Case Study CH-1 Ied

Download as pdf or txt
Download as pdf or txt
You are on page 1of 70

ARIHANT COACHING CENTRE (2020-21)

SACHIN JAIN:-9810250321, 7011147478


CH-1 CASE STUDY
INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

Question1. . The Colonial government never made any sincere attempt to


estimate India’s national and per capita income. Some individual attempts
to estimate India’s national and per capita income. Some individual
attempts which were made to measure such income 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 was considered very
significant. However, most studies did find that the country’s growth
aggregate real output during the first half of the twentieth century was
less than two percent coupled with a meager half percent growth in per
capita output per year.
Answer the following on the basis of above:
Q: 1Define Colonialism and its nature with reference to Indian Economy.
Q: 2 Did Colonial Government made any Sincere Attempts to Estimate
India’s National Income and Per Capita Income. Justify your answer.
Q:3 Define Stagnant economy. Why Indian economy is known as stagnant
economy during British rule.

A:1 Colonialism represents the state of foreign domination. It indicates


that the country is a colony of a ruling foreign country and foreign country
controls and regulates this country. And it is quite obvious, that the
nature of colonial rule was of exploitative in nature in many respects.

A:2 NO. As they had no intentions to make any significant contribution


towards the development of the Indian Economy.

A:3 Stagnant economy is an economy which is characterized by a


prolonged period of slow economic growth.

Question 2. Muslin is a type of cotton textile which had its origin in


Bengal, particularly, places in and around Dhaka(now the capital city of
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 1


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Bangladesh). Daccai Muslin had gained world wide fame as an exquisite
type of cotton textile.
The finest variety of muslin was called malmal. Foreign travelers also used
to refer to it as malmalshahi or malmalkhas meaning that it was worn by
or fit for, the royalty.
1. What was Muslin refer to?
Answer: Muslin is a type of cotton textile which had its origin in Bengal,
particularly, places in and around Dhaka.

2.For whom was that special kind of Muslin made for?


Answer It was made and meant for Royal people

3.What kind of growth does Industrial sector had and why?


Answer: Lopsided Industrial Structure The industrial growth was lopsided,
in the sense that consumer goods industry was not adequately supported
by the capital goods industry

Question 3. Before colonial period, India was exporting manufactured


goods which enjoyed worldwide demand. Under the colonial rule, India was
reduced to a supplier of raw materials like jute, cotton, indigo, wool, sugar
etc. and importer of finished consumer goods like silk and woollen clothes
and light machinery manufactured in the factories of Britain. Additionally,
the opening of Suez Canal intensified this control of Britishers over Indian
foreign trade. The remaining volume of foreign trade was allowed with a
handful of countries namely China, Ceylon (Sri Lanka) and Persia (Iran).
Interestingly, even this trade was heavily monitored by the colonials. As a
matter of fact, there was a large generation of export surplus under the
British Raj. India was a large exporter in the colonial period. However, it
did not affect the country’s economy. Commodities like food grains,
clothes, kerosene hit the country hard with its scarcity. Ironically, this
export surplus never made its way to India. It was used to make payments
for an office set up in Britain, war expenses of the British and import of

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 2


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
invisible items. Such brutalities eventually led to the dawn of a rising foreign
trade aspect of India
1. How did the opening of suez canal help the Britishers?
2. The export surplus was used for the welfare of Indian Industry. (True/
False)
3. Name the countries with which India had Foreign Trade.
4. What is the reason for shortage of food grains?
ANSWERS:
1. Cost of transportation and access to Indian market was made easier.
2. False
3. Britain, China, Ceylon, Persia.
4. Commercialization of Crops

Question 4.
The French traveller, Bernier, described seventeenth
century Bengal in the following way: “The
knowledge I have acquired of Bengal in two visits
inclines me to believe that it is richer than Egypt. It
exports, in abundance, cottons and silks, rice, sugar
and butter. It produces amply — for its own
consumption — wheat, vegetables, grains, fowls,
ducks and geese. It has immense herds of pigs and
flocks of sheep and goats. Fish of every kind it has in
profusion. From rajmahal to the sea is an endless
number of canals, cut in bygone ages from the
Ganges by immense labour for navigation and
irrigation.”
On the basis of this passage answer questions (1-4)
1. Name the items exported by India.

Ans:
cottons and silks, rice, sugar and butter
2. Name the items produced for self consumption.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 3


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Ans:
wheat, vegetables, grains, fowls, ducks and geese
3. Highlight the form of developed infrastructure
mentioned in the paragraph.

Ans:
Canals for navigation and irrigation
4. Name the livestocks maintained by Indians in the
given era.

Ans:
Pigs, sheep and goats

Question 5. Read the following Case study ,carefully and answer the
question number 6-9 on the base of the same.
Before 1947 ,?More than 90% of the national income relied on the Indian
agriculture sector. A significant portion of the country’s population
resided in rural areas where agriculture was the primary source of
livelihood.
The pre -colonised India produced primary two crops ,wheat and rice.
Even if it was only two types of crops, country's agriculture sector was
sustainable and self sufficient. The British invasion resulted in total
commercialization of India's agriculture industry. On the eve of
independence the once most prominent sector of this country was known
to be suffering from stagnation and constant degradation.
Que 1. What is meant by commercialization of agriculture?
a) None b) Production of crop for sale in the market
c) Production of crop for self consumption d) Both
Ans. B

Que 2. Reason for low productivity in agriculture sector


a) HYV seeds b) Low level of technology
c) Improved irrigation system d) All of these
Ans B.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 4


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY

Que 3.Which of the following statements are correct with reference to the
Zamindari system.
Ans: The profit accruing out of the agriculture sector was proposed to go
to the cultivators.

4. The main interest of the zamindar’s was only to Collect rent regardless
of the economic condition of the cultivators.
a) Both are correct b) Both are incorrect
c) (i)correct (ii) incorrect d) (ii)correct (i) incorrect
Ans.D

5. What was the main reason for the stagnation in the agriculture sector
under the British rule?
Ans. Land settlement system introduced by the British rule

Question 6. Feudalism and sub-feudalism were prevalent. In some cases


there were as many as 50 intermediaries between the peasants and the
Government. Around 4/5th of the produce was taken from the peasants
as taxes, which in turn led to impoverishment of farmers. Focus was not
on new ways and bringing the technology in agriculture. Many farmers
lost their lives to famine. Britishers brought about commercialisation of
agriculture
It was hard for peasant communities, at large, to arrange food for
themselves throughout the year, though they were the real producers of
the food. Measures to improve agriculture were not momentary that
could be all done, all of sudden, in 1947, rather these measures were
brought about throughout the journey of Independent India.

Q1. What was the main reason for stagnation in agriculture sector during
British rule?
Q2. Name some cash crops grown during British rule.
Q3. What was the effect of growing cash crops on the soil?
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 5


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q4. What do you mean by commercialisation of agriculture?
Q5. Give two reasons for low level of agricultural productivity during the
colonial rule.
Answers:
1. Land settlement system
2. Opium, tea, coffee, sugar, jute and indigo
3. Spoiled the fertility of the land and no other crop could be grown on it.
4.commercialisation of agriculture means production of crops for sale in
the market rather than for self-consumption.
4. Poor and outdated technology, lack of irrigation facilities.

Question 7. The 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. The opening of the Suez Canal further
intensified British control over India's foreign trade.
Q 1. Which restrictive policies pursued by the Colonial government
adversely affected the structure, composition and volume of India's
foreign trade?

Q2. The opening of-------- further intensified British control over India's
foreign trade.
Q3. More than --------- of India's foreign trade was restricted to Britain.
Q4. Name the area of operation of the
public sector under the British Colonial Rule.
Q5. Define capital goods industry.
Answers:
1. The restrictive policies of commodity production, trade and tariff
pursued by the Colonial government adversely affected the structure,
composition and volume of India's foreign trade.
2. Suez Canal.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 6


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
3. 50%
4. Railways, Power generation, communications, ports and some
other departmental undertakings.
5. Capital goods industry is that industry which can produce
machine tools which are, in turn, used for producing articles for
current consumption.

Question 8. The rule of the British in India is possibly the most


controversial and the most hotly debated aspect of the history of the
British Empire. Admirers of British rule point to the economic
developments, the legal and administrative system, and the fact that India
became the centre of world politics. Critics of British rule generally point
out that all of these benefits went to a tiny British ruling class and the
majority of Indians gained little. Admirers of British rule counter this by
saying that most Indians were poor and oppressed by their own leaders
before the British arrived, and that British rule was less harsh on ordinary
Indians than rule by Indian princes.
Perhaps the main reason why the arguments are so heated and so
complex is that India was very different from the other territories that
made up the empire. North America and Australia, for example, were
sparsely populated and their populations were less economically
developed than Britain. India, however, had a huge population and was
just as developed as Britain in the 1700s when the British arrived.
The British were able to take control of India mainly because India was
not united. The British signed treaties and made military and trading
alliances with many of the independent states that made up India. The
British were very effective at infiltrating these states and gradually taking
control of trade. They often left the local princes in charge of the various
parts of India. These local princes were effective at maintaining British
rule and gained much from being loyal to the British.
Q.1 Mention any one positive impact of British rule except the ones
mentioned in above case study.
Ans: Railways.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 7


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q.2 Huge population of India in 1700 proved to be a ___________
(liability/ asset) for the country.
Ans: Liability
Q.3 The British were very effective at infiltrating these states and
gradually taking control of trade. How according to you, British turned
trade in their favour?
Ans: By imposing high tariffs on Indian exports of finished goods. And low
or no tariff on British imported goods. They also controlled volume and
direction of Indian trade.
Q.4 ‘British rule was less harsh on ordinary Indians than rule by Indian
princes’. Do you agree with statement?
Ans: No. Because before the advent of the British almost all the Indian
states were self-sufficient. They were exploited by British.

