Indian Economy On The Eve Of IndependenceClass 11 Indian Economic Development NCERT Solutions
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Q1EXERCISES
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
Solution
The focus of the economic policies pursued by the colonial government in India was not the development of the Indian economy but the protection and promotion of the economic interests of their home country, Britain. The policies were designed to serve British interests and had a deeply negative impact on India.
The primary objectives of these policies were:
- To make India a supplier of raw materials: The British wanted to secure a steady supply of cheap raw materials like raw cotton, jute, indigo, and sugar for their rapidly expanding industries.
- To make India a market for finished goods: They aimed to turn India into a sprawling market for the finished industrial products manufactured in Britain.
The impacts of these policies were:
- De-industrialisation: India's world-famous handicraft industries, particularly textiles, declined as they could not compete with cheap machine-made goods from Britain. This led to widespread unemployment.
- Agricultural Stagnation: The agricultural sector remained stagnant due to exploitative land settlement systems like the zamindari system, lack of investment in technology and irrigation, and forced commercialisation of agriculture to serve British industries.
- Adverse Foreign Trade: India became an exporter of primary products and an importer of finished goods. Britain maintained a monopoly over India's trade, and the export surplus generated was not invested in India but was used to fund British administrative and war expenses, leading to a 'drain of Indian wealth'.
- Lopsided Development: Infrastructure like railways and ports was developed, but the primary motive was to facilitate the transport of raw materials and deployment of the army, not to serve the Indian people.
Q2EXERCISES
Name some notable economists who estimated India's per capita income during the colonial period.
Solution
Several notable economists made individual attempts to estimate India's national and per capita income during the colonial period. The text mentions the following estimators:
- Dadabhai Naoroji
- William Digby
- Findlay Shirras
- V.K.R.V. Rao
- R.C. Desai
Among these, the estimates made by V.K.R.V. Rao were considered to be the most significant and reliable for the colonial period.
Q3EXERCISES
What were the main causes of India's agricultural stagnation during the colonial period?
Solution
The main causes of India's agricultural stagnation during the colonial period were multifaceted and rooted in the policies of the colonial government. These causes include:
- Land Settlement Systems: The colonial government introduced various systems of land settlement, most notably the zamindari system. Under this system, the profits from agriculture went to the zamindars (landlords) instead of the cultivators. The zamindars were only interested in collecting rent and did little to improve the condition of agriculture.
- Lack of Investment: The colonial government and the zamindars did not invest in agricultural infrastructure such as terracing, flood control, drainage, or desalinisation of soil.
- Low Levels of Technology and Resources: There was a severe lack of modern technology, irrigation facilities, and negligible use of fertilisers. This kept agricultural productivity dismally low.
- Forced Commercialisation of Agriculture: Farmers were encouraged or forced to shift from cultivating food crops to producing cash crops like cotton and indigo, which were needed by British industries. This did not improve the economic condition of the farmers and often led to food shortages.
- Resource Scarcity for Cultivators: A large section of tenants, small farmers, and sharecroppers lacked the resources, technology, and incentive to invest in improving agriculture.
Q4EXERCISES
Name some modern industries which were in operation in our country at the time of independence.
Solution
The development of modern industry in India was very slow and limited during the colonial period. The few modern industries that were in operation at the time of independence include:
- Cotton Textile Mills: These were mainly located in the western parts of the country like Maharashtra and Gujarat and were often dominated by Indian entrepreneurs.
- Jute Textile Mills: These were concentrated in Bengal and were predominantly owned by foreigners.
- Iron and Steel Industries: The most notable was the Tata Iron and Steel Company (TISCO), which was incorporated in 1907.
- Other Industries: A few other industries in sectors like sugar, cement, and paper also came up, particularly after the Second World War.
Q5EXERCISES
What was the two-fold motive behind the systematic deindustrialisation effected by the British in pre-independent India?
Solution
The primary motive of the colonial government behind the policy of systematically de-industrialising India was two-fold, aimed at benefiting the British economy at the expense of India's.
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To reduce India to the status of a mere exporter of important raw materials: The British wanted to secure a cheap and regular supply of raw materials like cotton, jute, and indigo for their rapidly growing modern industries back in Britain.
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To turn India into a sprawling market for the finished products: The second motive was to create a large and captive market in India for the finished goods manufactured in British factories. This ensured the continued expansion and profitability of their home industries.
Q6EXERCISES
The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of your answer.
Solution
Yes, I agree with the view that the traditional handicrafts industries were ruined under British rule. Before the advent of the British, India was renowned worldwide for its fine quality handicraft industries, especially in cotton and silk textiles, metalwork, and precious stones.
Reasons for the ruin of these industries are as follows:
- Discriminatory Policies: The colonial government pursued policies that systematically favoured British-made goods. They imposed heavy duties on the export of Indian handicrafts, making them more expensive in the international market, while allowing duty-free import of British manufactured goods into India.
