Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 7 Indian Economy on the Eve of Independence Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.
Indian Economy on the Eve of Independence NCERT Solutions for Class 12 Economics Chapter 7
Indian Economy on the Eve of Independence Questions and Answers Class 12 Economics Chapter 7
Question 1.
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
Answer:
The focus of the economic policies pursued by the colonial government in India was concerned more with the protection and promotion of the economic interests of their home country rather than the development of the Indian economy.
The impacts of the policies pursued by the colonial government are stated below:
- India became the net supplier of raw materials and consumer of finished industrial products from Britain.
- India’s traditional handicraft industry was destroyed.
- The growth of India’s aggregate real output was less than two percent during the first half of the twentieth century.
- Agricultural and industrial sectors remained backward and unproductive.
Question 2.
Name some notable economists who estimated India’s per capita income during the colonial period.
Answer:
Notable economists who estimated India’s per capita income (PCI) during the colonial period were Dadabhai Naroji, William Digby, Findlay Shiras, V.K.R.V. Rao and R.C, Desai, Among them, V.K.R.V. Rao’s role is considered very significant in estimating India’s GDP during that time.
Question 3.
What are the main causes of India’s agriculture stagnation during the colonial period?
Answer:
The main causes of India’s agriculture stagnation during the colonial period were:
(i) Land Settlement and Revenue System: The land settlement system introduced by the colonial government, particularly the Zomindari System, caused immense misery among the cultivators of land, Their economic conditions deteriorated as the profit accruing out of the agriculture ; sector went to the zamindars instead of the cultivators. The zamindars did nothing to improve ; the condition of agriculture.
(ii) Commercialisation of Agriculture: Farmers were forced to grow cash crops such as cotton, indigo, etc. instead of food crops. Cash crops were mainly produced to meet the colonial interests. Commercialisation of agriculture increased the burden of revenue on farmers. It also led to shortage of foodgrains in the country. ;
(iii) Other Causes: Factors such as low level of technology, lack of irrigation facilities and the use of negligible amount of fertilisers further worsened the conditions of farmers and contributed to such low level of agricultural productivity.
Question 4.
Name some modern industries which were in operation in our country at the time of independence.
Answer:
The cotton and jute textile mills, iron and steel industries, sugar, cement and paper industries were some modern industries, which were in operation in our country at the time of independence.
Question 5.
What was the two-fold motive behind the systematic de-industrialising effected by the British in pre-independent India?
Answer:
As the agriculture and manufacturing lagged, India could not develop a sound industrial base under the colonial rule. Even as the country’s world famous handicraft industries declined. No corresponding! modern industrial base was allowed to come up and enjoy the benefits of the former. The primary motive of the colonial government behind this policy of systematically de-industrializing India was two-fold.
The intention was, first, to reduce India to the status of a mere exporter of important raw materials for Britain’s upcoming modern industries and second, to turn India into a spreading market for the finished products of those industries. This was to ensure their continued expansion to the maximum advantage of their home country, Britain.
Question 6.
The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of your answer.
Answer:
Traditional handicraft industries got a set-back during British period. The main reasons were the following:
- The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their mother country than with the development of the Indian economy.
- During British period, Indian economy was transformed into a mere supplier of raw materials and consumer of the finished industrial products from Britain.
Question 7.
What objectives did the British intend to achieve through their policies of infrastructure development in India?
Answer:
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 are mentioned below:
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.
Question 8.
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.
Answer:
Following were some of the shortfalls of the industrial policy pursued by the British colonial administration:
- Decline of the indigenous handicraft industries
- Slow progress of modern industries
- Absence of capital goods industry
- Slow growth rate of industrial sector
- Contribution of industrial sector to the GDP remained very small
Question 9.
What do you understand by the drain of Indian wealth during the colonial period?
Answer:
India had been an important trading nation since ancient times. The colonial government pursued the restrictive policies of commodity production, trade and tariff, which adversely affected the structure, composition and volume of India’s foreign trade. As a result, India became the net exporter of primary products and an importer of finished consumer and capital goods.
Although India’s foreign trade is characterised by a large export surplus during the colonial period, the surplus came at huge cost to the India’s economy. The export surplus did not result in any flow of gold or silver into India. Rather, this was used to make payments for the expenses incurred by the office set up by the colonial government in Britain, expenses on war, and the import of invisible items. All these led to the drain of Indian wealth during the colonial period.
Question 10.
Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?
Answer:
1921 is regarded as the defining year to mark the demographic transition from its first to the second decisive stage. However, neither the total population of India nor the rate of population growth at this stage was very high.
Question 11.
Give a quantitative appraisal of India’s demographic profile during the colonial period.
Answer:
Population growth had increased at a fast rate after 1921. On the eve of independence, population was increasing and the economy was firmly in a ‘Vicious Circle of Poverty’. The overall literacy level was less than 16 per cent and the female literacy was less than 7 per cent. Infant mortality rate was quite alarming at about 218 per thousand in comparison with the present infant mortality rate of 63 per thousand. Life expectancy was only 32 years in contrast to the present 63 years, Extensive poverty prevailed in India on the eve of independence. The first official census operation ; was exercised in 1881.
Question 12.
Highlight the salient features of India’s pre-independence occupational structure.
Answer:
Following are the salient features of India’s preindependence occupational structure:
- The distribution of working persons across different industries and sectors showed little sign of change during the colonial rule.
- The largest share of workforce (i.e. 72.7 percent) was engaged in primary sector.
- The secondary and tertiary sectors accounted for 10.1 and 17.2 per cent of working population respectively on the eve of independence.
- There were growing regional variation. Parts of Madras Presidency, Bombay and Bengal witnessed a decline in the share of workforce dependent on agricultural sector and increase in the share of workforce in the manufacturing .and services sectors. On the other hand, in states such as Orissa, Rajasthan and Punjab, there had been an increase in the share of workforce dependent on agriculture during the same period.
Question 13.
Underscore some of India’s most crucial economic challenges at the time of independence.
Answer:
At the time of independence, economic challenges before the country were enormous.
(i) British rule used Indian agricultural sector to satisfy their interests. As a result, agricultural productivity was extremely low at the time of independence. There was lack of investment and labour was surplus. Also, the social and economic conditions of farmers were very poor.
(ii) As the country’s world famous handicraft industries declined, no corresponding modern industrial base was allowed to come up and enjoy the benefits of the former. There was a serious need for modernisation, diversification, capacity building and increase of public investment in industrial sector.
(iii) Basic infrastructure was developed during British rule, but to satisfy colonial interests. There was a need to upgrade and expand the existing railway network.
(iv) The level of poverty and unemployment was very high. There was a need for welfare orientation of public economic policy.
Question 14.
When was India’s first official census operation undertaken?
Answer:
India’s first official census was undertaken in 1881. In the independent India, it was undertaken in 1951.
Question 15.
Indicate the volume and direction of trade at the time of Independence.
Answer:
India has been an important trading nation since ancient times. But the restrictive policies of commodity production, and trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s foreign trade.
Consequently, 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 light 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.
Question 16.
Were there any positive contributions made by the British in India? Discuss.
Answer:
Although the primary intention of the British policies was to benefit their colonial interest, it did have some positive impact on Indian economy. These positive impacts are discussed below:
- Introduction of railways enabled people to undertake long distance travels and hence, break geographical and cultural barriers
- Commercialisation of agriculture widened the scope of primary sector activities.
- Postal and telegraphs services introduced by the British serve the public of the country even today.