Question 9 .Read the following and answer Questions on the basis of the
same:
During the second half of the nineteenth century, modern industry began
to take root in India but its progress remained very slow. Initially, this
development was confined to the setting up of cotton and jute textile
mills. The cotton textile mills, mainly dominated by Indians, were located
in the western parts of the country, namely, Maharashtra and Gujarat,
while the jute mills dominated by the foreigners were mainly
concentrated in Bengal. Subsequently, the iron and steel industries began
coming up in the beginning of the twentieth century. 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.
Q1. When did the modern industry begin to take root in India?
Ans. During the second half of the nineteenth century.
Q2, which country had command over cotton mills?
Ans. India
Q3. Who is the founder of TISCO?
Ans. Jamshetji Tata
Q4. There was systematic _______________ by Britishers.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 8


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Ans. De-industrialisation

Question 10. State of Agriculture Sector Agriculture was the main source
of livelihood for most of the people of India, and about 85% of the
country’s population lived mostly in villages and derived livelihood
directly or indirectly from agriculture. Inspire of such a large segment of
the population being dependent of agriculture, either directly or
indirectly, this sector was facing stagnation and constant deterioration, as
is brought forward through the following points. Low Level of Productivity
Productivity, i.e. output per hectare of land was very low. This led to a low
level of output, inspire of a large area under cultivation. High degree of
Vulnerability Agriculture was vulnerable to climatic factors and mostly
affected by erratic rainfall. Poor rainfall generally led to a low level of
output and also to crop failures. No effort was made by British
Government to provide permanent source of irrigation facilities for the
farmers.
1. What was the main occupation of Indians on the eve of Independence?
Answer: Agriculture was the main source of livelihood for most of the
people of India, and about 85% of the country’s population lived mostly in
villages.
2. What was the main the source of irrigation for Indian farmers?
Answer: Farmers basically depended upon the rainfall for irrigating their
crops.
3. Explain the main reasons of stagnant conditions of agriculture.
Answer : (i) Land Revenue System
(ii) Commercialization of agriculture
(iii) Low level of productivity
(iv) Scarcity of Investment

Question 11. Read the given paragraph and answer following questions
Suez canal is an artificial waterway running from north to south across the
Isthmus of Suez in north eastern Egypt. It connects port said on the
Mediterranean sea with the Gulf of Suez ,an arm of the Red sea. The canal
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 9


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
provides a direct trade route for ships operating between European or
American ports and ports located in South Asia, East Africa. it is one of the
most important waterway in the world. Its opening in 1869 reduced the
cost of transportation and made access to the Indian market easier.
a) Highlight the basic objective behind opening Suez canal.
b) It is the highway between--------------and ----------countries,
c) What is the biggest advantage of opening Suez canal?
d) Name the country in which there was no need of sailing around after
Suez canal.
ANSWERS: A. British control over India’s foreign trade
B. India , Britain
C. Reduced cost of transportation, access to the Indian market.
D. Africa

Question 12. By the time India won its independence the impact of the
the two century long British colonial rule was already showing on all
aspects of the Indian economy. The agricultural sector was already
saddled with surplus labour an extremely low productivity. The industrial
sector was crying for or modernization diversification, capacity building
and increased public investment. Foreign trade was oriented to feed the
industrial revolution in Britain.
1. The main reason for stagnation in agriculture during British rule was :
a. Land settlement system b. De industrialization
c. Lack of technology d. Commercialization of agriculture
Ans. Land settlement system

2. Which industry received the major setback during the colonial rule?
a. Cement b. Handicraft c. Paper d. Iron in steel
Ans. handicraft

3. At the time of independence Indian industry was crying for


modernization due to
a. Lack of capital goods industries during British rule
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 10


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
b. Adverse effects of decline of handicraft industry
c. Limited role of public sector d. None of these
Ans. Limited role of public sector

5. Foreign trade was oriented to feed the industrial revolution in Britain as


India became an___________of primary products and an ______of
finished consumer goods. (Importer/exporter)

Question 13. The Indian economy that we inherited from our colonial
rulers need efforts in all sectors. Economic development was almost
absent, agricultural sector was slowly forced into production of
commercial crops and was using primitive methods. Indian industries
were neglected. Infrastructure was selectively developed and was
inadequate to meet the growing needs while the population suffered
from lack of health and education.
Q1. Use of primitive method in agriculture sector refers to use of
_________ (traditional/ modern) methods.
Q2. State any area of infrastructure that was developed to benefit the
britishers.

Q3. The poor state of health among the population of India can be
understood through:
a) low death rate b) low birth rate c) Low life expectancy
d) High nutritional status
Answers:
1. Traditional
2. Railways. Postal and telegraph, roadways
3. Low life expectancy

Question 14. Agriculture and the industry is inextricably interrelated. The


interrelationship and interdependence run both ways. Agriculture
depends on the industry, for the major part of the demand for its
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 11


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
products comes from the industrial sector. The industrial base of the
economy cannot expand without the sufficient development of the
agricultural sector. The 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.
The same consequences are faced (during the colonial period) in foreign
trade wherein the generation of the large export surplus came at a huge
cost to the country’s economy. The various social development indicators
were also not quite encouraging.
Que. 1 Which one of the following statements does not characterize the
condition of Indian Agricultural condition on the eve of independence?
(a) Agricultural sector was experiencing stagnation.
(b) The aggregate area under cultivation was contracting.
(c) Agricultural productivity became low in absolute terms.
(d) Cash crops were more produced.
Answer (b) Aggregate area under cultivation was contracting.

Que. 2 Read the following statements relating to the industrial sector


during British rule and state the correct sequence of these statements.
(i) Cheap imports of British manufactured goods increased in the country.
(ii) The growth rate of The industrial sector was very small.
(iii) India was reduced to be a mere exporter of raw material.
(iv) India faced a shortage of locally made goods.
Answer: (iii), (iv), (i), (ii)

Que. 3 Read the following statements relating to foreign trade during


British rule and state the correct sequence of these statements.
i) India was an exporter of products like raw silk, cotton, etc.
(ii) Britain maintained monopoly control over India's foreign trade.
(iii) India generated large export surplus
(iv) Exports did not result in any flow of wealth into the country.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 12


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Answer: (ii), (i), (iii), (iv),

Que. 4 During the British rule, the agricultural sector experienced


stagnation mainly due to the:
(i) Land settlement systems
(ii) Infrastructure
(iii) Foreign trade
(iv) Industries
Answer: (i) Land settlement systems

Question 15 . One of the most common debates I hear about India is


whether British colonialism has been good or bad for the country’s
economic prospects. Defenders of British rule often cite the construction
of the railroads, or the spread of the English language, but as time passes
the evidence mounts that India would have been much better off on its
own.
That’s of relevance for the shouting match, but it also bears on how
optimistic we should be about India today. If you view the colonial period
as a harmful aberration, you will tend to think India can catch up as it
leaves these distortions behind. Conversely, if you see British rule as a
plus, you may worry that India will eventually lose some of that inherited
dynamism. BY TYLER COWEN(ECONOMICS TIMES)
1.What were the few positive effects of British rule in India?
Answer: Britishers introduced new transport facilities (building of railway
tracks), development of ports, provision of post and telegraph services for
communication purpose, a base of a strong and efficient administrative
setup, Political and economic unification of the country and lastly the
evolution of banking and monetary system across the country.

2.Which crop did Britishers asked Indian farmers to grow for them?
Answer :Britishers forced Indian farmers to grow Indigo.

3.What was the purpose of Britishers to colonize India?


IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 13


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Answer :Britishers wanted to reduce the country to being a feeder
economy for Great Britain’s own rapidly expanding modern industrial
base.

4.Which was the shortest way to Britain, invented by Britishers?


Answer :Britishers introduced Suez canal to save the time of travel
between India and Britain.

5.What was the main motive of developing infrastructure in India?


ANSWER : The main motive was not to provide basic amenities to the
Indian people but for their colonial interest.

Question 16. Backward, stagnant and non-vibrant agriculture during the


British Raj sharply contrasted with the pre-British period agriculture. Prior
to the British Raj in India, rural India was described as a system of self-
contained village communities. These village communities included
farmers and the functionaries. The farmers were engaged in crop farming
or cattle farming while the functionaries would render essential services
like that of blacksmiths, goldsmiths, washermen and shoe-makers.
Prosperous Agriculture even without Mechanization (Pre-British Period) .
There were no intermediaries (like zamindars) between the state and the
farmers; the farmers would pay land revenue directly to the king.
Prosperity and stability were the key characteristics of life in rural India.
Thus, the French traveler, Bernier, described Bengal in 17th century as
"richer than Egypt" producing amply for self-consumption and exporting
in abundance.
Answer the following question-
i) During British rule Indian economy was-
a. backward b. stagnant c. non vibrant d. all of the above

ii) . ----------- described Bengal in 17th century as "richer than Egypt"


producing amply for self-consumption and exporting in abundance.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 14


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
iii) Before British rule Indian economy was backward. (true/false)Give
reason.

iv) Why did Britishers come to India?

ANSWER-
1. d
2. The French traveler, Bernier
3. False, Prior to the British Raj in India, rural India was described as a
system of self-contained village communities
4. For trade

Question 17. Agriculture was the main source of livelihood for most of the
people of India, and about 85% of the country’s population lived mostly in
villages and derived livelihood directly or indirectly from agriculture.
Inspite of such a large segment of the population being dependent of
agriculture, either directly or indirectly, this sector was facing stagnation
and constant deterioration, as is brought forward through the following
points.
Low Level of Productivity Productivity, i.e. output per hectare of land was
very low. This led to a low level of output, inspite of a large area under
cultivation.
High degree of Vulnerability Agriculture was vulnerable to climatic factors
and mostly affected by erratic rainfall. Poor rainfall generally led to a low
level of output and also to crop failures. No effort was made by British
Government to provide permanent source of irrigation facilities for the
farmers.
i) What was the main occupation of Indians on the eve of Independence?
ii) What was the main the source of irrigation for Indian farmers?
iii) Explain the main reasons of Stagnant conditions of agriculture.

