Q1.

Name some notable economists who estimated India’s per capital income during
the colonial period?
Ans:  Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C.
Desai.
Q2. Name some modern industries which were in operation in our country at the time
of independence?
Ans: The Tata Iron and Steel Company (TISCO) were incorporated in 1907. Its first
plant was set up in Jamshedpur in Bihar. A few other industries in the fields of
sugar, cement, paper etc. came up after the Second World War.
Q3. What was the two-fold motive behind the systematic deindustrialisation effected
by the British in pre-independent India?
Ans: The intention was, first, to reduce India to the status of only exporter of
raw materials for the industries of Britain and second to reduce India to the
status of importer of finished goods from Britain.
Q4. Give a quantitative appraisal of India’s demographic profile during the
colonial period?
Ans: 1. literacy rate: 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.
2. Average life expectancy: life expectancy refers to the average number of years
for which people are expected to live. Life expectancy was also very low—32 years
in contrast to the present 69 years.
3. High infant mortality rate: infant mortality rate means death of children below
the age of 1 year. The infant mortality rate was about 218 per thousand in
comparison to the present infant mortality rate of 33 per thousand.
4. Health facilities: Public health facilities were either unavailable for the
large population or, when available, were highly inadequate. Consequently, water
and air-borne diseases became the killer for the human beings.  
5. High birth and death rate: there was high birth and death rate. Death rate is
high due to lack of proper availability of medical facilities. Birth rate is high
due to unawareness of family programme by the people.
Q5. Highlight the salient features of India’s pre-independence occupational
structure?
Ans: occupational structure means distribution of workforce of the country among
various sectors. On the eve of independence, agriculture sector occupied largest
share of workforce approx70-75 per cent while the manufacturing and the services
sectors accounted for only 10 and 15-20 per cent respectively. Another main aspect
was the growing regional variation. Tamil Nadu, Andhra Pradesh, Kerala and
Karnataka, Maharashtra and West Bengal witnessed a decline in the dependence of the
workforce on the agricultural sector and increase in the manufacturing and the
services sectors. However, there had been an increase in the share of workforce in
agriculture during the same time in states such as Orissa, Rajasthan and Punjab.
Q6. When was India’s first official census operation undertaken?
Ans: 1881.
Q7. Which is regarded as the defining year to mark the demographic transition from
its first to the second decisive stage?
Ans: 1921  
Q8. The traditional handicrafts industries were ruined under the British rule. Do
you agree with this view? Give reasons in support of your answer?
Ans: traditional handicrafts industries were ruined by British with their
discriminatory tariff policy. According to their policy if India would trade with
Britain then there would not be any tax and there would be high duty on export of
handicrafts industries by which India’s handicrafts demand in the international
market had been declined.
Q9. What do you understand by the drain of Indian wealth during the colonial
period?
Ans: the economic policy of the British was to snatch maximum benefit from India.
There was huge surplus from export but this entire surplus was drained by colonial
government. This was used to make payments for the expenses incurred by an office
set up by the colonial government in Britain, expenses on war fought by the British
government, and the import of invisible items, all of which led to the drain of
Indian wealth.
Q10. Explain foreign trade of pre-independence India?
Ans: India has been an important trading nation since ancient times. But the
restrictive policies of colonial government adversely affected the foreign trade.
India became an exporter of primary 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 machinery produced in the factories of
Britain. Britain maintained a monopoly control over India’s exports and imports.
As a result, more than half of India’s foreign trade was restricted to Britain
while the rest was allowed with a few other countries like China, Ceylon (Sri
Lanka) and Persia (Iran). The opening of the Suez Canal in 1869 served as a direct
route for the ships operating between india and Britain.
Q11. What objectives did the British intend to achieve through policies of
infrastructure development of india?
Ans:  during the british rule, some basic infrastructure was developed in the form
of railways, water transport, post and telegraph etc. the main motives of british
rulers were :
1. To have effective control and administration over the vast indian territory.
2. To earn profits through foreign trade.
3. To create an opportunity for profitable investment of british funds in india.
4. To mobilise army within india and carrying out raw materials through roads to
the nearest railway station or to the port to send it to Britain.
Q12. Were there any positive contributions made by the british in india? Discuss?
Ans:  1. British rule shift indian economy from barter system of exchange to
monetary system of exchange.
2. british system had an efficient administration system which are using now indian
politicians.
3. development of roads and railways provided cheap and rapid transport system.
Q13. What is per capital income?
Ans:  average income of every person is called per capital income.
Q14. What is the meaning of capital goods industries?
Ans:  capital goods industries means those industries which can produce machine,
tools etc. which are used for producing goods for consumption.
Q15. What is gross domestic product?
Ans: the market value of all the final goods and services which are produced in one
country in a year.
Q16. When were railway introduced in india?
Ans:   1850
Q17.  What are the main reasons for stagnation in agriculture sector on the eve of
independence?
Ans:  the stagnation in the agriculture sector was caused due to the following
reasons:
1. Land settlement system:  the most important reason for stagnation in agriculture
sector was the introduction of zamindari system by the colonial government. Under
this system, profits accruing out of agricultural sector went to the zamindars in
the form of lagaan. The main interest of the zamindars was only to collect lagaan
regardless of the economic condition of the cultivator. The dates for depositing
specified sums of lagan to british government were also fixed failing which the
zamindars were to lose their rights.
 
