NCERT Solutions for Class 11 Economics Indian Economic Development Chapter 1

Unit I- Indian Economy on the Eve of Independence Class 11

Chapter 1 Unit I- Indian Economy on the Eve of Independence Exercise Solutions

Next Chapter 2 : Unit I- Indian Economy 1950-1990 >>

Exercise : Solutions of Questions on Page Number : 14

Q1 :  

What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?


Answer :

The main focus of the economic policies pursued by the colonial government was to make India a mere supplier of Britain's own flourishing industrial base. The policies were concerned mainly with the fortification and advancement for their home country. The interests of the Indian economy were completely ignored. Such policies brought structural changes in the Indian economy by transforming it to a supplier of raw materials and consumer of finished products from Britain. The impacts of these policies are discussed as follows in detail;

i. Low Economic Development 

Throughout the British rule, Indian economy experienced very low level of economic development. As per some researches, Indian economy grew at even less than two percent during 1900-50. The reason for such a low level of development was that the British government was more concerned with the promotion of economic interests of their home country. Consequently, the colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton industries. These manufacturing units faced a stiff competition from the British machine made textiles and handlooms.

ii. Backwardness of Indian Agriculture

Under the colonial rule, India was basically an agrarian economy employing nearly 85% of its population. Nevertheless, the growth of the agriculture sector was meager. This was due to the prevalence of various systems of Land Settlement, particularly Zamindari system. Under this system, the zamindars (owners of land) were required to pay very high revenue (lagaan) to the British government, which they used to collect from the peasants (landless labourers, who were actually cultivating). The zamindars were mainly concerned with extracting high revenues from the peasants but never took any steps to improve the productivity of the land. Moreover, in order to feed British industries with cheap raw materials, the Indian peasants were forced to grow cash crops (such as, indigo, cotton, etc.) instead of food crops (such as, rice and wheat). This commercialisation of agriculture not only increased the burden of high revenues on the poor peasants but also led India to face shortage of food grains. Therefore, Indian agriculture remained backward and primitive.

iii. Deindustrialisation of Indian Economy

India failed to develop a sound and strong industrial base during the colonial rule. The status of industrial sector during the British rule can be well defined by the term 'systematic deindustrialisation'. The cause of deindustrialisation can be attributed to the downfall of India's handicraft industry and the cause of bleak growth of modern industry was the lack of investment. On one hand, the British government imposed heavy tariffs on the export of Indian handicraft products and on the other hand, allowed free exports of Indian raw materials to Britain and free imports of British products to India. As a result of the heavy tariffs, the Indian exports became costlier and its demand in the international market fell drastically that led to the collapse of Indian handicrafts industries. Simultaneously, the demand for the handicrafts products also fell in the domestic markets due to stiff competition from the machine made textiles of Britain. As a result, the domestic industries lacked investment and growth initiatives.

iv. Regression in Foreign Trade

During the colonial rule, the British government owned the monopoly power over India's foreign trade. The British government used the trade policy according to the interests of their home country. The exports and imports transactions were restricted only to India and Britain. On one hand, the exports from India provided the cheap raw materials to the British industries and on the other hand, India's imports from Britain provided a virgin market for Britain's products. In either ways, British industries were benefitted. Moreover, the surplus generated from t foreign trade was not invested in the Indian economy; instead it was used in administrative and war purposes by Britain to spread their colonial power.

Answer needs Correction? Click Here

Q2 :  

Name some notable economists who estimated India's per capita income during the colonial period.


Answer :

As the British government was never interested in upliftment of our country, so they never took any initiative to measure India's national and per capita income. Though some of the economists tried to estimate India's national income and per capita income during the colonial rule, but the results are mixed and conflicting. The following are some of the notable economists who were engaged in estimation of national income and per capita income:

i. Dadabhai Naroji

ii. William Digbay

iii. Findlay Shirras

iv. V.K.R.V Rao

v. R.C. Desai


Out of these, V.K.R.V Rao's estimates are considered to be significant. Most of these studies revealed that Indian economy grew at even less than two percent during 1900-50 with half per cent growth in per capita output per year.

Answer needs Correction? Click Here

Q3 :  

What were the main causes of India's agricultural stagnation during the colonial period?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q4 :  

Name some modern industries which were in operation in our country at the time of independence.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q5 :  

What was the two-fold motive behind the systematic deindustrialisation affected by the British in pre - independent India?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q6 :  

The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of your answer.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q7 :  

What objectives did the British intend to achieve through their policies of infrastructure development in India?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q8 :  

Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q9 :  

What do you understand by the drain of Indian wealth during the colonial period?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q10 :  

Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q11 :  

Give a quantitative appraisal of India's demographic profile during the colonial period.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q12 :  

Highlight the salient features of India's pre-independence occupational structure.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q13 :  

Underscore some of the India's most crucial economic challenges at the time of independence.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q14 :  

When was India's first official census operation undertaken?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q15 :  

Indicate the volume and direction of trade at the time of independence.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q16 :  

Were there any positive contributions made by the British in India? Discuss.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Next Chapter 2 : Unit I- Indian Economy 1950-1990 >>

Indian Economic Development - Economics : CBSE NCERT Exercise Solutions for Class 11th for Unit I- Indian Economy on the Eve of Independence will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

Popular Articles
Exercise
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16