ANSWERS

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 15


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
i. Agriculture was the main source of livelihood for most of the people of
India, and about 85% of the country’s population lived mostly in villages.
ii. Farmers basically depended upon the rainfall for irrigating their crops.
iii.The reasons for stagnation of agricultural sector were:
 Land Revenue System
 Lacking of resources
 Commercialization of Agriculture

Question 18. Read the following and answers the question from on the
basis of same
prior to independence India was ruled by britishers .They treated India as
their colony and never took any interest for the establishment of large
scale industries in India .So Indian economy remained to be backward
economy and stagnant economy .However in 1907 India succeed in
establishing and iron industry. Also prior to 1921 and post 1921 The Indian
population has shown a big change growth of population was never
consistent prior to 1921 but after 1921 it grew steadily.
Q. 1 Tisco the first iron and steel industry was incorporated in the
year_______.
Ans 1907

Q2 why was the year 1921 is Known as year of great divide?


Ans 1921 is known as year of great divide with regard to population
growth in India because prior to 1991 population growth in India was not
Consistent after 1921 it is growing steadily.

Question 19. The French Traveller, Bernier describes 17th century Bengal in
the following way; “ The knowledge I have acquired of Bengal in two visits
inclines me to believe that it is richer than Egypt. It exports, in abundance,
cotton and Silks, rice, sugar and butter. It produces Amply – for its own
consumption – wheat, vegetables, grains, fowls, Ducks and geese. It has
immense herds of pigs and flocks of sheep and goats. Fish of every kind it

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 16


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
has in profusion. From Raj Mahal to the sea is an endless number of
canals, cut in Bygone ages from the Ganges by immense labour for
navigation and irrigation.” The Bengal was also very famous for its cotton
textile. the production of Muslim.’Dhaccai muslin’ had gained worldwide
Fame as an active site type of cotton textile. The finest variety of Muslim
was called Malmal. Sometime, foreign Travellers also used to refer to it as
Malmalshahi or Malmalkhas implying that is was worn by or fit for the
royalty.
On the bases of the above report answer the following questions:
1. Which state of India is describing here by French traveller, Bernier?
Ans. Bengal.

2. What was the state of balance of payment of India during 17th century?
Ans. There was trade surplus.

3.From the following two columns column A and B choose the correct pair
of column
Column A Column B
1. Bengal exports Wheat, vegetables, fowl, etc.
2. Malmal Finest variety of muslin
3. Egypt Production of muslin
Ans. Malmal – finest variety of muslin.

4. Bengal was very famous for its _______ textile.


Ans. Cotton.

Question 20. We inherited from the British a backward economy with


stagnation and poverty as its principal characteristics .Agriculture was the
chief source of livelihood. But this sector suffered rampant exploitation of
the farmers. Exploitation was so deep- rooted that the owners of the soil
at one time were reduced to the status of tillers of the soil and the tillers
of the soil were ultimately reduced to the status of landless labourers.
Handicrafts which at one Time enjoyed worldwide fame were

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 17


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
systematically destroyed .Modern industry had begun to emerge but its
growth was notional and confined to restricted areas of production.
Imports and exports were controlled and regulated in a manner such that
they serve the colonial pursuits of the British government. The targeted
exploitation across all sectors of the economy was so deep rooted that
after Independence revival of the Indian economy required a big push of
investment supported with direct participation of the government in the
process of growth and development.
i) What was the main feature of Indian economy on the Eve of
independence?
a) Under development b) Semi feudal c) Stagnant d) All of these

ii) What does low productivity in agriculture mean ?

iii) Write the twin consequences of twin motive behind the systematic de-
industrialisation during British rule in India.

iv) Railways were developed by the British Raj as a means to enlarge the
size of market for the British goods. True/False
Answers:-
1.d
2.it implies per hectare low level of output.
3. i. Destruction of handicrafts in India
ii. Impetus to the process of industrialisation in Britain.
4.True

Question 21. Read the given strata and answer question 1 to 4.


The Indian economy comprises of all the production activities and
distribution activities that relate to people. It also comprises of economic
activities which related to people and hence determines their appropriate
standard of living. However, in this article, we will discuss the status of
the Indian economy on the eve of independence. It is important for every
Indian to know that on the eve of our independence, the economy of the
country was in a very bad shape. The end of the colonial rule left the
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 18


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
nation in bits. We picked it up and placed it in order. This bad condition of
the country was the outcome of every policy of the British. Since every
policy that they were framing was constantly focusing on favouring their
nation, we had very little left towards the end.
Therefore, in 1947, when British gave us back India to us, we took back
our torn nation.
Q1. Give any one positive contribution made by britishers during their
rule in India?
A1. Britishers introduced railways in India.

Q2. ‘Bad condition of the country was the outcome of every policy of the
British’. Give any one.
A2. Exploitation of Agriculture sector & farmers by introduction laws like
Zamindari system.

Q3. Which sector was most stagnant during british rule?


A3. Agriculture sector

Q4. When was the first capital good industry introduced in India?
A4. TISCO, 1907.

Question 22. Read case study and answer the following questions:
During the British Rule some basic Infrastructure was developed in form
of roads, railways, ports, water transport and post and telegrams. The
British introduced railways in 1850 and Indian railways begun operations
in 1853.when the first railways was started from Bombay to Thane ,since
then Railways were developed rapidly. It encourages the process of
Industrialisation India’s Industrial development.
Q-1 Is there any Positive contribution by Britishers for India.?
Q-2 When Indian railways begun operated ?
Q-3 Give description of first railway journey?
Q-4 Can you say that is there any Railway contribution in
Industrailisation?
Ans-1 Yes, Railway was main positive contribution by Britishers in India.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 19


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Ans-2 Indian railway begun operations in 1853.
Ans-3 The first railway train was started between Bombay to Thane ,a
distance of 34 kms.
Ans4-4 Yes, it encouraged the process of Industrialisation India’s industrial
development e.g cotton textile industries in Bombay, jute industry in
Calcutta, tea plantation in Assam and Bengal owe their development to
the expansion of Railways.

Question23. On the eve of independence approximately 75% population


was dependent on agriculture which was subsistence by nature. There
was slow or no economic growth in the country there was unemployment
,death and suffering due to lack of food. Moreover Indian agriculture was
subject to Zamindari system where they were not the actual tiller of the
soil and they used to adopt exploitative policy towards the actual
cultivators. They were not the cost sharer rather Zamindars were crop
sharer. During British era India had huge reserves of natural resources
too but those were used by Britishers for their own use. They followed
discriminatory tariff policy for systematic deindustrialization of India.
Their main motive was to convert India as their source of raw material
and market for their finished products, Due to widespread poverty
demographic profile was also not good..
1. The word “ Demographic Profile “ is related to _________ parameter.
ANSWER POPULATION

2. Tariff refers to__________ (penalty /fine/tax) It was called


discriminatory because_______
ANSWER TAX AND FAVOURED BRITAIN AGAINST INDIA

3.What is the meaning of Eve of Independence


ANSWER The Eve of means just prior to and not related to any special day
so it means just prior to independence.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 20


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
4. Slow and approaximately no change in economic growth points to
________ economy feature of Indian economy at the time of
independence.
ANSWER STAGNANT

Question 24. Read, the following hypothetical Case Study, carefully and
answer the following questions on the base of the same.
The Indian economy was highly agrarian as 85% of Indians depended on it.
But the sector remained stagnant as the British focused on extracting
maximum revenue and following land settlement system they are not
thinking about India’s capital development. The revenue collection system
further aggravated woes. The poor productivity, lack of irrigation and
other factors led to ruin of this sector. Although a few areas that grew
cash crops were seen to prosper but here to rural indebtedness increased
as food crops were neglected. Finally after partition the fertile and
irrigated jute growing areas went to Pakistan and India lost its monopoly.
i) Most of the Indian population get their livelihood from
_____________.
ii) The reason for stagnation in agriculture sector during British rule
was_________________.
iii) Which Indian industry was adversely affected due to the partition?
iv) _______________ of agriculture means production of crops for sale in
the market rather than for self-consumption.
Answers:
i) Agriculture
ii) Land settlement system
iii) Jute
iv) Commercialization
Question 25. It is a known fact that over 70% of India’s National Income
comes from its agricultural activities. Back then, before 1947, over 95% of
the country’s income came from its agricultural activity. And over 85% of
the country’s population lived in villages where livelihood completely
depended on agriculture. The Indian economy on the eve of
independence with respect to agriculture was disheartening. The most
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 21


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
important Indian sector was facing massive stagnation and continuous
deterioration.
Hence the resulting situation of the sector was as follows.
Low productivity level. Productivity and output per hectare of land were
very low. This situation led to a very low yield of output irrespective of
the large cultivation area.
High vulnerability level. Agricultural activities are dependent on climatic
factors. Because a poor rainfall generally led to a low output level and
high crop failures. And no efforts were made by the British to eradicate
irrigation issues. Hence making it vulnerable to external factors.
Discussed below are some of the reasons for the stagnation of the
agricultural sector.
The Indian economy on the eve of independence suffered and continues
to suffer the effects of zamindari system. In this system, the main focus of
the landlords is to extract rent regardless of the economic conditions of
the farmers. This is one of the focus reason for stress among farmers and
fear to take a chance to grow. Hence, leading to a stagnant agricultural
sector.
The lack of resources, be it financial or otherwise, is a critical factor
leading to a stagnant agricultural sector.
Extensive commercialization of agriculture refers to the shift from
cultivating for self to cultivating for sale in the market. This has not been
helpful in improving the condition of farmers due to the existence of
middlemen.
Q1 What was the main occupation of rural people before independence
Ans- Agriculture

Q2 What was the main source of irrigation during pre independence era?
Ans- Rainfall

Q3-What is the meaning of Extensive commercialization?


