Indian Economy on the Eve of Independence Class 11 Economics Notes and Questions

Please refer to Indian Economy on the Eve of Independence Class 11 Economics notes and questions with solutions below. These revision notes and important examination questions have been prepared based on the latest Economics books for Class 11. You can go through the questions and solutions below which will help you to get better marks in your examinations.

Class 11 Economics Indian Economy on the Eve of Independence Notes and Questions

Learning objectives
1 Introduction
2 Low level of economic development under the colonial rule
3 Agricultural Sectors
4 Industrial sectors
5 Foreign sectors
6 Demographic conditions
7 Occupational Structures
8 Infrastructures
9 State of Indian economy on the eve of independence
10 Positive contribution of British rule

Question. What was the condition of agriculture sector at the time of Independence?
Ans : 1. Low level of agricultural productivity :-
Agricultural productivity became very low and this stagnation in agriculture sector was mainly due to systems of land settlement that were introduced by the British Government. The Zamindari system, the profit accuring out of the agriculture sector went to Zamindaris instead of the cultivators. This lead to discouragement amongst the cultivators to produce less.
2. High dependence on Monsoon :-
Agriculture sector was mainly dependent on monsoon. No effort was ever made under the British rule to develop permanent means of irrigation.
3. Lack of Proper Input:-
Low level of technology, lack of irrigation facility and negligible use of fertilizers, added to aggravate the plight of the farmers and contributed to the dismal level of agricultural productivity.

Question. What was the condition of Industrial sector at the time of Independence?
Ans :- i) Discriminatory Tariff Policy :-
The British Government allowed tariff free export of raw materials from India and tariff free import of British industrial products into India. But a heavy duty on the export of Indian handicrafts products. It leads to decay of handicrafts industry in India.
(ii) Competition from machine :-
Industrial revolution in Britain gave a stiff competition to the handicraft industries in India. Due to low cost and better quality product produced by machine forced the Indian craftsmen to shut down the handicraft Industry in India.
(iii) New Patterns of Demand :-
Owing to British rule in India, a new class of people emerged in India. This changed the pattern of demand in India against the Indian products and in favour of British products. As a result, the Indian Industry tended to Perish
(iv) More market for British Goods :-
An introduction of railways facilitated the transportation of the British products to different parts of the country. As a result, the size of the market for the low cost British product expanded while it started shrinking for the high cost Indian products. This lead to decay of Industry in India.

Question. What was the condition of foreign trade under the British rule ?
Ans :- i) Due to discriminative tariff policy adopted by the British Government, India became net exporter of raw materials and primary products.
On the other hand, it became net importer of finished goods reproduced by the British Industry.
(ii) Composition of exports and imports showed the backwardness of Indian economy. Exports and imports were largely restricted to Britain only due to monopoly control of India’s foreign trade.
(iii) Surplus profit made and account of foreign trade during the British rule was distributed on administrative and as well as on war expenses. It was only used to increase the pursuits of the British Government.

Question. Mention the demographic profile during the British rule.
Ans :- 1) High birth and High death rate implied low survival rate, which was nearly 8 per thousand per annum.
2) Life expectancy was as low as 32 years which shows the lack of health care facilities, lack of awareness as well as lack of means for health care.
3) Literacy rate was as low as 16 percent, which reflects the social and economic backwardness of the country.

Question. Mention the condition of occupation structure at the time Independence.
Ans :- (i) Agriculture was the principal source of occupation and about 72.7 percent of working population was engaged in agriculture.
(ii) Only 10.1% of the working population were engaged in the manufacturing sector, which showed the backwardness of Indian Industry at the time of Independence.
(iii)only 17.2 percent of the working population were engaged in the service sector, which also proved the slow growth of tertiary sector at the time of Independence.
(iv) There was an unbalanced growth of Indian economy at the time of Independence

Question. What was the condition of Infrastructure at the time of Independence.
Ans :- 1) There was some infrastructural development during the British in the area of transport and communication.
2) Introduction of railways, was a major break through followed by the development of some ports and the construction of some roads.
3) But the main motive of the British government was to foster the interest of the British Government rather than to accelerate the growth of Indian economy.
4) There was transition from barter system of exchange to monetary system of exchange, which facilitated division of labour & large scale production.

