Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

What was the main aim of economic policies pursued by the colonial government in India?

Options:

Development of the Indian economy

Protection and promotion of the economic interests of their home country i.e Britain

To transform India into an exporter of finished goods

To promote Indian handicrafts

Correct Answer:

Protection and promotion of the economic interests of their home country i.e Britain

Explanation:

The main aim of economic policies pursued by the colonial government in India was the protection and promotion of the economic interests of their home country for which they introduced various policies including systematic de-industrialization policy. 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 their home country — Britain. Thus, it can be seen that each and every policy introduced in the country was in the economic interest of their home country.