Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

Which sector of the economy experienced limited growth and had small contribution to the Gross Domestic Product (GDP) during the colonial period?

Options:

Agriculture

Handicraft industries

Modern industrial sector

None of the above

Correct Answer:

Modern industrial sector

Explanation:

Overall, the growth of modern industry in India during colonial period was relatively slow, with a focus on cotton, jute, iron, and steel industries, followed by other sectors in the post-war era. However, the development of a capital goods industry, which produces machinery and tools for further industrialization, was severely lacking in India. The establishment of a few scattered manufacturing units was insufficient to compensate for the significant decline in the country's traditional handicraft industries. Additionally, the growth rate of the new industrial sector and its contribution to the Gross Domestic Product (GDP) or Gross Value Added (GVA) remained quite small. Another notable limitation of the new industrial sector was the limited scope of the public sector's involvement.