Ans-Extensive commercialization of agriculture refers to the shift from
cultivating for self to cultivating for sale in the market. This has not been
helpful in improving the condition of farmers due to the existence of
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 22


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
middlemen

Q 4 Why could extensive commercialization not help in improving


farmer’s conditions?
Ans-Extensive commercialization has not been helpful in improving the
condition of farmers due to existence of middlemen.

Question 26. The cotton textile mills, mainly dominated by Indians, were
located in the western parts of the country namely, Maharashtra and
Gujarat, while the jute mills dominated by the foreigners were mainly
concentrated in Bengal. Subsequently, the iron and steel industries began
coming up in the beginning of the twentieth century. The Tata Iron and
Steel (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 are hardly any capital goods industry to help promote
further industrialisation in India. The establishment of a few
manufacturing units here and there was no substitute to the near
wholesale displacement of the country’s traditional handicraft industries.
Furthermore, the growth rate of the new industrial sector and its
contribution to the Gross Domestic Product (GDP) remained very small.
i) What are capital goods industry ?
ii) Mention the drawback of the new industrial sector.
iii) Define GDP.
iv) TISCO was incorporated in the year _____________.
Answers:
i) Capital goods industry means industries which can produce machine
tools which are, in turn, used for producing articles for current
consumption.

ii) There was no substitute to the near wholesale displacement of the


country’s traditional handicraft industries.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 23


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
iii) The total value of final goods and services produced within a country’s
borders in a year, regardless of ownership.

iv) 1907

Question 27. One of the common debates I hear about india is whether
british colonilasim has been good or bad for the country’s economic
prospects. Defenders of biritish rule often cite the construction of the
railroads, or the spread of the english language, but as time passes the
evidence mounts that india would have been much better off on its own.
That’s of relevance for the shouting match , but it also beasrs on how
optimistic we should be about india today. If you view the colonial period
as a harmful aberration , you will tend to think india can catch up a it
leaves these distortions behind. Conversely, if you see british rule as a
plus, you may worry that india will eventualy lose some of that inherited
dynamism.
Some sample questions for discussion based on the given case
1. What are the few positive effects of British rule in India?
2. Which crop did Britishers asked Indian farmers to grow for them?
3. What was the purpose of Britishers to colonial India?

Ans. 1Britishers introduced new transport facilities, development of ports,


provision of post and telegraph services for communication purpose, a
base of a strong and efficient administrative setup, political and economic
unification of the country and lastly the evolution of banking and
monetary system across the country.

Ans. 2Britishers forced Indian farmers to grow indigo, cotton etc.

Ans. 3Britishers wanted to reduce the country to being a feeder economy


for Great Britain’s own rapidly expanding modern Indian base.

Question 28: Read the following news report and answer questions on the
basis of the same:
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 24


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Until 1991, India’s slow social and economic growth made it irrelevant in
the global scenario, other than as a recipient of financial aid from other
nations. But today leading nations view India as a potential superpower.
Once a country that had to rebuild itself from scratch, India now has the
third-largest GDP in the world in purchasing power parity terms. 15th
August 1947, a day celebrated by the entire country as Independence Day,
didn’t mark the end of a struggle but the beginning of a mammoth task of
rebuilding an entire country and its economy.
This year as we complete 73 glorious years of being an independent
nation, let’s reflect on some of the remarkable accomplishments of one of
the world’s fastest growing economies over the years. India’s
Independence in 1947 was the biggest turning point in its economic
history. Because of various attacks and deindustrialisation by the
Britishers, the country was left miserably poor and highly demoralised.
Questions:
a) What was the rate of growth of per capita output per year during the
first half of the twentieth century?
b) Which traditional industries was India particularly well known for
before the advent of the British rule?

c) What was the primary motive of British rule behind the de-
industrialization?

d) The exports surplus during the British rule was used:


i) To make payments for expenses incurred by an office set up by the
colonial government in Britain.
ii) To meet expenses on war fought by the British government.
iii) To import invisible items.
iv) All of these.

Answers:
a) It was only half per cent (0.5 percent).

b) Handicrafts Industries.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 25


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
c) The primary motive of British rule behind the de- industrialization
wastwo-fold:
i) To get raw materials from India at cheap rates to be used by
upcoming modern industries in Britain’
ii) To sell finished products of British industries in Indian market at
higher prices.

d) Option (iv) All of these

Question29. British government systematically destroyed Indian


handicraft industries and their primary motive behind this de-
industrialisation was two-fold:
i) To get raw materials from India at cheap rates to be used by upcoming
modern industries in Britain;
ii) To sell finished products of British industries in Indian market at higher
prices.
Q 1. There was a huge drain of wealth during the British rule. ( True/
False )
Q 2. India became an exporter of primary products and an importer of
finished consumer goods. So Indian economy was ……………………..
Economy. (Agrarian economy/ Colonial economy)
Q 3. British government systematically destroyed Indian ……………………
Industries (Handicrafts / modern industries)
Q 4. Indian handicraft industries enjoyed worldwide reputation before the
British rule. ( True / False )

Answers:
1. True
2. Colonial economy
3. Handicrafts
4. True

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 26


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Question30. Not only were the industrial and agricultural sectors of the
country affected but so was the foreign trade. Foreign trade plays a crucial
role in the development and earnings of a country. Although it is great to
be a self-sustaining and independent country, foreign trade and
globalization are critical to a country’s success. Indian economy on the eve
of independence in relation to the foreign trade was very poor. Due to the
rules imposed by the British, none of India’s products or skills had any
recognition. And hence, adversely affecting the structure, composition
and volume of the country’s foreign trade and income.
Q1. What do you mean by structure, composution and volume of foreign
trade?

Q2. What is the implication of ‘unequal terms of trade’in context with the
foreign trade policy during the British Raj?

Q3. What were the rules imposed by the British inconnection with the
country’s products or skills?
Ans.1. Structure means the sectoral share in the trade, composition
means the items of exports and imports and volume refers to the
quantum of exports and imports.
2. The export of raw material at low rate and import of finished goods
goods at high rate made the trade imbalanced or unequal.
3. The Britished declined the hadicraft by paying them megre amount for
the skill and effort involved also the labour was exploited while being
used for their own interest at the second world war time

Question 31. Backward, stagnant and non-vibrant agriculture during the


British Raj sharply contrasted with the pre-British period agriculture. Prior
to the British Raj in India, rural India was described as a system of self-
contained village communities. These village communities included
farmers and the functionaries. The farmers were engaged in crop farming
or cattle farming while the functionaries would render essential services
like that of blacksmiths, goldsmiths, washermen and shoe-makers.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 27


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Prosperous Agriculture even without Mechanization (Pre-British Period) .
There were no intermediaries (like zamindars) between the state and the
farmers; the farmers would pay land revenue directly to the king.
Prosperity and stability were the key characteristics of life in rural India.
Thus, the French traveler, Bernier, described Bengal in 17th century as
"richer than Egypt" producing amply for self-consumption and exporting
in abundance.
Answer the following question-
i) During British rule Indian economy was-
a. backward b. stagnant c. non vibrant d. all of the above

ii) ----------- described Bengal in 17th century as "richer than Egypt"


producing amply for self-consumption and exporting in abundance.

iii) Before British rule Indian economy was backward. (true/false)Give


reason.
iv) Why did Britishers come to India?

ANSWER-
a) d
b) The French traveler, Bernier
c) False, Prior to the British Raj in India, rural India was described as a
system of self-contained village communities
d) For trade

Question32 . Suez canal is an artificial waterway running from North to


South across the Isthmus of Suez in North –eastern Egypt. It connects port
said on the Mediterranean sea with the gulf of Suez, an arm of the Red
sea. The canal provides a direct trade route for ships operating between
European or American ports and ports located in South Asia, East Africa
and Oceania by doing away with the need to sail around Africa.
Strategically and economically, it is one of the most important waterways

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 28


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
in the world. Its opening in 1869 reduced the cost of transportation and
made access to the Indian market easier.
Answer the following questions:
i) Which of the following incident further intensified British control over
India’s foreign trade?
a) Commercialization of agriculture (b) opening of Suez canal
c) Zamindari system (d) none of the above.

ii) The opening of Suez canal :


a) raised the cost of goods transportation between Britain and India.
b) reduced the cost of transportation between Britain and India.
c) Adversely affected the monopoly control of India’s foreign trade.
d) reduced the export of goods from India to Foreign countries.
iii) The Colonial Government took measures for developing the inland
trade and sea lanes. However, these measures were far from satisfactory.
(True/ False)
Answers:
(1) (b)
(2) (b)
(3) True

Question 33. The intention of the British was to systematically de-


industrialise India by reducing it to a mere exporter of raw materials to
promote industries in Britain and turn India in to a sprawling market for
the products of those industries. During the second half of the 19th
century ,modern industry began to take root in India but its progress
remained very slow Cotton textile industries were located in the western
part of the country, namely Maharashtra & Gujarat, while the jute mills
were concentrated mainly in Bengal. The Tata Iron and Steel Company
(TISCO) was incorporated in 1907.However there was hardly any capital
goods industry to help promote further industrialization in India. Further
the growth rate of new industrial sector and its contribution to GDP

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 29


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
remained small. ---NCERT Text.

1What are capital goods industries ?


Answer :Those industries which can produce machine tools used to
produce articles for current consumption.

2What are the reasons cited for lack of industrial development in India on
the eve of independence.
Answer :The British wanted India to just be a supplier of raw materials
and an importer of finished products from Britain so that British industries
will prosper.