- Competition from Machine-Made Goods: The cheap, mass-produced goods from British factories flooded the Indian market. The Indian artisans, with their traditional techniques, could not compete with the low prices of these goods.
- Loss of Patronage: The decline of Indian princely courts and aristocrats, who were the main patrons of handicrafts, led to a loss of demand for high-quality, artisanal products.
- De-industrialisation Policy: As part of their economic policy, the British actively discouraged local production to make India a dependent market for their finished goods and a supplier of raw materials. This process of de-industrialisation led to the collapse of the handicraft sector, causing massive unemployment and impoverishing millions of artisans.
Q7EXERCISES
What objectives did the British intend to achieve through their policies of infrastructure development in India?
Solution
The development of basic infrastructure like railways, ports, roads, and telegraphs under the colonial regime was not intended to provide basic amenities to the Indian people. Instead, the real motive was to serve various colonial interests. The main objectives were:
- Facilitating Exploitation of Resources: Roads were built primarily to draw out raw materials from the countryside to the nearest railway station or port, from where they could be shipped to Britain.
- Effective Administrative and Military Control: A robust network of roads and railways was essential for mobilising the army quickly to different parts of the country to quell rebellions and maintain control. The introduction of the electric telegraph also served the purpose of maintaining law and order.
- Expanding the Market for British Goods: Railways enabled British manufactured goods to reach the remotest parts of India, thereby expanding the market for these products and ensuring their profitability.
- Enhancing Foreign Trade for British Benefit: The development of ports and sea lanes was aimed at facilitating the export of raw materials to Britain and the import of finished goods from Britain. The opening of the Suez Canal, for instance, intensified British control over India's foreign trade.
Q8EXERCISES
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.
Solution
The industrial policy pursued by the British colonial administration was fraught with shortfalls as its primary aim was to benefit Britain, not to foster genuine industrial development in India. Some of the major shortfalls were:
- Systematic De-industrialisation: The policy led to the decline of India's world-famous handicraft industries without allowing a modern industrial base to replace them. This created massive unemployment and deprived the Indian market of locally made goods.
- Lack of Capital Goods Industries: The colonial government made no effort to promote capital goods industries (industries that produce machine tools). The absence of these industries severely limited the scope for further industrialisation in India, as the country remained dependent on Britain for machinery and equipment.
- Limited Role of the Public Sector: The public sector's operations were confined to strategic areas that served British interests, such as railways, power generation, communications, and ports. There was no public investment in core industrial sectors that could have spurred economic growth.
- Slow and Stunted Growth: The progress of modern industry was extremely slow. The development was confined to a few sectors like cotton, jute, and later, iron and steel. The overall contribution of the new industrial sector to the Gross Domestic Product (GDP) remained very small.
Q9EXERCISES
What do you understand by the drain of Indian wealth during the colonial period?
Solution
The 'drain of Indian wealth' refers to the unilateral transfer of resources and wealth from India to Britain during the colonial period, for which India received no proportionate economic return. This was a key feature of the exploitative colonial relationship.
Throughout the colonial period, India generated a large export surplus, meaning the value of its exports was much higher than the value of its imports. In a normal scenario, this surplus would have resulted in an inflow of gold or silver into India, boosting the economy. However, this did not happen.
Instead, this surplus was used to make payments for expenses incurred by Britain, which were charged to India. These payments included:
- Home Charges: Expenses for the office set up by the colonial government in London.
- War Expenses: Costs of wars fought by the British government in which India had no interest.
- Import of Invisible Items: Payments for services like shipping and banking rendered by British companies.
This systematic drain of wealth from India to Britain impoverished the country, depleted its resources, and severely hampered its potential for capital formation and economic development.
Q10EXERCISES
Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?
Solution
The year 1921 is regarded as the defining year, or the 'Year of the Great Divide', to mark the demographic transition of India from its first to the second decisive stage. Before 1921, India was in the first stage of demographic transition, characterised by high birth rates and high death rates, resulting in slow and erratic population growth. After 1921, the death rate began to decline while the birth rate remained high, leading to a steady increase in the rate of population growth.
Q11EXERCISES
Give a quantitative appraisal of India's demographic profile during the colonial period.
Solution
India's demographic profile during the colonial period was characteristic of a stagnant and underdeveloped economy. The social development indicators were highly discouraging. A quantitative appraisal reveals the following:
- Literacy Rate: The overall literacy level was extremely low, at less than 16 per cent. The condition of female literacy was even worse, at a negligible low of about 7 per cent.
- Mortality Rates: Public health facilities were either unavailable or highly inadequate, leading to rampant water and air-borne diseases. Consequently, the overall mortality rate was very high.
- Infant Mortality Rate: The infant mortality rate was particularly alarming, at about 218 deaths per thousand live births. This is in stark contrast to the present rate of 28 per thousand.
- Life Expectancy: Life expectancy at birth was also very low, at only 32 years, compared to the present 69 years.
