CHAPTER-1-INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

MULTIPLE CHOICE QUESTIONS

1 Per capita income refers to

(a) Income per head of total population in the country
(b) Income per head of total labour force in the country
(c) Income per head of total workforce force in the country
(d) None of these
2 Export surplus refers to
(a) Value of export > value of import
(b) Value of export < value of import
(c) Value of export = value of import
(d) None of these
3 Wealth drain is associated with
(a) R C Desai
(b) Dadabhai Naoroji
(c) V V K R V Rao
(d) WilliamDigdy
4 Estimation of National Income by --------------------- is considered most significant.

(a)R C Desai (b)Dadabhai Naoroji ( c)V V K R V Rao (d)WilliamDigdy

5 First official census in India was conducted in :

(a) 1871 (b) 1881 ( c) 1891 (d) 1981

6 Demography is related to
(a) Study of infants
(b) Study of adults
(c) Study of women
(d) Study of population

7 Which of the following is not an economic infrastructure ?

(a) Energy
(b) Transportation
(c) Housing
(d) Communication

8 What is the second stage of demographic transition in India ?

(a) High birth rate and high death rate
(b) Low birth rate and low death rate
(c) High birth rate and low death rate
(d) Low birth rate and high death rate

1|Page 8 October 2021,ZIET BHUBANESWAR

9 Why is the year 1921 called the year of great divide ?
(a) Population started increasing at an alarming rate
(b) Population started increasing at an increasing rate
(c) Population started increasing
(d) None of these

10 Which of the followings is/are positive contribution of Britishers I India ?

(a) Railway (b) Monetary exchange ( c) Administrative system (d) All of these

11 Commercial farming refers to :

(a) Farming for self consumption
(b) Farming for exports
(c) Farming for selling purpose
(d) None of these

12 Social infrastructure includes :

(a) Health
(b) Housing
( c) Education
(d) All of these

13 The infant mortality rate is the number of infant deaths for every ------------- live births.
(a) 100 (b) 1000 ( c) 10,000 (d) 1,00,000

14 The objective of the Britishers to turn India a

(a) Dependent economy (b) Independent economy (c) feeder economy (d) none of
these

15 Which sector dominated Indian economy during British rule in India ?

(a) Primary sector (b) Secondary Sector ( c) Tertiary sector (d) organized sector

16 Which industry suffered a major setback during the British rule?

A)Cement
B)Iron and Steel
C)Handicraft
D)Paper
17 TheTata Iron and Steel Company was established in:-
A)1857
B)1907
C)1921
D)1951

2|Page 8 October 2021,ZIET BHUBANESWAR

18 Which of the following was not the feature of Indian agriculture on the eve of Independence?
A)High degree of uncertainty
B) Land holdings were fragmented
C)Farming was considered to be as an activity of self consumption
D)None of the above
19 What was the objective behind the growth and development of means of transport during the
British period?
A)Toindustrialise the country
B)To serve the interests of Indian company
C)To transport finished goods from England to the interiors of colonial India
D)Development of infrastructure in India
20 Occupational structure refers to:
A)Distribution of working force among the different occupations
B)Nature of different occupations
C)Size of working force in a country
D)Number of people living in a country
21 Which industry was adversely affected due to partition?
A)Silk
B)Cotton
C)Jute
D)Nylon
22 During the British rule, the condition of India’s foreign trade was:-
A)Exporter of raw material
B)Surplus on account of foreign trade was spent on war expenses
C)Importer of finished goods produced in the British industries
D)All of the above
23 Which is the following the most important infrastructure developed during the British rule?
A)Airways
B)Railways
C)Waterways
D)None of these

