Consider the following statements about the Indian economy at the time of independence:
(A) The agricultural sector was saddled with surplus labour and extremely low productivity.
(B) The industrial sector needed modernisation, diversification, capacity building and increased private investment.
(C) Foreign trade was oriented to feed the Industrial Revolution in Britain.
(D) Infrastructure, including the railway network, needed upgradation, expansion and public orientation.
(E) Rampant poverty and unemployment required an export orientation of public economic policy.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (D) only
(A) The agricultural sector was saddled with surplus labour and extremely low productivity. — Correct. Agriculture had surplus labour and extremely low productivity.
(B) The industrial sector needed modernisation, diversification, capacity building and increased private investment. — Incorrect. Industry needed increased public investment, not private investment.
(C) Foreign trade was oriented to feed the Industrial Revolution in Britain. — Correct. Trade served the Industrial Revolution in Britain.
(D) Infrastructure, including the railway network, needed upgradation, expansion and public orientation. — Correct. Infrastructure needed upgradation, expansion and public orientation.
(E) Rampant poverty and unemployment required an export orientation of public economic policy. — Incorrect. Poverty and unemployment called for a welfare orientation of public policy, not an export orientation.
NCERT (2026-27): “1.9 Conclusion By the time India won its independence, the impact of the two-century long British colonial rule was already showing on all aspects of the Indian economy. The agricultural sector was already saddled with surplus labour and extremely low productivity. The industrial sector was crying for modernisation, diversification, capacity building and increased public investment. Foreign trade was oriented to feed the Industrial Revolution in Britain. Infrastructure facilities, including the famed railway network, needed upgradation, expansion and public orientation. Prevalence of rampant poverty and unemployment required welfare orientation of public economic policy. In a nutshell, the social and economic challenges before the country were enormous.” |