The Indian economy was independent before the advent of the colonial rule. Even though agriculture was the main source of livelihood for majority of people, the country’s economy was characterised by various kinds of manufacturing activities. India was particularly well known for its handicraft industries. Under colonial rule, the country’s world famous handicraft industries declined. Although modern industry began to take root in India during the second half of the nineteenth century, but its progress remained really slow. There was hardly any capital goods industry to help promote industrialisation in our country. The colonial regime did make certain contributions and developments in the country in the areas like infrastructure. But the real motive behind these developments was to serve various colonial interests.

What was the contribution of the industrial sector to the Gross Domestic Product (GDP) during colonial rule?

Very small

The correct answer is Option 1: Very small

During the colonial rule, the contribution of the industrial sector to India's Gross Domestic Product (GDP) was very small. The industrial sector was underdeveloped, with limited growth in modern industries and a significant decline in traditional handicraft industries. The focus of the colonial economy was more on extracting resources and raw materials for Britain's benefit rather than on developing a robust industrial base in India.

"During the colonial period, the occupational structure of India, i.e., distribution of working persons across different industries and sectors, showed little sign of change. The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70-75 per cent while the manufacturing and the services sectors accounted for only 10 and 15-20 per cent respectively."