1. The traditional handicrafts industries were ruined under the British rule.” Do you agree with this view? Give reasons in support of your answer.
Ans: India was well-known for its handcraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. These products enjoyed a worldwide market because of (1) reputation of the fine quality of material used and; (2) high standards of craftsmanship seen in all imports from India.
However, during the British rule, the country’s world famous handicraft industries were ruined, which not only created massive unemployment in India but also a new demand in the Indian consumer market-increasing imports of cheap manufactured goods for Britain.
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2. Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.
Ans: 1) De-industrialization
2) Adverse effects of decline of Handicraft Industries
3) Lack of Capital Industries
4) Limited Role of Public Sector

3. “There was huge ‘Drain of Wealth’ during British rule. ”Do you agree with the given statement?
Ans: Yes, I agree with the given statement. During the British rule, India became an exporter of primary products and there was huge export surplus due to excess exports. However, this export surplus, that is wealth was used:
• To make payments for expenses incurred by an office setup by colonial government in Britain.
• To meet expenses on war fought by the British government.
• To import invisible items.

4 “Indian agricultural did not suffer due to partition.” Defend or Refute?
Ans: The given statement is refuted. India’s agricultural production received a set back due to the countries partition at the time of independence.
• A sizable portion of undivided country’s highly irrigated and fertile land went to Pakistan.
• Almost, the whole of jute producing area became part of East Pakistan. India’s jute goods industry, which had enjoyed a world monopoly, suffered heavily for Lack of raw material.

5. Underscore some of India’s most crucial economic challenges at the time of independence.
Ans: Some of India’s most crucial economic challenges at the time of independence work.
• Increasing dependence of population on agriculture.
• Traditional methods of cultivation.
• Inadequate industrialization.
• Destruction of Indian handicrafts.
• High level of unemployment and underemployment.
• High infant mortality rate, Low life expectancy and literacy rate.
• Worldwide mass poverty.

6. Indicate the volume and direction of trade at the time of independence.
Ans: The volume and direction of trade at the time of independence is discussed as under.
• Exporter of primary products and importer of finished goods.
• Monopoly control of British rule.

7. What was the real motive of the British behind industrial development in India?
Ans: The real motive of the British behind infrastructure development in India was to sub serve various colonial interests and not to provide basic amenities to the people.

8. “During the British colonial rule, despite being the occupation of about 85% of India’s population, the agriculture sector continued to experience stagnation and not in infrequently unusual deterioration. Agriculture productivity became low.”
Do you agree with the above statement? Give valid reason in support of your answer.
Answer: The given statement is correct.
During the British colonial rule India’s agricultural sector continue to experience stagnation agricultural productivity became Low though, in absolute terms, the agricultural sector experience some growth due to the expansion of the aggregate area under cultivation. The main cause of India’s agricultural stagnation and low productivity are:
• Various system of land settlement introduced by colonial government, particularly the zamindari system.
• Low levels of technology, lack of irrigation facility and negligible use of fertilizers.
• Absence of adequate infrastructure.
• Even commercialization of agricultural couldn’t help farmers in improving their economic condition.

9.“India’s could not develop a sound industrial base under the British colonial rule. Even as the country’s world famous handicraft industries declined, no corresponding modern industrial base was allowed to come up to take pride of place so long enjoyed by the farmer.”
In the light of the above statement, critically appraise some of the shortfalls of the industrial policy pursued by the British Colonial Administration.
Answer: Some shortfalls of the industrial policy pursued by the British Colonial Administration are as follows.
• Industrial development remained very slow.
• There was hardly any capital goods industry to help.
• Low growth rate.
• Very limited area of operation of the public sector.