3|Page 8 October 2021,ZIET BHUBANESWAR

24 Which of the following was not the feature of Indian Demographic profile on the eve of
independence?
A)Death rate was low
B)Birth rate was high
C)Low life expectancy
D)High infant mortality rate
25 Which of the following does not describe the Zamindari system in India?
A)Zamindars were the owners of the land and farmers were the tillers of the soil
B)Zamindars used to pay any amount of tax to the state
C)Zamindars used to charge high amount of rent from the farmers
D)Amount of the rent was not fixed.
26 Which of the following marks the negative impact of British rule in India?
A)Developed commercial outlook of the farmers
B)Change on composition of India’s foreign trade
C)Introduction of administrative and monetary system of India
D)Commercialisation of agriculture
27 India’s jute industry suffered heavily due to………………after partition.
A)Lack of raw material
B)Famines
C)Earthquakes
D)None of these
28 What was the principal source of occupation during the British rule?
A)Agriculture
B)Mining
C)Manufacturing
D)Trade and commerce
29 More than half of India’s foreign trade was restricted to:
A)China
B)Britain
C)Korea
D)Sri Lanka

4|Page 8 October 2021,ZIET BHUBANESWAR

30 Farming which focuses on basic needs of the family is called:
(a) Stagnant farming (b) Subsistence farming
(c) Commercial farming (d) None of these
31 Decay of handicrafts was caused by:
(a) British tariff policy
(b) Competition from machine-made products
(c) Change in the patterns of demand
(d) All of these
32 On the eve of independence, India was net exporter of:
(a) Primary products (b) Industrial products
(c) Capital goods (d) All of these
33 High infant mortality is a sign of:
(a) Extreme poverty (b) Poor healthcare
(c) Both (a) and (b) (d) None of these
34 Gender-bias in the society on eve of independence was indicated by:
(a) Mortality rate (b) Literacy rate
(c) Death rate (d) Life expectancy

35 During colonial period, India's demographic profile showed:

(a) High birth rate (b) High death rate
(c) High infant mortality (d) All of these
36 During the British rule, the agricultural sector experienced stagnation mainly due to the:
(a) Land settlement systems (b) Foreign trade
(c) Infrastructure (d) Industries

37 The opening of the Suez Canal in 1869:

(a) Raised the cost of transportation between Britain and India.
(b) Intensified British control over India’s foreign trade.
(c) Reduced the cost of transportation and made access to the Indian market easier.
(d) Both (b) and (c)

5|Page 8 October 2021,ZIET BHUBANESWAR

38 Arrange the following events of India before the independence in chronological order:
(i) The opening of the Suez Canal (ii) Introduction of the railways
(iii)Second stage of demographic transition (iv) Incorporation of the Tata Iron and
Steel Company
(a) i,ii,iii,iv (b)ii,i,iv,iii (c) ii,iv,iii,i (d)iv,iii,ii,i

39 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%
40 Various details about the population of British India were first collected through a census in
.
(a) 1881 (b) 1911 (c) 1921 (d) 1951
41 On the eve of independence, the proportion of population engaged in agricultural sector was:
(a) approx. 40-50% (b) approx. 50-60%

(c) approx. 60-65% (d) approx. 70-75%

42 The economic policies pursued by the colonial government in India were concerned with the
protection and promotion of the economic interests of their home country. How did these
policies affect the Indian Economy?
(a) Higher rate of growth of industries, especially Handicraft Industries.
(b) It transformed the country into supplier of raw materials.
(c) The country became consumer of finished products from Britain.
(d) Both (b) and (c)
43 The British rule led to the collapse of India’s world famous handicraft industries.
What was its effect on Indian economy?
(a) Massive unemployment in India
(b) Increasing imports of cheap manufactured goods from Britain.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
44 In how many sectors is the occupational structure of India is divided?
(A) One
(B)Two
(C) Three
(D) Four

