A historical process caused major upheavals in India's economy, disrupting production, trade and agriculture, and linked India more fully to the world capitalist economy. After this process, India mainly became which of the following?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A source of raw materials and agricultural products and a consumer of manufactured goods
Option (1) A centre of factory production of cheap textiles for English markets — Incorrect. This reverses the real picture. England was the centre of factory production, and India bought its cheap manufactured textiles, which ruined the handloom industry.
Option (2) A source of raw materials and agricultural products and a consumer of manufactured goods — Correct. Colonialism linked India more fully to the world capitalist economy. India became a source of raw materials and agricultural products and a consumer of manufactured goods, mainly for the benefit of industrialising England.
Option (3) A source of manufactured goods and a consumer of raw materials and agricultural products — Incorrect. The two roles are swapped here. India supplied raw materials and farm products and bought manufactured goods; it did not supply manufactured goods to England.
Option (4) A major supplier of manufactured goods such as handloom cloth to the world market — Incorrect. India was a major supplier of manufactured goods to the world market before colonisation. After it, the handloom industry declined because of cheap English textiles.
NCERT (2026-27): “Colonialism and the Emergence of New Markets |