For Indian nationalists the issue of economic exploitation under colonial rule was a central issue. Images of pre-colonial fabled riches of India contrasted with the poverty of British India. Modern ideas made people realise that poverty was preventable. Indian nationalists saw rapid industrialisation of the economy as the path towards both growth and social equity. Development of heavy and machine-making industries, expansion of the public sector and holding of a large cooperative sector were considered very important.

Consider the following statements regarding the impact of British industrialisation on India:

I. British industrialisation contributed to deindustrialisation in some sectors of India.

II. Traditional exports of cotton and silk manufactures from India declined because of competition from Manchester.

III. The initial impact of British industrialisation in India was a large-scale movement of people from agriculture to factories.

IV. The extensive import of cheap European manufactured goods led to the decline of many village industries.

I, II and IV only

The correct answer is Option 2: I, II and IV only.

Statement I: British industrialisation contributed to deindustrialisation in some sectors of India. Correct. British industrialisation led to the decline of traditional industries and old urban centres in India instead of promoting industrial growth in all sectors.

Statement II: Traditional exports of cotton and silk manufactures from India declined because of competition from Manchester. Correct. Factory-made goods from Manchester reduced the demand for Indian cotton and silk manufactures in international markets.

Statement III: The initial impact of British industrialisation in India was a large-scale movement of people from agriculture to factories. Incorrect. Unlike Britain, the initial impact in India was that more people moved into agriculture rather than factory employment.

Statement IV: The extensive import of cheap European manufactured goods led to the decline of many village industries. Correct. Cheap imported goods and the establishment of Western-style factories weakened village industries and encouraged many artisans to leave their traditional occupations.