Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:
The Indian economy was independent before the advent of the colonial rule. Even though agriculture was the main source of livelihood for 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. Although modern industry began to take root in India during the second half of the nineteenth century, but its progress remained really slow. There was hardly any capital goods industry to help promote industrialisation in our country. The colonial regime did make certain contributions and developments in the country in the areas like infrastructure. But the real motive behind these developments was to serve various colonial interests.
What were the motives of the British government behind the policy of systematically deindustrializing India?
Options:
To reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain
To turn India into a sprawling market for the finished products
To reduce India to the status of a mere importer of important raw materials for the upcoming modern industries in Britain
Both 1 and 2
Correct Answer:
Both 1 and 2
Explanation:
The primary motive of the colonial government behind this policy of systematically deindustrializing India was two-fold. The intention was, first, to reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain and, second, to turn India into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of Britain.