6|Page 8 October 2021,ZIET BHUBANESWAR

45 What is another name for the service sector?
(A)Tertiary
(B) primary
(C) secondary
(D) agriculture
46 What was the nature of the Indian economy on the eve of Independence?
(A) stagnant
(B) backward
(C) underdeveloped
(D) all of these
47 What was the life expectancy at birth in India on the eve of Independence?
(A) 44 years
(B) 50 years
(C) 60 years
(D) all of these
48 Where was the first iron and Steel company established?
(A) Kolkata
(B) Jamshedpur
(C) Patna
(D) Ranchi
49 Which of the following economist estimated per capita income during colonial period
(A) William Digby
(B) Findley Shirras
(C) Dada Bhai Naoroji
(D) All of these
50 The foundation of British Empire in India was laid by Battle of Plassey, fought in _________.
A.1758
B.1575
C.1757
D.1577
51 _____________________ of agriculture means production of crops for sale in the market rather than for
self-consumption.
A.Generalisation
B.Colonisation
C.Commercialisation
D. Surplus
52 What was the infant mortality rate during the British period?
A.218/1000
B. 88/1000
C. 200/1000
D. 160/1000
53 Among the notable estimators — Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V.
Rao and R.C. Desai — it was ………….., whose estimates during the colonial period was
considered very significant. Fill in the black with correct option given below
A. William Digby,
B. Dadabhai Naoroji,
C. Findlay Shirras
D. V. K. R. V. Rao
7|Page 8 October 2021,ZIET BHUBANESWAR
54 Suez Canal was opened in:
(a) 1867
(b) 1868
(c) 1869
(d) 1870
55 Which sector was the major contributor to GDP of the country as well as the biggest employer on
the eve of independence?
(a) Agriculture
(b) industry
(c) Services
(d) Manufacturing
56 During British period , Indian economy was
A- semi feudal economy
B -disintegrated economy
C- colonial economy
D- all of above
57 In British India the cloth industry was concentrated at
A –Ahmadabad
B – Hyderabad
C – Bengluru
D – Ghazibad
58 During the British rule, high mortality rate was due to:-
a) Inadequate public health facilities
b) Occurrence of frequent natural calamities
c) Both (a) and (b)
d) Neither (a) nor (b)
59 When did modern industry began take root in India?
A – second half of 18th century
B – first half of 20th century
C - second half of 19th century
D - first half of 19th century
60 There was a lack of which kind of industries in the colonial period?
A - consumer goods industry
B – luxury goods industry
C – capital goods industry
D – private goods industry

8|Page 8 October 2021,ZIET BHUBANESWAR

61 The impact of British policy on India economic structure was:-
a) India becomes supplier of raw materials and consumer of finished industrial products from
Britain
b) India became supplier of finished product to Britain
c) India became supplier of finished industrial products and consumer of raw materials from
Britain
d) Both B and C
62 Capital goods industries are those industries which:-
a) Helps in Production of consumers good directly
b) Helps in production of machines and tools which produce consumer goods
c) Helps in agriculture production only
d) Needs more capital
63 Under colonial dispensation the economic policies of the government were concerned with:-
a) Development of handicraft industries
b) Development of the colonized country
c) Promotion of British economic interest
d) None of these
64 The opening of Suez Canal served as a direct route for ships operating between:-
a) India and America
b) India and Britain
c) India and Srilanka
d) India and Pakistan
65 The exports surplus during the British rule was used:-
a) To make payments for expenses incurred by an office set up by the colonial government in
Britain.
b) To meet expenses on war fought by the British government.
c) To import invisible items.
d) All of these.
66 Before 1921, India was in the ______________ of demographic transition.
a) First stage
b) Second stage
c) Third stage
d) None of the above
67 High Birth Rate and Low Death Rate represents ___________ stage of demographic transition.
a) Third
b) First
c) Second
d) First and second
68 The railways affected the structure of the Indian economy in two ways-
a) Commercialization of crops
b) Indian village becomes self-sufficient.
c) Broken the geographical and cultural barriers
d) Only A and C

9|Page 8 October 2021,ZIET BHUBANESWAR

 ANSWER
1.(a) 2. (a) 3. (b) 4. ( c) 5. (b) 6. (d) 7. ( c) 8. (c) 9. ( c) 10. (d)
11. ( c) 12. (d) 13. (b) 14. ( c) 15. (a) 16- (C) 17- (B) 18- (D) 19-(C) 20-(A)

21-(C) 22- (D) 23-(B) 24-(A) 25-(B) 26-(B) 27-(A) 28-(A) 29-(B) 30-B
31-D 32-A 33-C 34-B 35-D 36-A 37-D 38-B 39-C 40-A
41-D 42-D 43-C 44-C 45-A 46-D 47-A 48-B 49-D 50-C
51-C 52-A 53-D 54-C 55-A 56-D 57-A 58-A 59-C 60-C
61-A 62-B 63-C 64-B 65-D 66-A 67-C 68-D

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10 | P a g e 8 October 2021,ZIET BHUBANESWAR

 CHAPTER-1-INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

CASE STUDY BASED QUESTIONS

1
Read the following hypothetical text and answer the given questions: -

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 woolen 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, cloths, kerosene hit the country hard with its scarcity. Ironically, this export
surplus never made its way to India.