- Poverty: Although precise data is unavailable, it is certain that extensive poverty prevailed in India during this period, contributing to the poor demographic profile.
Q12EXERCISES
Highlight the salient features of India's pre-independence occupational structure.
Solution
India's occupational structure, which refers to the distribution of the working population across different sectors, showed little change during the colonial period and reflected the economic backwardness of the country. The salient features were:
- Primacy of the Agricultural Sector: The vast majority of the workforce was engaged in agriculture. This sector accounted for the largest share, which remained at a high of 70-75 per cent.
- Stagnant Industrial and Service Sectors: In contrast to the dominance of agriculture, the manufacturing and services sectors had a very small share of the workforce. The manufacturing sector accounted for only about 10 per cent, while the services sector accounted for 15-20 per cent.
- Growing Regional Variation: There were notable regional differences. While parts of the Madras Presidency (present-day Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka), Bombay, and Bengal witnessed a decline in the workforce's dependence on agriculture and a corresponding increase in manufacturing and services, other states like Orissa, Rajasthan, and Punjab saw an increase in the share of the agricultural workforce.
Q13EXERCISES
Underscore some of India's most crucial economic challenges at the time of independence.
Solution
At the time of independence in 1947, India faced enormous and crucial economic challenges, a direct consequence of nearly two centuries of colonial rule. Some of the most significant challenges were:
- Stagnant Agricultural Sector: The agricultural sector was burdened with surplus labour, extremely low productivity, and outdated technology. It was in desperate need of land reforms and investment.
- Weak Industrial Base: The industrial sector was underdeveloped and lacked diversification. There was a crying need for modernisation, capacity building, and increased public investment, especially in capital goods industries.
- Reorientation of Foreign Trade: India's foreign trade was oriented to serve the needs of the British economy. The challenge was to reorient it towards promoting India's own development.
- Inadequate Infrastructure: The existing infrastructure, including the railway network, was insufficient and needed significant upgradation, expansion, and a public orientation to serve the needs of the Indian people rather than colonial interests.
- Rampant Poverty and Unemployment: Widespread poverty and unemployment were major challenges. Public economic policy had to be welfare-oriented to address these issues and improve the standard of living of the masses.
Q14EXERCISES
When was India's first official census operation undertaken?
Solution
According to the chapter, the first official census operation in British India, through which various details about the population were collected, was undertaken in the year 1881. Subsequently, such census operations were carried out every ten years.
Q15EXERCISES
Indicate the volume and direction of trade at the time of independence.
Solution
The structure, composition, and volume of India's foreign trade were adversely affected by the restrictive policies of the colonial government. At the time of independence, the key features were:
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Composition of Trade: India became an exporter of primary products and an importer of finished goods. It exported raw materials like raw silk, cotton, wool, sugar, indigo, and jute. In return, it imported finished consumer goods like cotton, silk, and woollen clothes, and capital goods like light machinery from Britain.
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Direction of Trade: Britain maintained a monopoly control over India's foreign trade.
- More than half of India's foreign trade was restricted to Britain.
- The rest of the trade was allowed with only a few other countries like China, Ceylon (Sri Lanka), and Persia (Iran).
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Volume of Trade and Export Surplus: A defining characteristic was the generation of a large export surplus. However, this surplus did not benefit the Indian economy. Instead, it was used to finance Britain's administrative and war expenses, leading to a drain of wealth from India. The opening of the Suez Canal in 1869 had further intensified British control and likely increased the volume of trade by reducing transportation costs and time between India and Britain.
Q16EXERCISES
Were there any positive contributions made by the British in India? Discuss.
Solution
While the overall impact of British rule on the Indian economy was largely negative and exploitative, it is possible to identify some contributions that, intentionally or unintentionally, had positive effects. However, it is crucial to note that the primary motive behind these developments was always to serve British colonial interests.
Some of these contributions include:
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Introduction of Railways: The railways are often considered the most significant British contribution. They helped in breaking geographical and cultural barriers by enabling people to undertake long-distance travel. They also facilitated the transport of goods, which had economic implications. However, the negative side was that they fostered the commercialisation of agriculture for British benefit and aided the economic exploitation of India's resources.
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Development of Infrastructure: The British developed roads, ports, and sea lanes. While the main purpose was military mobilisation and transport of raw materials, this infrastructure provided a foundation upon which independent India could build.
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Posts and Telegraph System: The introduction of the postal and telegraph systems served a useful public purpose and helped in connecting the vast country, even though their primary use for the British was to maintain law and order and improve administrative efficiency.
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Political and Administrative Unity: The British administration, through its network of transportation and communication, brought a degree of political and administrative unity to the subcontinent. This framework of a unified administrative system was inherited by the government of independent India.
In conclusion, while there were some developments in infrastructure and administration, these were by-products of the colonial agenda. The social benefits gained by Indians were far outweighed by the immense economic loss and exploitation the country suffered.