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Home/Practice questions/Economics
EconomicsIndian Economic Development: Indian Economy on the Eve of Independence

What effects did the development of the railways have on Indian socie…

The Indian economy was independent before the advent of the colonial rule. Even though agriculture was the main source of livelihood for the majority of people, the country’s economy was characterised by various kinds of manufacturing activities. India was particularly well known for its handicraft industries. Under colonial rule, the country’s world famous handicraft industries declined. Modern industry began to take root in India during the second half of the nineteenth century, but its progress remained very slow. There was hardly any capital goods industry to help promote industrialisation in the country. The colonial regime did make certain contributions in areas like infrastructure. But the real motive behind these developments was to serve various colonial interests.

What effects did the development of the railways have on Indian society and the economy?

Answer & explanation+

Correct answer: option 4

The correct answer is Option (4) → All of the above

The railways let people travel long distances and break barriers. They also fostered commercialisation of agriculture, and the volume of exports expanded, though its benefits rarely reached the Indian people.

Option (1) Breaking of geographical and cultural barriers — Correct statement, but it is only one of the correct points, so on its own it is not the answer. Long distance travel broke these barriers.

Option (2) Commercialisation of Indian agriculture — Correct statement, but it is only one of the correct points, so on its own it is not the answer. The railways fostered commercialisation, which hurt village self-sufficiency.

Option (3) Expansion of exports — Correct statement, but it is only one of the correct points, so on its own it is not the answer. The volume of exports undoubtedly expanded.

NCERT (2026-27): “1.8 Infrastructure … The British introduced the railways in India in 1850 and it is considered as one of their most important contributions. The railways affected the structure of the Indian economy in two important ways. On the one hand it enabled people to undertake long distance travel and thereby break geographical and cultural barriers while, on the other hand, it fostered commercialisation of Indian agriculture which adversely affected the self-sufficiency of the village economies in India. The volume of India’s exports undoubtedly expanded but its benefits rarely accrued to the Indian people. …”

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