3Mention any 1 reason to state why industries were concentrated in


particular areas.
Answer: Climate, port facility, availability of water resources or any other
valid reason.

4.Why is it said the contribution to GDP was not much by the industries?
Answer :Hardly any new industry was set up .So the growth rate of new
industrial sector was very slow consequently their contribution to GDP
remained small.

Question 34. Nearly 85 % of the country’s population lived mostly in


villages and derived livelihood, directly or indirectly from agriculture. And
India could not develop a sound industrial base under the British rule and
was in poor state. Growth rate of the new modern industrial sector and its
contribution to the country’s GDP was very small i.e. Only one sixth
(about17%) of the GDP
Cotton textile mill by Indians in Maharashtra and Gujarat, Jute mills
dominated by the foreigners in Bengal. TISCO were incorporated in 1907.
Very limited operation of public sector. Only restricted to the railways,
power generation, communication, ports etc

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 30


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q. 1. The share of workforce engaged in agriculture during British rule was
___________
a. 75% b. 85% c. 65% d. 90%
Ans : (a) 85%

Q. 2. At the time of independence, the process of industrialization was


mainly supported by :
a) Imported machinery and technical know-how
b) Capital intensive nature
c) Typical colonial pattern of trade
d) Generating more employment opportunities
Ans : ( a) Imported machinery and technical know-how

Q. 3. The contribution of new modern industrial sector to the country’s


GDP was :
a. ¼ b. 1/6 c. 1/3 d. 1/5
Ans : ( b) Only One Sixth

Q.4. TISCO is the full form of :


a. Tata Steel Limited b. Tata Iron and Steel Company
c. Tata Steel Company and Organization d. Tata Steel Subsidiaries
Ans : (b) Tata Iron and Steel Company

Q35. Read the following hypothetical case study and answer the following
questions.
Indian economy is agriculture- based, or we can say India is an agrarian
economy, this is evident from the fact that the national Income of India
consists of 70% of the income generated from agriculture.
Before independence, the economy was 95% dependent on agriculture
and the revenue earned from agriculture.
It is worthwhile to mention that around 85% of the population was living
in villages, and the only means of subsistence was agriculture.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 31


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Concerning agriculture, the situation of the Indian economy on the Eve of
independence was disheartening. Agriculture being the most important
sector, was facing economy, debt and stagnation in the economy.
The following was witnessed with the changes in agriculture.
1. High vulnerability
2. Low productivity
High vulnerability means a reaction to any situation concerning the
change in agriculture factors.
If the country witnessed low rainfall in a month, then the resulting impact
will be low output level and how great of crop failure.
No productivity levels were witnessed and level of output declined
irrespective of a large area for cultivation.
Here are some factors that lead to stagnation of the agriculture sector.
1. The Indian economy was facing the adverse effect of the zamindari
system. The practice of making farmer work and collect a rent as tax
irrespective of the situation.
2. Scarcity of agriculture resources helping creating stagnancy in
agriculture.
3. The commercialization of agriculture meant moving from growing
goods for their conjunction to growing for the market. The existence of
the middle main prevented the development of the economic condition of
the farmers, which cost is the stagnation in the agriculture sector.

Q.1) Explain high vulnerability.


Ans. High vulnerability means a reaction to any situation concerning the
change in agriculture sector.

Q.2 )The commercialization of agriculture meant moving from growing


goods for their consumption to growing for the …………(middle main
/market).
Ans. Market

Q.3)Which helps ………. In creating stagnancy in agriculture.


Ans. Scarcity
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 32


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY

Q.4) What is low productivity?


Ans.Low productivity levels were witnessed and level of output decline
irrespective of a large area of cultivation.

Q36. Industrial Revolution in Britain played quite significant role in


changing the face of Industrial Sector in India. Swift technological changes
put forth the Britishers to adopt anti colonial Industrial and Commercial
Policies. The reason behind the same was clear that they had new
technologies of mass production and less per unit cost but they didn’t
have sufficient supplies of raw materials. Moreover, they wanted to
develop their colonies as market for selling finished goods manufactured
in their country.
(i) ‘Britishers tried to modernise the prevailing industrial structure of
India’. (True / False)? Comment with a reason.
Answer: False. British rulers never wanted to modernise the prevailing
industrial structure of India. There was a large-scale destruction of world-
famous handicrafts and cottage industries of the country.

(ii) What is a Discriminatory Tariff Policy?


Answer: This policy allowed free export of raw material from India and
free import of final goods of British industry to India but heavy duty was
imposed on the export of Indian handicrafts.

(iii) _________ industry suffered the most under British rule.


Answer: Handicraft
(iv) Which industry was adversely affected due to partition?
a. Silk b. Cotton c. Jute d. Nylon
Answer: Jute

Question 37. Before the British period, India’s well-known industry was
the handicraft and textile industry. India was well-known for its industries
in cotton and silk textiles as well. And in addition, Indians were excellent
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 33


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
in metal and precious stonework as well. When the Britishers came, they
were followers of de-industrialization in India. They did this by creating
situations which were conducive to the decay of the handicraft and textile
industry. They also did not make any effort to promote to permit the
continuation of the metal and precious stone works.
The traditional handicraft industry in India initially was in high demand.
But the British rule completely discriminated the practice. The prevalence
of discriminatory tariff policy and the competition from machine-made
products was very critical for the downfall. Also, the introduction of
railways in India was the reason for market expansion. Consequently, the
demand for the handicrafts began to fall. All of these directly led to the
downfall of our prominent industry.
Q1. Why did Britishers want to destroy Indian handicrafts?
Ans. They wanted to destroy Indian handicrafts to make room for
Britishers industries in the Indian market.

Q2. What tactics did Britishers apply to destroy Indian handicrafts?


Ans. They applied discriminatory tariff policy.

Q3. How did the introduction of railway help British Industries in India?
Ans. The introduction of railway help Britishers in getting raw materials
from remote areas of the country and in expanding market for British
goods in Indian market.

Q4. Define the term tariff.


Ans. Taxes imposed by the government

Question 38.
Madam President and gentlemen, ladies of the house
I standing here with eight minutes in my hands in this venerable and
rather magnificent institution.
Well I stand to offer you the Indian example, Sir Richard. India share of
the world economy when Britain arrived on it's shores was 23 per cent, by

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 34


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
the time the British left it was down to below 4 per cent. Why? Simply
because India had been governed for the benefit of Britain.
Britain's rise for 200 years was financed by it's depredations in India. In
fact Britain's industrial revolution was actually premised upon the de-
industrialisation of India.
. LokSabha MP Shashi Tharoor’s speech in UK
Q1.What do you mean by de-industrialisation of India?
Ans. It means decline of handicraft industries.

2. India had been governed for the benefit of Britain. True/False


Ans. True. India become an exporter of raw material and importer of
finished product which had benefited Britain’s industrial revolution.
The handloom weaver's for example famed across the world whose
products were exported around the world, Britain came right in. There
were actually these weaver's making fine muslin as light as woven wear, it
was said, and Britain came right in, smashed their thumbs, broke their
looms, imposed tariffs and duties on their cloth and products and started,
of course, taking their raw material from India and shipping back
manufactured cloth flooding the world's markets with what became the
products of the dark and satanic mills of the Victoria in England.

3. The main reason for the decline of India’s renowned handicraft industry
was___________ tariff policy
Ans. Discriminatory Tariff Policy
That meant that the weavers in India became beggars and India went
from being a world famous exporter of finished cloth into an importer
when from having 27 per cent of the world trade to less than 2 per cent.

4. India became beggars and India went from being a world famous
exporter of finished cloth into an importer due to British policy of
____________ ___________
Ans. Systematic de-industrialisation

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 35


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Question 39. Read, the following hypothetical Case Study, carefully and
answer the below question on the basis of the same.
During the decades of British colonial rule in India, there were no efforts
made to calculate India’s per capital income. Similarly, the British rulers
never found it necessary to calculate our National Income or our Gross
Domestic Product. Upon gaining independence, some Indian individuals
did try to measure India’s incomes. But the attempts tragically failed due
to inconsistency, lack of expertise and inaccuracy. But the contributions of
few Indian economists were very significant in this field.
Although India was a very independent economy before the British rule,
towards the end, it was exhausted. The Indian economy on the eve of
independence was struggling to find the path. Since all the policies that
the British were framing only promote their interests, we were diverging
from prosperity. We were mere raw-material suppliers to the British. They
made use of our labour without treating them well. The 200 years of
British rule also took away our will to gain knowledge and awareness.
Since we were their slaves, we never got the right to proper education.
And as a result of these actions, towards the end of their reign, we were
illiterate. The Indian economy on the eve of independence was full of
people who had absolutely no plan as to how to help the nation.
Q.1. Which Indian economists’ estimates were considered significant in
calculating National and Per capita income during British rule?
Q.2. Reason for decline of Handicraft industry is _____________(
Discriminatory tariff policy/Non- discriminatory tariff policy).

Q.3. The overall literacy level was less than ______( 20 percent /16 percent) on the
eve of independence.

Q.4.Stagnation in agriculture was caused due to ___________( Land settlement


system/ Two Fold policy)
Ans: 1. V.K. Rao 2. Discriminatory tariff policy 3. 16 percent. 4. Land settlement
system.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 36


ARIHANT COACHING CENTRE (2020-21)
21)
SACHIN JAIN:
JAIN:-9810250321,
9810250321, 7011147478
CH--1 CASE STUDY
Question 40. See, the following Image, carefully and answer the below question on
the basis of the same.

Q.1. The bridge in the above image links Bombay with which city ?. (Name
the city)

Q.2. In India First Passenger Railway runs in which year.