1. The opening of Suez Canal served as a direct route for ship operating between:

a) India and America

b) India and Sri Lanka

c) India and Pakistan

d) India and Britain

2. “The export surplus was used for the welfare of Indian Industry.” a) True b) False

3. (A): India became an exporter of primary products and an importer of finished

consumer and capital goods produced in Britain.

(R): Restrictive policies of commodity production, trade and tariff structure, composition
and volume of India’s foreign trade.

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.

1|Page 8 October 2021,ZIET BHUBANESWAR

 4.Which country had the maximum control over India foreign trade during colonial
period.

a) America

b) China

c) Ceylon

d) Britain

2
Read the following hypothetical text and answer the given questions: -

The various social development indicators were also not quite encouraging. The overall
literacy level was less than 16 per cent. Out of this, the female literacy level was at a
negligible low of about seven per cent. Public health facilities were either unavailable to
large chunks of population or, when available, were highly inadequate. Consequently,
water and air-borne diseases were rampant and took a huge toll on life. No wonder, the
overall mortality rate was very high and in that, particularly, the infant mortality rate was
quite alarming—about 218 per thousand in contrast to the present infant mortality rate
of 63 per thousand. Life expectancy was also very low—44 years in contrast to the
present 66 36 years. In the absence of reliable data, it is difficult to specify the extent of
poverty at that time but there is no doubt that extensive poverty prevailed in India
during the colonial period which contributed to the worsening profile of India’s
population

1. Which year is described as a “year of Great Divide”?

a) 1931

b) 1921

c) 1941

d) 1911

2. What were the causes of higher infant motility rate during the British period?

a) Poor health care

b) Lack of education

c) Traditional outlook of society

d) All of above

3. During colonial period, India’s demographic profile showed:

a) High birth rate

b) High death rate

2|Page 8 October 2021,ZIET BHUBANESWAR

 c) High infant mortality

d) All of these

3 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 of development. The policies formulated by Britishers were only to
promote their interests, India was diverging from the path of 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
how to help the nation.
1. Indian economy was…………on the eve of Independence.
A)Developed
B)Underdeveloped
C)Backward
D)Both (B) and (C)
2. Which of the following stands true for India’s Consumption of Trade?
A)India was the net exporter of raw material.
B)India was the easy market for finished goods.
C)Both (A) and (B)
D)Neither (A) nor (B)
3. Which of the following was the contribution of Britishers in case of Social
Infrastructure in India?
A)Telegraphs and posts were introduced.
B)English was introduced as a medium of language.
C)Hospitals and medical colleges were set up.
D)New housing societies were constructed.

3|Page 8 October 2021,ZIET BHUBANESWAR

4 India has seen a long and rich history of handicrafts. Years and years of evolution and
refinement have made it possible for India to retain a coveted spot in the handicrafts
landscape of the world. Where the ancients were exemplary in their craft, the
contemporary craftsmen are adept in using the knowledge of the ancients by adding
modern craft techniques to them. They have carefully preserved this age- old art that
represents dignity, style and beauty of the Indian culture.
Voyaging through the lanes of Indian handicrafts is a tempestuous affair. There are
seen striking ups and downs throughout the late 2000s, had a grave impact on
handicrafts industry.
Despite the growth of handicraft industry in India and the measures taken by the
government to promote handicrafts, the average earning of a craftsman when compared
to that of other fields is very low. Hence, the younger generation is moving to other
fields with only the elder craftsmen being left behind. The country needs younger
generation of craftsmen to carry on the tradition of handicrafts, and this is possible by
ensuring the assistance of craftsmen to improve their techniques, availability of quality
raw materials, direct marketing channels, credit and better wages and providing them
with socio- economic benefits.
1 India had a world wide reputation of………………
A)Handicrafts
B)Landscape
C)Labour
D) None of these
2.During British rule, Indian handicrafts were discouraged by ………on their exports.
A)Higher tariff
B)Nawabs
C)Giving subsidies
D)None of these
3.To preserve handicrafts industry and to promote it, the country should encourage
younger generation of craftsmen helping them with:
A)Availability of quality raw materials
B)Better wages
C)Direct marketing channels
D)All of the above

