The Indian economy on the Eve of Independence

There are several conditions in the Indian economy on the eve of Independence. The economic condition of India during British rule was pathetic. India had a decline in all the sectors during that time. Before British rule, the conditions of the Indian economy were in a good state, it had a flourishing market of handicrafts, textile, etc., and most people before British rule depended on the agricultural sector and everything was balanced equally. But the Indian economy on the eve of independence declined, this was due to the unbalanced growth of each sector as well as the problems in each sector. The conditions of the Indian economy on the eve of Independence are based on the Agricultural sector, Foreign Trade Sector, Industrial Sector, Occupational Sector, and Demographic Conditions. 

MCQs

1. Mention the Indian economy’s nature on the eve of independence.

1. 1. Underdeveloped

   2. Backward

   3. Stagnant

   4. All of the above

Ans: D) All of the above

Explanation: The natures of the Indian economy on the eve of independence were Underdeveloped, stagnant, backward, and in very bad condition. 

2. What was the principal source of the Indian economy on the eve of independence?

1. 1. Foreign Trade Sector

   2. Agricultural Sector

   3. Industrial Sector

   4. All of the above

Ans: B) Agricultural Sector

Explanation: In the economy of India on the eve of Independence, agriculture was the principal source of occupation, with a percentage of 72.7% of people involved in it.

3. What is the other name for the tertiary sector?

1. 1. Service sector

   2. Agricultural sector

   3. Industrial Sector

   4. Foreign Sector

Ans: a) Service Sector

Explanation: Service sector is also known as a tertiary sector because apart from the production of the product, the service sector also provides services maintenance, consulting, and training. 

4. Which sector was expanded by the British raj to improve the market size for the goods of the British?

1. 1. Airways

   2. Railways

   3. Roadways

   4. All of the above

Ans: A) Railways

Explanation: The British developed the railways on the eve of Independence to improve the market size for the goods of the British. This was mainly done for transporting cotton and other commodities from India in an easily accessible way.

5. What led to the poor agricultural production that affected the Indian economy during the eve of Independence?

1. 1. Drought during that time.

   2. Britishers did not introduce modern technologies or irrigational equipment or fertilizers for agricultural practices.

   3. Tsunami during the eve of Independence.

   4. Britishers did not have enough agriculture knowledge.

Ans: B) Britishers did not use proper technologies or irrigational equipment or fertilizers for agricultural practices.

Explanation: Britishers depended highly on the monsoon showers for irrigation purposes; they did not even use the technologies, and fertilizers for the production of crops as a result the agricultural production during the eve of Independence affected the Indian economy.

6. Percentage of the working population involved in the service sector or tertiary sector is:

1. 1. 12.7%

   2. 7.2%

   3. 17.2%

   4. 18%

Ans: C) 17.2%

Explanation: Most of the working populations were involved in the agricultural sector during the eve of Independence i.e. 72.7% whereas in the service sector 17.2% of the population were engaged, which led to the gradual decline of the Indian economy on the eve of independence.

7. What was the land settlement system introduced by the British Government in India?

1. 1. Zamindari System

   2. Dowry System

   3. Panchayati Raj system

   4. All of the above

Ans: A) Zamindari System

Explanation: Several systems were introduced by the British government on land settlement such as the Zamindari system. In the Zamindari system, the profits that were from the agricultural sectors went directly to the Zamindars and not to the cultivators.     

8. In which year does the first official census in India take place during the British Raj?

1. 1. 1860

   2. 1885

   3. 1881

   4. 1981

Ans: 1881

Explanation: The first official census in India took place on 17th February 1881 by the census commissioner of this country. Since that year the census in India has been taking place uninterruptedly one time every 10 years.

9. How was the economy of India before British rule?

1. 1. Before the rule of the British, the livelihood of Indians was mainly based on the agricultural sector.