2. Commercialization of agriculture: commercialization of agriculture means
production of crops for sale in the market rather than for self-consumption. During
the british rule, farmers were given higher price for producing cash crops like
cotton or jute. However, this did not improve the economic condition of farmers
because instead of producing food crops, they were producing cash crops which were
to be ultimately used by the british industries. It resulted in shortage of food
crops. This fall in the production of food crops was responsible for frequent
famines in india.
 
3. Low level of productivity: low level of technology, lack of irrigation
facilities and negligible use of fertilisers resulted in low level of productivity.
The cultivator had neither the resources nor any incentives to invest in
agriculture.
 
4. Scarcity of investment:  india’s agriculture was facing scarcity of investment
in flood control and drainage.
 
Q18. Industrial sector on the eve of independence?
Ans:  india could not develop a sound industrial base under the colonial rule.
There are various reasons behind it.
1. De-industrialisation= british government systematically destroyed indian
handicraft industries and no modern industrial base was allowed to come up. The
primary motive of the colonial government behind this policy of systematically
deindustrialising India was two-fold. The intention was, first, to reduce India to
the status of only exporter of raw materials for the industries of Britain and
second to reduce India to the status of importer of finished goods from Britain.
 
2. Lack of capital goods industries: capital goods industries means those
industries which can produce machine, tools etc. which are used for producing goods
for consumption. During the british rule, there was hardly any capital goods
industry to promote further industrialisation in india. British rulers did not pay
any attention as they always wanted Indians to be dependent on Britain for the
supply of capital goods and heavy equipments.
 
3. Limited role of public sector:  public sector remained confined only to the
railways, power generation, communication, ports etc.
 
4. Adverse effects of decline of handicraft industry: the decline of indian
handicrafts resulted in unemployment on a mass scale. The artisans were forced to
take up agriculture for their livelihood. This increased the burden of population
on villages and over-crowding in agriculture.
 
Q19. Infrastructure conditions on the eve of independence?
Ans:  1. Railways: the british introduced the railways in india in 1850 and it is
considered as one of their most important contributions. The railways affected the
indian economy in two ways. Railways enabled people to undertake long distance
travel. It broke geographical and cultural barriers. It enhanced commercialization
of indian agriculture which adversely affected the self-sufficiency of the village
economies in india. The construction of railways led to huge economic losses to the
indian economy.
2. Roads: the roads primarily served the interests of mobilising the army and
shifting raw materials. There always remained an acute shortage of all weather
roads to reach out to rural areas during the rainy season.
3. Air and water transport:  british government took measures for developing the
water and air transport. However, their development was far from satisfactory.
Inland waterways proved to be uneconomical as in the case of the coast canal on the
Orissa coast. This canal was built at a huge cost but it failed to compete with the
railways and finally canal had to be abandoned.
4. Communication: posts and telegraphs were the most popular means of
communication. The introduction of the expensive system of electric telegraph in
india served the purpose of maintaining law and order. The postal services, despite
serving a useful public purpose remained all through inadequate.
Q20. Explain direction of foreign trade?
Ans: it refers to the countries from whom we are importing and the countries to
whom we are exporting.