4|Page 8 October 2021,ZIET BHUBANESWAR

5 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.
1. When did the modern industry begin to take root in India?
2. Which country had command over cotton mills?
3. Who is the founder of TISCO and when was it come into existence?
4. What was systematic by Britishers ?
6 In the second half of the 19th Century both the direct administration of India by the
British crown and the technological change ushered in by the industrial revolution had the
effect of closely intervening the Economics of India and the Great Britain in terms of
trade. Britishers through their policy of tariff discrimination ensure that they maintain
monopoly control over India's foreign trade also the British raj invested heavily in
infrastructure including canal and irrigation systems in addition to Railway’s telegraphy
road and ports.
However during the British raj the India experienced some of the major health
challenges like Cholera typhoid tuberculosis etc. The British government of United
India influenced Indian culture and social infrastructure noticeably. The most
noticeable influence is the English language which emerged as the administrative
and lingua franca of India.
Based on the above passage answer the following questions:
1. Which of the following appropriately define the tariff discrimination policy
of the British government of India:
a) Tariff free export of Indian Handicrafts.
b) Tariff free export of raw materials to Britain.
c) Tariff free imports of finished goods.
d) Both B and C.

2. Which of the following appropriately define the objective of Britishers for

making heavy investment in Indian economic infrastructure?
a) They wanted to make India a developed Colony of Britain.
b) They wanted to bring India on the path of growth and development.
c) They wanted to strengthen their administrative control over India.
d) None of the above

5|Page 8 October 2021,ZIET BHUBANESWAR

7 Despite being the occupation of such a large population on the agricultural sector
continued to experience stagnation and not infrequently unusual deterioration.
Agricultural productivity became low though, in absolute terms the sector experienced
some growth due to the expansion of the aggregate area under cultivation. This stagnation
in the agricultural sector was caused mainly because of the various system of land
settlement system that were introduced by the colonial government.
Based on the passage above answer the following questions:
1. Which of the following describes the state of Indian agriculture on the eve
of Independence?
a) lack of mechanised means of cultivation
b) output produced per hectare of land was low
c) division of land into small pieces
d) all of the above
2.Which of the following explains the concept of force the
commercialization of agriculture
a) production was done for self-consumption
b) farmers were paid to produce cash crops
c) it referred to production of crops for the sale in the market
d) farmers were forced to grow crops like wheat and rice

8 Basic infrastructure such as railways, ports, water transport, posts and telegraphs
developed under the British rule. However, the intention was not to provide amenities to
Indian population but to satisfy colonial interests. The infrastructural development during
British rule and the motives behind them were, Roads were built primarily to serve the
purposes of mobilising the army within India and drawing out raw materials from the
countryside to the nearest railway station or the port for export.Railways were
introduced in India in 1850 to assist British industries in widening the market for their
finished goods.The aim of developing postal and telegraph was to enhance the efficiency
of British administration.

a) The measures taken for developing water and air transport were
___________.(satisfactory/non satisfactory)

b) The most important contribution of the British rule was to introduce_______.

i) Roads
ii)Railways
iii) Air and water transport
iv) Telegraph service

c) Railways were introduced by the Britishers to provide a means of

transportation for the population of India as well to connect villages for their
development.(True/False)

d) Introduction of telegraph served the purpose of maintaining law and

order.(True/False)

6|Page 8 October 2021,ZIET BHUBANESWAR

9 The sole purpose of the British colonial rule in India was to reduce the country to being a
raw material supplier for Great Britain’s own rapidly expanding modern industrial base.
India was particularly well known for its handicraft industries in the fields of cotton and
silk textiles, metal and precious stone works etc. These products enjoyed a worldwide
market based on the reputation of the fine quality of material used and the high standards
of craftsmanship seen in all imports from India. The economic policies pursued by the
colonial government in India were concerned more with the protection and promotion of
the economic interests of their home country than with the development of the Indian
economy. Such policies brought about a fundamental change in the structure of the Indian
economy — transforming the country into supplier of raw materials and consumer of
finished industrial products from Britain.