(a) 1853 (b). 1854
(c) 1851 (d) 1850
Q.3. Britisher’s launched railway in India in ___________ (1852/1850).
Q.4. Why britishers introduced railway?
Answers:
1.Thane
2. (a) 1853
3. 1850
4. To take long distance travel and thus break geographical and cultural
barriers.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 37


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Question 41. Read the following Article, carefully and answer the
Question Number 1-4 on the basis of the same.
India’s independence was in itself a turning point in its economic history.
The country was hopelessly poor as a result of steady deindustrialization
by Britain. Less than a sixth of Indians were literate. The abject poverty
and sharp social differences had cast doubts on India’s survival as one
nation. Cambridge historian Angus Maddison’s work shows that India’s
share of world income shrank from 22.6% in 1700—almost equal to
Europe’s share of 23.3%—to 3.8% in 1952. As former prime minister
Manmohan Singh put it: “The brightest jewel in the British Crown" was
the poorest country in the world in terms of per capita income at the
beginning of the 20th century.
1. What do you mean by deindustrialisation?
2. State any two objectives of the policy of deliberate deindustrialisation
pursued by the British ruler in India
3. Define per capita income.
4. What is the impact of Caste system on the development of Indian
Economy.
Ans 1 destroying the industrial capacity of a country
2 reduce the status of India to mere exporter of raw material b) turn India
into a market for the products of British Industries.
3 Per Capita Income = National Income/ total population
4 (Key Points) Hinders the path of development, divide the country
,resources being used for integrating the Economy.

Question 42. The current Foreign Trade Policy (2015-20) focusses on


improving India’s market share in existing markets and products as well as
exploring new products and new markets. India’s Foreign Trade Policy
also envisages helping exporters leverage benefits of GST, closely
monitoring export performances, improving ease of trading across
borders, increasing realization from India’s agriculture-based exports and
promoting exports from MSMEs and labour intensive sectors. The DoC has
also sought to make states active partners in exports. As a consequence,
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 38


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
state governments are now actively developing export strategies based on
the strengths of their respective sectors.
While the external environment has a major role to play in the success of
export policies, it is also critical to address constraints within India .
According to current WTO rules as well as those under negotiation India
needs to eventually phase out subsidies and move towards fundamental
systemic measures in the future. Under the Agreement on Subsidies, India
has moved on from Annex VII countries of WTO on breaching the US$
1,000 per capita income benchmark for 3 consecutive years in 2015.
The government is looking to focus on promoting exports of high value-
added products, where India has a strong domestic manufacturing base,
including engineering goods, electronics, drugs and pharmaceuticals,
textiles and agriculture. This is apart from the continued push to AYUSH
and the Indian services sector.
Around 70% of India’s exports constitute products that have just 30%
share in global trade. The government is looking at some more promising
product groups like defence equipment, medical devices, agro-processing,
technical textiles and chemicals.
i) What was the condition of foreign trade policy of India during British
rule?
ii) Name any one external and internal environment on which Indian
exports depend.
iii) What is the advantage of promoting exports?

Ans.
i) Condition was really bad. India was mainly the exporter of agricultural
products and provider of raw material to England.
ii) External : quality and price of products
Internal : government policy on exports

iii) Maintaining BOP , increasing foreign exchange , improvement in trade.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 39


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
UNSOLVED
Question43. Read the following news report and answer Questions i—iv
on the basis of the same:
"A country that was the world leader in at least three industries- textiles,
steel and ship building. A country that had everything... And after 200
years of exploitation, expropriation and clean outright looting, this
country was reduced to one of the poorest countries in the world by the
time the British left in 1947," According to Shashi Tharoor
i).The British changed the structure of the Indian economy by making it a
net supplier of raw materials and a consumer of-----------( finished
goods/intermediate goods) (1 Mark)

ii) Most of the studies disclosed that India’s growth of aggregate real
output during the first half of the twentieth century was less than: :
a) 0.5 % b) 5% c) 2% d) 1.5%

iii. The traditional handicrafts industries were destroyed as a result of


British Policies, no modern industries were allowed to come up in their
place. The primary motive behind this was to reduce India to an
(exporter/Importer) of raw material for British Industries

iv) Which one of the following statement is correct? (1 Mark)


a) Railway line was started by Indians
b) 1921 is known as the Year of Great Divide
c) Life expectancy was higher before Independence
d) The Per Capita Income of India was high before Independence

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 40


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q1. Read the following statement and choose one of the correct
alternative
Assertion : The Zamindars were declared as owners of the soil. They
were supposed to pay a fixed sum to the government while they could
extract as much as they wanted from the actual tillers of the soil.
Reason : Agriculture was exploited through Zamindari system of Land
Revenue
Alternatives:
a) both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b) both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false
d) Assertion (A) is false but Reason (R) is true
Ans: a

Q2. ASSERTION (A): More than Half of India’s Foreign trade was
restricted to Britain
REASON (R ) : Britain maintained Monopoly control on India’s Import
and Export
a. Both A and R are true and R is the correct explanation of A
b. Both A and R are true and R is not the correct explanation of A
c. A is true, but R is false
d. A is false, but R is true ANSWER: a

Q3. Assertion: (A): India was more of a consumer than a supplier of


materials for finished goods
REASONING ®: British policies were more directed towards their own
economic interests.
Alternatives:
A .Both Assertion and Reason are true, and Reason is the correct
explanation of Assertion.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 41


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
B . Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion..
C. Assertion is true,but Reason is false
D. Assertion is false but Reason is true..
Ans. D

Q4. Assertion (A): The two important industries which were adversely
affected by partition were Cotton textile and Jute industry.
Reason (R): India faced problem of rehabilitation of large number of
refugees from Pakistan.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true
Ans:
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion

Q5. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): The construction of railways led to huge economic
losses to the Indian economy.
Reason (R): It enhanced commercialization of Indian agriculture, which
adversely affected the comparative self-sufficiency of the village
economies in India.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 42


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
d. Assertion (A) is false but Reason (R) is true.
Answer :. b. Both Assertion (A) and Reason (R) are true and Reason (R)
is not the correct explanation of Assertion (A)

Q6.
A/R Based Question
1. Read the following statements - Assertion (A) and Reason (1)
(R). Choose one of the correct alternatives given below:
Assertion (A): The British introduced the railways in India in
1850 and it is considered as one of their most important
contributions.
Reason (R): Along with the development of roads and
railways, the colonial dispensation also took measures for
developing the inland trade and sea lanes.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason
(R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason
(R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans B

Q7. Directions: For the Assertions (A) and Reasons (R), choose the correct
alternative from the following:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A
(c)A is true but R is false
(d) A is false but R is true.
(e) If both A and R are false
A:- The major policy initiatives that is land reforms and green revolution
helped India to become self-sufficient in food grains production.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 43


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
R:- The proportion of people depending on agriculture did not decline as
expected.
Ans: b

Q8. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): India had an independent economy before the advent of
British rule. Though agriculture was the main source of livelihood for
most people, yet, the economy of the country was characterised by
various kinds of manufacturing activities.
Reason (R): There was lack of capital goods industries in India.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans. b. Both Assertion (A) and Reason (R) are true and Reason (R) is
not the correct explanation of Assertion (A)

Q9. (A) Indian agriculture sector suffered due to partition.


(R) A sizeable proportion of the undivided countries highly
irrigated and fertilizers land went to Pakistan.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans :A

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 44


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q10. (A): There was hardly any capital goods industry to help promote
further industrialisation in India.
(R): Machinery and manufacturing equipment fall under the category
of capital goods.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans b. Both Assertion (A) and Reason (R) are true and Reason (R) is not
the correct explanation of Assertion (A).

Q11. Assertion(A ) Under the British raj discriminatory tariff policy was
perused with a view to protect domestic industry.
Reason (R ) .it was perused to get an access to the Indian market for
the British industrial products.
(Choose correct alternative)
A. Both Assertion and Reason are true and Reason is the correct
explanation of Assertion.
B. Both Assertion and Reason are true and Reason is not correct
explanation of the Assertion
C. Assertion is true but Reason is false
D. Assertion is false and Reason is true.
Answer: D

Q12. Assertion: India was well known for its handicraft industries
before the advent of British rule.
Reason: India’s handicraft industries enjoyed worldwide reputation.
a) Both assertion and reason are true and reason is the correct
explanation of assertion.
b) Both assertion and reason are true but reason is not the correct
explanation of assertion.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 45


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
c) Assertion is true but reason is false.
d) Assertion is false but reason is true.
Ans. 1. Both assertion and reason are true and reason is the correct
explanation of assertion.

Q13. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): the agricultural sector on the eve of independence
suffered from low productivity.
Reason (R): due to decline in handicrafts, people were pushed back
into agriculture and so it becomes overcrowded.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Answer: (a) Both Assertion (A) and Reason (R) are true and Reason (R)
is the correct explanation of Assertion (A)

Q14.
A/R Based Question
1. Read the following statements - Assertion (A) and Reason (1)
(R). Choose one of the correct alternatives given below:
Assertion (A): The British introduced the railways in India in
1850 and it is considered as one of their most important
contributions.
Reason (R): Along with the development of roads and
railways, the colonial dispensation also took measures for
developing the inland trade and sea lanes.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 46


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
(R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason
(R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans B

Q15. Directions: For the Assertions (A) and Reasons (R), choose the
correct alternative from the following:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A
(c)A is true but R is false
(d) A is false but R is true.
(e) If both A and R are false
A:- The major policy initiatives that is land reforms and green
revolution helped India to become self-sufficient in food grains
production.
R:- The proportion of people depending on agriculture did not decline
as expected.
Ans: b
Q16. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): India had an independent economy before the advent of
British rule. Though agriculture was the main source of livelihood for
most people, yet, the economy of the country was characterised by
various kinds of manufacturing activities.
Reason (R): There was lack of capital goods industries in India.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 47


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Ans. b. Both Assertion (A) and Reason (R) are true and Reason (R) is
not the correct explanation of Assertion (A)

Q17. Assertion: During the British rule in India, Britishers built roads
extensively to cover the nation.
Reason: Roads were built by Britishers primarily to mobilise army.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Answer: d

Q18. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): Zamindari system of land revenue gave incentives to
tillers of soil to increase their productivity.
Reason (R): Under zamindari system, the tillers lacked ownership
rights. As a result, they had no interest in improving the agriculture.
Alternatives:
a) both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b) both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false
d) Assertion (A) is false but Reason (R) is true
Ans: d

Q19. Assertion :Railways adversely affected the self -sufficiency of the


village economies in India.
Reason :Indian agriculture was hugely commercialised due to the
introduction of Railways.
a) Both A and R are true and R is the correct explanation of A.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 48


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
b) Both A and R are true and R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Ans - a) Both A and R are true and R is the correct explanation of A.

