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 was the main source of livelihood before and after the advent of colonial rule in India?

Options:

Agriculture sector

Industrial sector

Services sector

Both 1 and 3

Correct Answer:

Agriculture sector

Explanation:

The correct answer is Option 1: Agriculture sector

Before and after the advent of colonial rule in India, agriculture was the main source of livelihood for the majority of people. Despite the decline in handicraft industries and slow progress in modern industries during the colonial period, agriculture remained the predominant sector providing employment and sustenance for the majority of the population.

The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70-75 per cent while the manufacturing and the services sectors accounted for only 10 and 15-20 per cent respectively.