Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

Which industry got immense fame in manufacturing sector but later declined during colonial rule by British government?

Options:

Handicraft industry

Chemical industry

Iron and steel industry

Cement industry

Correct Answer:

Handicraft industry

Explanation:

Handicraft industry of India was of worldwide fame at the time Britisher's advent was seen, initially with a motive of trade. Eventually, the Britishers started exploiting the Indian resources to support the industrialization process which was going on in Europe simultaneously. They made sure that the raw material of lower price was exported to their country and import of final good was done from Europe at a higher market price. Indian economy was being destructed from both sides i.e. cheaper exports and expensive imports. Britishers framed the policies in such a way that benefited them and their country's growth, leading to decline of handicraft industry in India.