Test: Indian Economy On The Eve Of Independence - 3 - Commerce MCQ

Economic infrastructure refers to the essential services and facilities that support economic activities and enhance productivity. Key components include:

• Power: Essential for manufacturing and daily operations.
• Transportation: Includes roads, railways, and ports for moving goods and people.
• Communication: Vital for information exchange and coordination.
• Banking: Provides financial services necessary for business operations.
• Irrigation: Supports agriculture by ensuring adequate water supply.

These elements collectively contribute to a robust economic framework, facilitating growth and development.

The main reason for the decline of the handicraft industry

The British Government implemented a discriminatory tariff policy that severely impacted the demand for handicraft goods. Key aspects of this policy included:

• No duty on the export of raw materials from India.
• Free import of finished goods from Britain into India.
• Heavy duties imposed on the export of Indian handicrafts.

As a result, the Indian handicraft industry faced significant decline, leading to reduced production and loss of livelihoods for many artisans.

Indian wealth was severely impacted during British rule.

During the colonial period, India's foreign trade generated a significant export surplus due to high levels of exports. However, this surplus did not result in any inflow of gold or silver into India. Instead, it was primarily used for:

• Making payments for the expenses of the colonial government.
• Covering costs related to wars fought by the British.
• Paying for various invisible items, contributing to the drain of Indian wealth.

This situation led to a detrimental effect on India's economy, as essential commodities like food grains and textiles became scarce in the domestic market.

The infant mortality rate is a crucial measure of public health. It refers to the number of deaths of infants under the age of one year.

• This rate is typically expressed per 1,000 live births.
• Thus, the correct definition is the number of deaths of infants up to the age of one year out of 1,000 newborn babies.
• High infant mortality rates indicate significant health challenges within a population.

In summary, the infant mortality rate is a vital statistic that reflects the overall health and wellbeing of infants in a given region.

Colonialism refers to the domination of a nation's people and culture by a foreign power. This control affects various aspects of life, including:

• Political - Governance and political rights are often stripped away from the local population.
• Economic - Resources are exploited for the benefit of the colonising nation, leading to economic dependency.
• Cultural - Indigenous cultures may be suppressed or altered to fit the coloniser's norms.
• Social - Social structures can be disrupted, leading to changes in community dynamics.

Colonialism is typically more subtle than imperialism, which is often more aggressive and formal in its approach.

The main interest of the zamindars was to collect rent, regardless of the economic conditions faced by the cultivators. The profits from agriculture primarily benefited the zamindars rather than the farmers. This system was not designed to support the cultivators.

Key points regarding the zamindari system:

• The zamindars focused solely on collecting rent.
• They did not invest in improving agricultural conditions.
• The economic distress of cultivators led to significant social tension.
• Revenue settlement terms pressured zamindars to meet fixed revenue dates.
• Low technology, poor irrigation, and minimal fertiliser use worsened farmers' situations.

While some areas saw higher yields of cash crops due to commercialisation, this shift often came at the expense of food crop production, which primarily served British industries.

The development of infrastructure during the colonial period included railways and roads, which improved sea lanes and inland trade. However, the postal services, while beneficial to society, remained inadequate throughout this time.

Key points regarding the postal services include:

• Despite being a useful public service, it was insufficient in meeting the needs of the population.
• Other infrastructure developments, such as railways, overshadowed the postal system.
• The focus of colonial infrastructure was often on serving colonial interests rather than the local population.

The year 1921 is significant in India's demographic history, often referred to as the Great Divide. This is because it marks the only census year where there was a decline in population growth. Key points include:

• After 1921, India experienced a continuous rise in population.
• This year highlighted the beginning of a demographic transition.
• Prior to this, the population growth was steady, but it changed dramatically post-1921.

Overall, 1921 serves as a crucial reference point for understanding India's population trends.

Decay of the handicrafts was caused by

• British tariff policy: This policy imposed high taxes on Indian goods, making them less competitive.
• Competition from manmade machines: The rise of machine-made products reduced the demand for traditional handicrafts.
• New demand patterns: Changes in consumer preferences, influenced by Western culture, led to a decline in the popularity of local handicrafts.

These factors collectively contributed to the decline of Indian handicrafts, resulting in significant unemployment and a shift in consumer demand towards imported goods.

TISCO (Tata Iron and Steel Company) was founded by Jamsetji Tata on 26^th August 1907. It has since become the seventh largest steel company in the world.

The establishment of TISCO marked a significant milestone in India's industrial history:

• The company was set up in Jamshedpur, which was named after Jamsetji Tata.
• TISCO played a crucial role in the development of the iron and steel industry in India.
• It contributed to the growth of modern industries in the country.