Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.
Assertion (A)- India became importer of the final goods during British Rule.
Reason (R)- India became the exporter of raw materials like raw silk, indigo etc during British rule.

Options:

Both (A) and (R) are true and (R) is the correct explanation.

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) Is true but (R) is false.

(A) Is false but (R) is true.

Correct Answer:

Both (A) and (R) are true but (R) is not the correct explanation of (A).

Explanation:

During British rule India was reduced to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain. At the same time, India was turned into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of Britain. In the unfolding economic scenario, the decline of the indigenous handicraft industries created not only massive unemployment in India but also a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods. This demand was profitably met by the increasing imports of cheap manufactured goods from Britain.