Q20. Assertion(A) . Indian economy became stagnant and


underdeveloped during the colonial period.
Reason(R) . The colonial government developed the good
infrastructure like, railways, postage and telegraphs etc. For the
development of India.
a) Both Assertion(A) and Reason(R )are true and Reason(R)is the
correct explanation of the assertion.
b) Both Assertion(A) and Reason (R)are true but Reason(R) is not the
correct explanation of Assertion(A) .
c) Assertion (A)is true but Reason(R )is false.
d) Assertion(A) is false but Reason(R)is true.
Answer. (C)

Q21.Read the following statements -Assertion (A) and Reason (R).


Choose the correct answer from below:-
Assertion (A): During colonial rule, Britishers had monopoly control
over India’s foreign trade.
Reason(R): A discriminatory tariff policy leads to drain of India’s
wealth.
a. Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b. Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c. Assertion is true but Reason is false.
d. Assertion is false but Reason is true.
Answer:-b

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 49


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q22. Assertion:- Britain maintained a monopoly control over India’s
exports and imports.
Reason:- The opening of Suez Canal further intensified British control
over India’s foreign trade.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion(A).
c) Both Assertion(A) and Reason(R) are true and Reason(R)is not the
correct explanation of Assertion (A).
d) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Ans:Both Assertion(A) and Reason(R)are true andReason(R) isnot the
correct explanation of Assertion (A).

Q23. Choose the correct option from the following:


Assertion(A): During the entire colonial period, India’s exports exceed
its imports.
Reason (R): India became a exporter of primary products such as
cotton ,jute, indigo ,raw silk, wool etc. and imports of consumer goods,
e.g. cotton ,silk, capital goods like machinery etc.
1. Both Assertion(A) and Reason (R) are true and Reason(R) is the
correct explanation of Assertion(A)
2. Both Assertion(A) and Reason (R) are true and Reason(R) is the not
correct explanation of Assertion(A).
3. Assertion(A) is true but Reason(R) is false.
4. Assertion (A) is false but Reason (R) is true.
Ans OPTION “ 1”

Q24. ASSERTION (A) During British rule there was tremendous drain of
resources from India to Britain
REASON (R) Britishers main concern was to develop India’s industries.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) are (R) are true and (R) is not the correct explanation of (R)
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 50


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
(c) (A) is true (R) is false.
(d) (A) is false (R) is true
ANSWER (c)

Q25. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A) British maintained the Monopoly control over India's
export and import
Reason (R): Opening of Suez Canal in 1869 reduce the cost of
transportation and made access to Indian market easier.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Answer: a

Q26-Read the following statements-Assertion(A)andReason (R).


Choose one of the correct alternatives given below:
Assertion (A): Indian economy faced a decline in its Handicraft industry
Reason(R): Discriminatory Tariff Policy adopted by government aimed
at free export of raw materials from India and free import of final
goods British Industry to India.
Alternatives:
(a) Both Assertion(A) and Reason (R)are true and Reason(R) is the
correct explanation of Assertion(A).
(b)BothAssertion(A)andReason(R)aretrueandReason(R)isnotthecorrect
explanation of Assertion (A)
(c) Assertion(A)is true but Reason(R)is false.
(d) Assertion(A)is false but Reason(R)is true.
Ans-a

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 51


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q27. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A) British maintained the Monopoly control over India's
export and import
Reason (R): Opening of Suez Canal in 1869 reduce the cost of
transportation and made access to Indian market easier.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Answer: a

Q28. Assertion: India became an exporter of primary products and an


importer of finished consumer goods.
Reason: The opening of the Suez Canal further intensified British
control over India’s foreign trade.
Alternatives:
a) Both Assertion (A) and Reason (R)are true and Reason (R)is the
correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R)are true and Reason (R)is not the
correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R)is false.
d) Assertion (A)is false but Reason (R)is true.
SOLUTION:

Q29. Read the following statements - Assertion and Reasoning


Choose one of the correct alternatives given below-
Assertion (A) : Postal services in colonial India were replaced by the
expensive electric telegraph.
Reason(R ): – Electric telegraph was introduced primarily to serve the
Britisher’s interest.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 52


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Alternatives-
a) Both Assertion and Reason are True and Reason is the correct
explanation of assertion
b) Both Assertion and Reason are True and Reason is not the correct
explanation of assertion
c) Assertion is true but reason is false
d) Assertion is false but reason is true
ANS-D

Question30:
Assertion- The British rulers succeeded in killing the domestic market
for Indian manufactured products.
Reason- British rulers allowed duty-free imports to India of their
products from England.
a) Both Assertion and Reason are true and reason is the correct
explanation of assertion.
b) Assertion is false but Reason is true.
c) Assertion is true but reason is false.
d) Both Assertion and reason are false.
Answer: Option (a)

Q31. Read the following statements- Assertion (A) and Reason (R) .
Choose one of the alternative given below.
Assertion (A) During British rule India saw a huge drain of wealth .
Reason ( R) India generated huge export surplus during the period.
Alternatives:
a) Both Assertion ( A) and reasoning ( R) are true and Reason ( R) is the
correct explanation of Assertion ( A).
b) Both Assertion( A) and Reasoning ( R) are true and Reason ( R) is not
the correct explanation of Assertion ( A).
c) Assertion ( A) is true but Reasoning ( R) is false.
d) Assertion ( A) is false but Reasoning ( A) is true.
ANS…b
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 53


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY

Q32. Read the following statements- Assertion ( A) and Reason ( R) .


Choose one of the correct alternatives given below;
Assertion ( A) : Britishers destroyed indigenous handicraft market in
India.
Reason ( R) : India was made market for British manufactured
products.
Alternatives
a) Both assertion ( A) and reason ( R) are true and Reason ( R) is the
correct explanation of Assertion ( A).
b) Both Assertion ( A) and Reason ( R) are true and Reason ( R) is not
the correct explanation of Assertion ( A)
c) Assertion ( A) is true but Reason ( R) is false
d) Assertion ( A) is false but Reason ( R) is true.
Ans… a .

Q33. Assertion: Agriculture sector of the economy was backward,


stagnant and non-vibrant. It was a crucial economic change.
Reason : There was an urgent need of modernisation, diversification,
capacity building and increased public investment in industrial sector.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
Answer : (b)

Q34. Read the following statements –


Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Alternatives:

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 54


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
a. Both Assertion (A) and Reason (R) are true, and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true, and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true, but Reason (R) is false.
d. Assertion (A) is false, but Reason (R) is true.
(A) Indian economy under british rule was completely agrarian.
( R ) About 85% of the coutry’s population lived in villages and were
completely dependant on agriculture.
Ans: a

Q35
Assertion (A) Introduction of railways enabled the people to undertake
long-distance travel.
(R ) This facilitated the breaking of the geographical and cultural
barriers.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
Ans. A

Q36.
(A ) The primary motive of the colonial government behind the policy
of deindustrialisation was two-fold.
(R ) The decline of the handicraft industry not only created large
unemployment but also a large demand in the indian consumer
market.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 55


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
Ans/ b

Q37. Assertion :Railways adversely affected the self -sufficiency of the


village economies in India.
Reason :Indian agriculture was hugely commercialised due to the
introduction of Railways.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true and R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Ans - a) Both A and R are true and R is the correct explanation of A.

Q39. Assertion: During the British rule in India, Britishers built roads
extensively to cover the nation.
Reason: Roads were built by Britishers primarily to mobilise army.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Answer: d

Q40.Read the following statements- Assertion (A) and Reason (R).


Choose one of the correct alternatives given below:
Assertion (A): Railways moderated the impact of famines during the
colonial period.
Reason (R): Railways facilitated the movement of foodgrains from
surplus zones to afflicted areas
Alternatives:
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 56


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
a) Both Assertion (A) and Reason (R) are true and the Reason (R) is the
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and the Reason (R) is not
the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false
d) Assertion (A) is false but Reason (R) is true
Ans-Both Assertion (A) and Reason (R) are true and the Reason (R) is
not the correct explanation of Assertion (A)

Q41. ASSERTION: Britishers destroyed indigenous handicraft market in


India.
REASON: India was made market for British manufactured products.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
ANSWER: Both (A) and (R) are true and (R) is the correct explanation of
(A).

Q42. ASSERTION: During British rule, India saw huge drain of wealth.
REASON: India generated large export surplus during the period.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
ANSWER: Both (A) and (R) are true but (R) is not the correct
explanation of (A).

Q43 ASSERTION: During the British colonial rule in India, Britishers


built roads extensively to cover the nation.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 57


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
REASON: Roads were built by Britishers primarily to mobilize army.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
ANSWER: (A) is false but (R) is true

Q44. ASSERTION: India became an exporter of primary products and an


importer of finished consumer goods and capital goods produced in
Britain.
REASON: Restrictive policies of commodity production, trade and tariff
pursued by the colonial government adversely affected the structure,
composition and volume of India’s foreign trade.
a) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion
b) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
ANSWER: Both (A) and (R) are true and (R) is the correct explanation of
(A).