1. Which of the following statements is not true?

A. The sole purpose of the British colonial rule in India was to reduce the country to
being a raw material supplier
B. Great Britain’s own rapidly expanding modern industrial base helped the Indian
economy to develop its industrial base.
C. The Indian economy transformed into a supplier of raw materials and consumer of
finished industrial products from Britain.
D. The economic policies pursued by the colonial government in India were concerned
more with the protection and promotion of the economic interests of their home country
2. British colonial rule in India brought a fundamental change in the structure of the
Indian economy. This change was:
A. India became the supplier of finished products
B. India became the importer of raw material
C. Both A and B are correct
D. Both A and B are incorrect
3. India was well known for which of the following handicraft industries?
A. Leather industry
B. Iron and steel industry
C. Metal industry
D. All of the above

10 During the colonial period, the occupational structure of India, i.e., distribution of working
persons across different industries and sectors, showed little sign of change. The
agricultural sector accounted for the largest share of the workforce, which usually
remained at a high of 70- 75 per cent while the manufacturing and the services sectors
accounted for only 10 and 15-20 per cent respectively. Another striking aspect was the
growing regional variation. Parts of the then Madras Presidency (comprising areas of the
present-day states of Tamil Nadu, Andhra Pradesh, Kerala and Karnataka), Bombay and

7|Page 8 October 2021,ZIET BHUBANESWAR

 Bengal witnessed a decline in the dependence of the workforce on the agricultural sector
with a commensurate increase in the manufacturing and the services sectors. However,
there had been an increase in the share of the workforce in agriculture during the same
time in states such as Orissa, Rajasthan and Punjab.
1.Which among the following is considered as part of the structural composition of an
economy?
A. Agriculture and related activities
B. Manufacturing
C. Services
D. All of above
2.States such as Orissa, Rajasthan and Punjab experienced an increase in the share of the
workforce in agriculture during the colonial rule because of growth of the industrial and
service sector. State true or false.

3.Development of infrastructure by the Britishers was done to develop india. State true
and false

4.The contribution made by the British in India has been totally negative. State true and
false

ANSWER

1.
1 (d) India and Britain

2 (b)False

3 (a) is correct answer

4. d) Britain

2.
1. b) 1921

2. d) All of above

3. d) All of these

3 1.D)Both (B) and (C)

2. C)Both (A) and (B)
3. B)English was introduced as a medium of language.

8|Page 8 October 2021,ZIET BHUBANESWAR

4 1. A)Handicrafts
2. A)Higher tariff

3. D)All of the above

5 1. During the second half of the nineteenth century.
2. India
3. Jamshedji Tata, 1907
4. De-industrialization
6 1. D-Both B and C.
2.C
7 1. D
2.C
8 1. Non Satisfactory

2. Railways

3. False

4. True

9 1-B

2-B

3-C

10 1-D

2-FALSE

3-FALSE

4-FALSE

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 CHAPTER-1-INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
TRUE FALSE QUESTIONS

1 The objective of the Britishers to develop transportation system in India is to develop

infrastructural base in India .
A.TRUE
B.FALSE
2 The trade policy of British in India ruined the village and cottage industries.
A.TRUE
B.FALSE
3 India experienced trade deficit during colonial rule in India .
A.TRUE
B.FALSE
4 The Jute industry in India was adversely affected due to partition of Bengal.
A.TRUE
B.FALSE
5 Zamindars were not cruel in collecting land revenue from farmers.
A.TRUE
B.FALSE

6 Dr. V.K.R.V.Rao is the economist whose estimates on GDP and per capita income during
the British rule were considered very significant. (Choose the option whether this
statement is true or false)
A)True
B)False
7 British made India into exporter of raw materials and importer of finished goods.
(Choose the option whether this statement is true or false)
A)True
B)False
8 Industrial Revolution first started in Germany.
(Choose the option whether this statement is true or false)
A)True
B)False