   2. Before British rule, the Indian economy was an independent economy and India had a flourishing market.

   3. The handicrafts of India, metallic work and textile industries had the market all over the world.

   4. All of the above

 Ans: D) All of the above

Explanation: Before the control of the British over the Indian economy, the economy of India was in a stable state and had an agricultural-based livelihood. The market of handicrafts, textile, and metallic work has a worldwide market.

10. Who was the remarkable person who took the action for calculating the national income of India before Independence.

1. 1. Surendra Nath Banerjee

   2. Jawaharlal Nehru

   3. Mahatma Gandhi

   4. Dadabhai Naoroji

Ans: D) Dadabhai Naoroji

Explanation: Dadabhai Naoroji was the first to take the initiative for calculating the national income of India on the eve of Independence.

11. What were the conditions that were responsible for the decline of the Indian economy on the eve of Independence?

1. 1. Agricultural Sector

   2. Industrial Sector

   3. Foreign Trade Sector

   4. Occupational Structures

   5. Demographic Conditions

   6. All of the above

Ans: 6) All of the above

Explanation: The conditions that were responsible for the decline of the Indian economy on the eve of independence were the agricultural sector, industrial sector, foreign trade sector, occupational structures, and demographics conditions were all responsible.

12. Why the sector of foreign trade was in a bad condition under the Indian economy on the eve of independence.

1. 1. British had no revenues for the export and Import.

   2. British restricted a large part of exports and imports from India only to Britain.

   3. The surplus profits that were made out of foreign trade were solely divided among administrators and were spent in wars as well.

   4. Both options b) and c)

Ans:  D) Both options b) and c)

Explanation: The economic condition of the foreign trade sector was really bad during the eve of independence due to large restrictions on exports and imports from the other countries except for Britain and the surplus profit that was made out of foreign trade were solely distributed among administrators and the rest were spent in war expenses.

13. Why was there an unbalanced economic growth on the eve of Independence?

1. 1. In the industrial sector, 10.2% of the working population were involved.

   2. In the agricultural sector, 72.7% of the working population was involved, it was the principal sector of occupation during that time.

   3. In tertiary or service sectors only 17.2% of working populations were involved.

   4. All of the above

Ans: D) All of the above

Explanation: On the eve of independence there was an unbalanced economic growth which resulted from the distribution of occupation among the working population of India at the eve of Independence.

14. Mention the correct statement about the industrial sector in the Indian economy on the eve of Independence.

1. 1. Exporting of raw materials to Britain was reduced by India.

   2. India had to face the ultimate shortage of goods which were produced in the country itself.

   3. Reduced the rate of growth of the industrial sector in India.

   4. The goods in India that were imported by Britain were of cheap quality.

Ans: B) India had to face the ultimate shortage of goods which were produced in the country itself.

Explanation: There was a decline in the Indian economy on the eve of independence because during that time India had to face the ultimate shortage of goods that were produced or made in the country.

15. On the eve of Independence what was the actual growth rate of the per capita income?

1. 1. 0.28%

   2. 0.7%

   3. 0.5%

   4. 1.8%

Ans: C) 0.5%

Explanation: 0.5% was the growth rate of per capita income during the eve of independence.

16. What showed the economic and social backwardness of the country on the eve of independence?

1. 1. The low survival rate of the country’s population.

   2. The life expectancy rate was 32 years.

   3. The literacy rate of the country on the eve of Independence was 16% only.

   4. All of the above.

Ans: D) All of the above.

Explanation: 16% was the literacy rate during the eve of Independence because of lack of awareness among the people of India about literacy and the British government neglected this part during the eve of independence and slowly increased to 74.04% in the year 2011.

17. On the eve of Independence why was there a high mortality rate?

1. 1. Public health facilities provided by the British Government were poor.

   2. The Occurrence of natural calamities was high during that time.

   3. The literacy rate was 16%

   4. Both options a) and b)

Ans: D) Both options a) and b)

Explanation: High mortality rate was due to the poor health condition during the eve of Independence because for the majority of people there were no proper facilities for public health which resulted in the extensive spreading of air and water-borne diseases.