimation of India’s national income. His analysis, presented in his book "Poverty and Un-British Rule in India," highlighted the drain of wealth from India under British rule and laid the foundation for later studies on India’s economic conditions.

Charles E. Digby and Shirras also contributed to the early efforts to quantify the Indian economy, focusing on various aspects of agricultural and industrial production. Their work was instrumental in understanding the economic structure of colonial India.

V.K.R.V. Rao, a renowned economist, advanced the study of national income in post-independence India and played a significant role in establishing economic planning in the country. He emphasized the importance of statistical data for policy-making and contributed to the development of India's national income estimates in the mid-20th century.

Desai further refined these estimates and worked on expanding the understanding of India’s economic conditions. Together, these scholars laid the groundwork for future national income accounts in India, helping to shape economic policy and research in the country.
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Question: 4

What was the country’s growth of aggregate real output during the first half of the 20th century?

Updated On: May 13, 2025
  • The country’s growth of aggregate real output was less than two percent coupled with a meagre one percent growth in per capita output per year.
  • The country’s growth of aggregate real output was less than two percent coupled with a meagre one and a half percent growthin per capitaoutput per year.
  • The country’s growth of aggregate real output was less than two and a half percent coupled with a meagre halfpercent growth in per capita output per year.
  • The country’s growth of aggregate real output was less than two percent coupled with a meagre half percent growth in per capita output per year.
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The Correct Option is D

Approach Solution - 1

The analysis of India's economic growth during the first half of the 20th century reflects the impact of colonial policies on its development metrics. The colonial government primarily focused on the economic benefits of Britain, relegating India's economic prosperity to a secondary concern. As such, the development of India’s infrastructure and industrial base was not prioritized, directly affecting its growth figures. Several economists attempted to assess India's national income and economic growth during this period, but the estimations varied due to inconsistent methodologies and limited data. Among these, V.K.R.V. Rao’s estimates are considered significant, despite the challenges in measuring accurate economic indicators of the time. Ultimately, studies concluded that:

  • The growth of aggregate real output was less than two percent annually. 
  • There was a meagre growth in per capita output of only half a percent per year.

This analysis underscores the sluggish economic progress due to colonial policies that hindered India's potential for significant economic growth, focusing on enriching the colonial rulers rather than investing in India's industrial and infrastructural development.

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Approach Solution -2

The passage highlights that aggregate real output growth in the country was less than two percent, indicating a relatively low level of economic expansion. This figure reflects the overall growth in the production of goods and services within the economy, which, despite being positive, was insufficient to drive significant improvements in living standards.

More concerning is the half percent growth in per capita output, which suggests that the average individual's share of economic output grew at a very slow pace. This low per capita growth implies that, despite some overall economic growth, the benefits of this growth were not being distributed effectively across the population. It indicates a stagnation in the improvement of living standards for the average citizen, pointing to challenges in achieving inclusive economic development.
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Question: 5

According to the passage, which of the following statement was true about Indian industries’ products ?

Updated On: May 13, 2025
  • Indian products were of inferior quality and cheap in the worldwide market
  • Indian products were promoted by the colonial government and competed with other countries’ markets also
  • Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship.
  • Indian products’ raw material for primary goods was imported from the other countries and it helped to increase export.
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The Correct Option is C

Approach Solution - 1

Based on the passage, the core inquiry centered on identifying the true statement concerning Indian industries' products. The passage highlights the prevalent reputation of Indian industries before British rule, particularly emphasizing the famed quality and craftsmanship seen in Indian products. The passage states that Indian handicraft industries, especially in textiles and metal and precious stones, enjoyed a worldwide market and were well-rated for their excellent material and skilled craftsmanship.

Option analysis:

  • Option 1: "Indian products were of inferior quality and cheap in the worldwide market" is incorrect as the passage explicitly mentions the high quality and fine craftsmanship of Indian products.
  • Option 2: "Indian products were promoted by the colonial government and competed with other countries’ markets also" is inaccurate; the passage indicates that colonial policies aimed at benefiting British economic interests rather than promoting Indian products.
  • Option 3: "Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship" aligns perfectly with the passage's description of the excellence and global reputation of Indian products prior to British intervention.
  • Option 4: "Indian products’ raw material for primary goods was imported from other countries and it helped to increase export" is also irrelevant and incorrect based on the passage. It specifies that India relied on its resources and craftsmanship.

Conclusively, the correct answer is: "Indian products enjoyed a worldwide market based on quality of material used and the high standard of craftsmanship." This aligns with the passage, reflecting India's strong market presence worldwide due to the intrinsic quality and craftsmanship of its products.

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Approach Solution -2

The passage emphasizes that Indian products, particularly textiles and metalworks, were globally renowned for their quality and craftsmanship. For centuries, Indian artisans and craftsmen have been celebrated for producing finely crafted goods, often using traditional techniques passed down through generations.

Textiles from India, especially cotton and silk fabrics, were highly valued around the world for their intricate designs and exceptional quality. Indian textile products, such as muslin, calico, and kalamkari fabrics, were traded extensively across Asia, Europe, and the Middle East, establishing India as a global leader in the textile industry.

Similarly, metalworks and jewelry, particularly items made from gold, silver, and precious stones, were renowned for their fine detailing and artistry. Indian metalworkers and jewelers were recognized for their skill in creating both practical items and intricate decorative pieces, which were sought after by rulers and traders worldwide.

This legacy of quality and craftsmanship played a significant role in India’s historical reputation as a center for global trade, contributing to the cultural and economic exchange between India and other parts of the world.
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