1|Page 8 October 2021,ZIET BHUBANESWAR

9 Suez canal was opened in 1869.
(Choose the option whether this statement is true or false)
A)True
B)False
10 Railways in India were introduced in the year 1850 and came in India in 1853 run first time
from Mumbai to Thane.
(Choose the option whether this statement is true or false)
A)True
B)False
11 India was a prosperous and wealthy economy prior to the advent of British rule.
A)True
B)False
12 The colonial rule destroyed India’s traditional handicraft industry.
A)True
B)False
13 The economic policies pursued by the colonial government in India were concerned more
with the protection and promotion of the economic interests of India.
A)True
B)False
14 India was reduced to an importer of primary products.
A)True
B)False
15 Land settlement introduced by the colonial government resulted in stagnation in the
agricultural sector.
A)True
B)False
16 The aim of developing postal and telegraph was to enhance the efficiency of British
administration.
A)True
B)False
17 Before 1921, India was in the second stage of demographic transition.
A)True
B)False

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18 British colonial rule positively affected the structure, composition, and volume of India’s
foreign trade.
A)True
B)False
19 The secondary sector accounted for only 10.1 percent of the working population on the
eve of independence.
A)True
B)False
20 The contribution of the new industrial sector to the Gross Domestic Product (GDP)
expanded significantly during British rule.
A)True
B)False

Answer

1-B 2-A 3-B 4-A 5-B 6-A 7-A 8-B 9-A 10-A
11-A 12-A 13-B 14-B 15-A 16-A 17-B 18-B 19-A 20-B

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 CHAPTER-1-INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
ASSERTION- REASON QUESTIONS

1 Read the following statements-Assertion (A) and Reason ( R ) . Choose one of the correct alternatives given
below.
Assertion (A) : The Britishers turned India a feeder economy for the industries in Britain .
Reason ( R ) :The Britishers wanted rapid industrialization 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

2 Read the following statements-Assertion (A) and Reason ( R ) . Choose one of the correct alternatives given
below.
Assertion (A) : The infant mortality rate was very high in India on the eve of independence.
Reason ( R ) :The Britishers did not develop medical facilities 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

3 Read the following statements-Assertion (A) and Reason ( R ) . Choose one of the correct alternatives given
below.
Assertion (A) : The TISCO was incorporated in 1907.
Reason ( R ) :The Britishers agreed to purchase steel from TISCO.
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
4 Read the following statements-Assertion (A) and Reason ( R ) . Choose one of the correct alternatives given
below.
Assertion (A) : The British government established a monopoly control over India’s foreign trade.
Reason ( R ) :The opening of Suez canal did not act as a determinant to promote trade with 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

1|Page 8 October 2021,ZIET BHUBANESWAR

5 Read the following statements-Assertion (A) and Reason ( R ) . Choose one of the correct alternatives given
below.
Assertion (A) : Farmers in India were forced to take up the cultivation of indigo.
Reason ( R ) : The dyeing and bleaching of textile in the textile industry of Btitain :required indigo.
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

6 Assertion(A):Year 1921 was called as year of Great Divide.

Reason(R):Prior to 1921, there was increase in India’s population growth rate whereas, it was
after 1921, India experienced fluctuations in its population growth 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.
7 Assertion(A):Indian agriculture was the primary source of employment.
Reason(R):There was under development in Indian 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.
8 Assertion(A):There was decay of Indian Handicrafts during the British Rule.
Reason(R):India was the net exporter of raw material in the world.
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.

2|Page 8 October 2021,ZIET BHUBANESWAR

9 Assertion(A)Britishers introduced English as medium of language.
Reason(R):Britishers wanted to create a class of Indians who would be Indians by blood by
britishers in their lifestyle.
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.
10 Assertion(A)During the British rule, production of cash crops improved the economic condition of
farmers.
Reason(R)Farmers were given higher price to produce cash crops.
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.
11 Assertion: Some efforts were made by the Colonial Regime to improve infrastructure facilities
in India.
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.
12 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

3|Page 8 October 2021,ZIET BHUBANESWAR

13 Assertion (A): Indian agriculture sector suffered due to partition.
Reason (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.

14 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.

(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.
15 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.