Q45. Assertion ;The structure of India’s present day economy is not


just of current making, it has its roots stepped in history.
Reasoning : The sole motive of the British was to reduce India to a
mere raw material supplier rather than step up developmental
activities in India.
1Assertion only is right.
2 Only reasoning is right.
3Both are wrong .

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 58


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
4.Both are correct.
ANSWER- Both are correct.

Q46.
Assertion(A)andReason(R).Chooseoneofthecorrectalternativesgiven
below:
Assertion(A):. The contribution from agricultural contribution
experienced some growth during colonial
Reason (R) : There was expansion of the aggregate area under
cultivation during this period
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion(A).
b)Both Assertion(A) and Reason(R) are true and Reason(R) is not the
correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion(A). – reference Pg6 NCERT

Q47. Assertion (A) : With commercialization of agriculture in pre-


independence India, a small section of farmers changed their cropping
pattern from food crops to commercial.
Reason (R) : Commercialization of agriculture during the Colonial Rule
helped the farmers improve their financial position
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans. c) A is true but R is false.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 59


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q48.
(A) The restrictive policies of commodity production, trade and tariff
pursued by the Colonial government adversely affected the structure,
composition and volume of India’s foreign trade.
(R) The export surplus generated during colonial period did not result
in any flow of gold or silver into India.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Answer: (b) Both A and R are true, but R is not the correct explanation
of A.

Q49.
Assertion :During colonial period , occupational structure did not
change much more.
Reason :It was due to pre-dominance of agricultural sector and
growing regional variations.
a. Both A and R are true and R is the correct explanation of A
b. Both A and R are true and R is not the correct explanation of A
c. A is true, but R is false
d. A is false, but R is true

ANSWER
a. Both A and R are true and R is the correct explanation of A

Q50.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not
the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 60


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
d. Assertion (A) is false but Reason (R) is true.
Assertion : British colonial government developed railways in India.
Reason : The main objective behind development of railways was the
development of Indian economy.
Ans. c. Assertion (A) is false but Reason (R) is true.

Q51. Assertion: India entered into IInd stage of demographic transition


theory in 1921
Reason: British colonial government was forced to increase medical
facility and food security due to severe famines in 1920’s which lead to
decrease in death rate.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans. a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)

Q52. Assertion: British colonial government followed systematic


deindustrialization in India.
Reason : Their main objective was to convert India into an exporter of
raw material for British Industries.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Ans. b) Both Assertion (A) and Reason (R) are true but Reason (R) is not
the correct explanation of Assertion (A)

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 61


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY

Q53. Read the following statement Assertion (A) and Reason (R ).


Choose one of the correct alternative given below:
Assertion (A) : The land revenue system particularly the zamindari
system introduced by the Britishers caused a lot of misery and social
tension among the cultivators of land.
Reason (R ) : Low level of productivity of agriculture land on account of
the tillers not having any surplus fund to spend on fertilizer, Irrigation
facilities etc.
Alternatives:
a) Both assertions and reason are true and reason is the correct
explanation of assertion.
(b) Both assertion and reason are true and reason is not the correct
explanation of assertion.
( C) Assertion is true, but reason is false.
(D) Assertion is false, but reason is true.
Ans . (b) Both assertion and reason are true and reason is not the
correct explanation of assertion.

Q54. Assertion: Britishers pursued ‘dual motive’ strategy to de-


industrialise India’s handicraft industry.
Reason: Indian became a mere exporter of raw materials and importer
of finished goods.
Alternatives:
(i) Both Assertion and Reason are true and Reason is the correct
explanation of Assertion.
(ii) Both Assertion and Reason are true and Reason is not the correct
explanation of Assertion.
(iii) Assertion is true but Reason is false.
(iv) Assertion is false but Reason is true.
Answer: (i) Both Assertion and Reason are true and Reason is the
correct explanation of Assertion.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 62


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q55.Assertion (A): India could not develop a sound industrial base
under the colonial rule
Reason (R): Because the intention of colonial rule was to reduce India
to the status of a mere exporter of important raw materials for the
upcoming modern industries in Britain.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Answer :-
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)

Q56. Read the following statements-Assertion(A) and Reason(R).


Choose one of the correct alternatives given below
Assertion (A) During the colonial period, balance of trade remained
unfavourable..
Reason (R) There was a large export surplus during the colonial period.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
true correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason(R) is correct.
Ans.(d)

Q57. Assertion (A) The year 1921 is described as the year of Great
Divide.
Reason (R) It was from this year, population started increasing
continuously.
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 63


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
true correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason(R) is correct.
Ans. (a)

Q58. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): Railways and roads were really built to serve interests
of the local people.
Reason (R): They were designed to carry raw materials from the
hinterland into the ports to be shipped to Britain.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans. d. Assertion (A) is false but Reason (R) is true.

Q59. Assertion : British rule exploited India in many ways.


Reason :Their exploitative programmes and policies resulted in some
positive impact on India
A) Assertion is correct and Reason is supporting assertion
B) Assertion is correct but reason is not supporting assertion
C) Assertion and reason both are incorrect
D) None of the above
Ans: b

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 64


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q60. Readthefollowingstatements-
Assertion(A): Deindustrialisation – decline of handicraft industry.
Reason (R): The primary motive of British rule was twofold, that is to
make India a mere raw-material supplier to the British industries and
sell finished products of British industries in Indian market at high
price.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion(A).

Q61. (A) Aviation Sector in India was established post / independence.


(R) British Government did not introduce aviation in India like it did for
Railways.
a. Both Assertion and Reason are true and the Reason is the correct
explanation of the assertion
b. Both Assertion and Reason are true and Reason is nog correct
explanation of Assertion
c. Assertion is true but Reason is false
d. Assertion is false but Reason is true
Ans. c. Assertion is true but Reason is false

Q63. Read the following statements- Assertion(A) and Reason (R).


Choose one of the correct alternatives given below:
Assertion (A): In India, agriculture is a seasonal activity.
Reason (R): More than required people are engaged in agriculture.
Alternatives:
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 65


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Ans: b) Both Assertion (A) and Reason (R) are true, and Reason (R) is
not the correct explanation of Assertion (A).

Q64. Assertion (A): India inherited a well developed infrastructure


from the British.
Reason (R): Britishers developed roads and introduced railways in
India.
1. A and R both correct. R is correct explanation of A.
2. A and R both correct. R is not the correct explanation of A.
3. A is true but R is false.
4. A is false but R is true.
Answer: 4. A is false but R is true.

65. ASSEETION- The traditional handicrafts industries were ruined


under the British rule.
REASON-Decline of India’s handicraft industry due to ‘Discriminatory
tariff policy’ i.e free export of raw materials from India and free import
of final goods of British industry to India.
1. A and R both correct. R is correct explanation of A
2. A and R both correct. R is not the correct explanation of A.
3. A is true but R is false
4. A is false but R is true.
ANSWER-(1)

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 66


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q66. Read the following statements -
Assertion (A) and Reason (R). Choose oneof the correct alternatives gi
ven below:
(A)Statistical methods help analyze economic problem and formulate
policies to solve them.
(B) Once the causes of the problem is identified it is easier to
formulate a policy to solve it.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A)

Q67
. Read the following statements - Assertion (A) and Reason 1
(R). Choose one of the correct alternatives given below:
Assertion (A): Electric telegraph and postal services were
expensive system introduced by British.
Reason (R): Prevalence of rampant poverty and
unemployment required welfare orientation of public
economic policy.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason
(R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason
(R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Ans. Both Assertion (A) and Reason (R) are true and
Reason (R) is not the correct explanation of Assertion (A).
IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 67


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY

Q68. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below
Assertion (A) : By introducing Indian railways, British government
digged its own grave in India.
Reason (R) : Indian railways allowed Indians to get help from foreign
countries.
Alternatives:
1. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true but Reason (R) is not the
correct explanation of Assertion (A)
3. Assertion (A) is true but Reason (R) is false.
4. Assertion (A) is false but Reason (R) is true.
Ans. Option (3)

Q69. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): Railways was the most important infrastructure
developed during the British period.
Reason (R) : Railways enabled people to undertake long distance
travel. It broke geographical and cultural barriers which promoted
national integration.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not
the correct explanation of Assertion(A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Ans: Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 68


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Q70. Assertion: Colonial government levied 0% import duty on British
goods imported in India.
Reason:Colonial government systematically destroyed Indian
handicraft industry. 1
A - Both A and R are true and R is the correct explanation of A.
B - Both A and R are true but R is NOT the correct explanation of A.
C - A is true but R is false.
D - A is false but R is true.
E - Both A and R are false
Answer: A - Both A and R are true and R is the correct explanation of A.

Q71. Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A): Zamindari system of land revenue gave incentives to
tillers of soil to increase their productivity.
Reason (R): Under zamindari system, the tillers lacked ownership
rights. As a result, they had no interest in improving the agriculture.
Alternatives:
a) both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b) both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false
d) Assertion (A) is false but Reason (R) is true
Answer b.

UNSOLVED
Read the following statement- Assertion (A) and Reason (R). Choose
one of the correct alternatives given below
Assertion: Some efforts were made by the Colonial Regime to improve
infrastructure facilities in India.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 69


ARIHANT COACHING CENTRE (2020-21)
SACHIN JAIN:-9810250321, 7011147478
CH-1 CASE STUDY
Reason: The real objective of the British was to sub serve various
Colonial interests.
Alternatives:
A. Both A and R are true but R is the correct explanation of A.
B. Both A and R are true but R is not correct explanation of A.
C. A is true but R is false.
D. A is false but R is true.

IF YOU ARE REALLY AWARE OF YOUR FUTURE ALWAYS REMEMBER “ARIHANT COACHING CENTRE”

SUBJECTS: Accountancy, Economics, Stats, Tax, Costing, Business, Financial management 70

You might also like