10. “Under the colonial regime, basic infrastructure such as railways, ports, water transport, posts and telegraph develop. However, the real motive behind infrastructure development was not to provide basic amenities to the people but to serve various colonial interests.”
What objectives did the British intend to achieve through their policies of infrastructure developed in India?
Answer:
• The roads that were build primarily served the purposes of mobilising the Army within India and drawing out raw materials from the country side to the nearest railway station or the port to send these to England or other foreign destinations.
• The introduction of railways by the British in 1850 fostered commercialization of Indian agriculture which adversely affected the self sufficiency of the village economies in India.
• The inland waterways, at times, proved uneconomical, as in the case of the coast canal on the Orissa coast, which had to be ultimately abandoned.
• The introduction of the expensive system of electric telegraph in India served the purpose of maintaining law and order by the British colonial government.
• The Postal services, despite serving a useful public purpose, reminded all through inadequate.

11.“The social and economic challenges before India at the time of independence were enormous.”
Do you agree with the statement? Give reasons.
Answer: The given statement is correct.
• Low level of economic growth and development.
• Cultural sector was already saddled with surplus labour . And extremely low productivity.
• The industrial sector was crying for modernization, diversification, capacity building and increased public investment.
• Foreign trade was oriented to feed the Industrial Revolution in Britain. Britain maintained a monopoly control over India’s exports and imports.
• Infrastructure facilities such as railway network, roads, water transport, post and Telegraph etc. Needed upgradation expansion and public orientation.
• Prevalence of rampant poverty and unemployment required welfare orientation. Of public economic policy.

12. Do you agree with the view That zameendar system brought. Stability to cultivation during the British rule in India. Give reason for your answer.
Answer: The zamindari system during the British rule did not bring stability. Instead, it brought instability to Indian cultivation due to the following reasons.
• This system led to frequent ejection of the tillers of the soil. They lost their permanent rights of cultivation and accordingly lost permanent interest in cultivation.
• Under zamindari system, the tillers of the soil lacked ownership rights. As a result, they had no interest in improving the agriculture

1.what was the growth rate of GDP during British Rule?
A) 2%
B) 3%
C) 4%
D) 5%

2.What was the growth rate of per capita income during British rule?
A) 2%
B) 3%
C) 4%
D) 0.5%

3.What percentage of India lived in villages at the time of independence?
A) 80%
B) 70%
C) 85%
D) 75%

4.What percentage of India was literate at the time of independence?
A) 12%
B) 7%
C) 40%
D) 16%

5.What percentage of India was dependent on agriculture at the time of independence?
A) 60%
B) 80%
C) 70%
D) 90%

6.When was TISCO incorporated in India?
A) 1907
B) 1850
C) 1853
D) 1921

7.When was railways introduced in India?
A) 1907
B) 1850
C) 1853
D) 1921

8. When was first census operation conducted in India?
A) 1907
B) 1881
C) 1853
D) 1941

9.Which year is regarded as defining year to mark demographic transition from one to another?
A) 1921
B) 1881
C) 1853
D) 1941

10.What was life expectancy of India at the time of independence.
A) 32 yrs
B) 52yrs
C) 63yrs
D) 28yrs

11.What was Infant Mortality rate of India at the time of Independence.
A) 214 per thousand
B) 218 per thousand
C) 216 per thousand
D) 260 per thousand

12. What was the literacy rate for women of India at the time of independence?
A) 12 %
B) 7%
C) 40%
D) 16%

13.When did the first cotton mill, jute mill, coal mine started in India.
A) 1855-60
B) 1850-55
C) 1940-45
D) 1900-1907

14.Which of the following is an Indicator of economic development in an economy?
A) Increase in National Income
B) Increase in per-capita Income
C) Increase in population
D) All the above

15.Which of the following sentences gives best description of the Indian economy during British rule.
A) India was an agrarian economy
B) India was stagnant economy
C) India was an agrarian economy with rapidly growing population in mass poverty and illiteracy.
D) India was a poor economy.

16. When British left India, it was:
A) A flourishing economy
B) Having a strong Industrial base
C) Having a strong infrastructure
D) Suffering from massive poverty.

16.When did Bengal famine take place?
A) 1927
B) 1861
C) 1943
D) 1941

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