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

4|Page 8 October 2021,ZIET BHUBANESWAR

16 Assertion: Colonial government levied 0% import duty on British goods imported in
India.
Reason: Colonial government systematically destroyed Indian handicraft industry
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
17 Assertion: Agriculture was exploited through Zamindari system of Land Revenue
Reason: The Zamindars 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.
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.
18 Assertion(A):During colonial rule, India’s exports exceeded imports which resulted in a trade surplus.
Reason(R): Trade surplus was used for the development of the Indian Economy.
A. Both Assertion(A) and Reason(R) are true and Reason(R) is correct explanation of the Assertion(A).
B.Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of the
Assertion(A).
C.Assertion (A) is true but Reason (R) is false.
D.Assertion (A) is false but Reason (R) is true.
19 Assertion(A):India could not develop a sound industrial base under British Rule.
Reason(R): The colonial government reduced India to the status of a mere exporter of raw
materials to be used by upcoming industries in Britain.
A. Both Assertion(A) and Reason(R) are true and Reason(R) is correct explanation of the
Assertion(A).
B.Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of the
Assertion(A).

C. Assertion (A) is true but Reason (R) is false.

D. Assertion (A) is false but Reason (R) is true.

20 Assertion(A): India’s renowned handicraft industry was systematically destroyed due to discriminatory
tariff policies of the British Government.
Reason(R): Colonial Government imposed a heavy duty on import of finished goods from Britain.
A. Both Assertion(A) and Reason(R) are true and Reason(R) is correct explanation of the
Assertion(A).
B.Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of the
Assertion(A).

C.Assertion (A) is true but Reason (R) is false.

D.Assertion (A) is false but Reason (R) is true.

21 Assertion(A):The infrastructure facilities during British rule were highly developed.

Reason (R): The main aim motive behind infrastructural development was to serve various colonial
interests.
A. Both Assertion(A) and Reason(R) are true and Reason(R) is correct explanation of the Assertion(A).
B.Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of the
Assertion(A).
C.Assertion (A) is true but Reason (R) is false.
D.Assertion (A) is false but Reason (R) is true.

5|Page 8 October 2021,ZIET BHUBANESWAR

22 Assertion (A): During the colonial period, the occupational structure of India showed little sign of
change.
Reason (R): There was no significant economic growth recorded during colonial rule. Write the
correct answer 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 and R is is true
23 Assertion (A): Parts of the Madras Presidency, Bombay and Bengal witnessed a rise in the
dependence of the workforce on the agricultural sector during colonial rule.
Reason (R): These regions commensurate increase in the manufacturing and the services sectors.
Write the correct answer 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 and R is is true
24 Assertion (A): Under the colonial regime, basic infrastructure such as railways, ports, water
transport, posts and telegraphs did develop.
Reason (R): The real motive behind this development was not to provide basic amenities to the
people. Write the correct answer 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 and R is is true
25 (A): Zamindari (Semi Feudal Economy) in the colonial era were also responsible for the misery of
the cultivators.
(R): The terms of the revenue settlement system introduced were harsh on the Zamindars.
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

6|Page 8 October 2021,ZIET BHUBANESWAR

26 Assertion (A) The year 1921 is described as the year of the Great Divide.
Reason (R) It was from this year, the population started increasing continuously.
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
27 Assertion (A): On the eve of independence Indian economy was Stagnant economy.
Reason (R): Largest section of Indian population depended on agricultural sector for sustenance.
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 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
28 Assertion (A): India became an exporter of primary products and an importer of finished consumer
and capital goods produced in Britain.
Reason (R): 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

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 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
29 Assertion (A): Farmers were forced to produce cash crops like cotton or jute instead of
conventional crops Like rice and wheat during the British rule.
Reason (R): Agriculture was exploited through Zamindari System under the Colonial rule
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 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
30 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.

7|Page 8 October 2021,ZIET BHUBANESWAR

31 Assertion (A): India could not develop a sound industrial base under British Rule;

Reason (R): The colonial government reduced India to the status of a mere exporter of raw
materials to be used by 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 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

1.( a) 2. ( a) 3. (b) 4. (c ) 5. (a) 6-(C) 7-( A) 8- (B) 9- (A) 10- ( D)

11-A 12-A 13-A 14-A 15-D 16-A 17-A 18-C 19-A 20-C
21-D 22-A 23-A 24-C 25-A 26-B 27-B 28-A 29-B 30-B
31-A

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