Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

What was the contribution of the new industrial sector (like textile  sector, iron and steel , sugar etc) to India's Gross Domestic Product (GDP) or Gross Value Added under colonial rule?

Options:

Significant and substantial

Moderate and steady

Small and limited

Dominant and influential

Correct Answer:

Small and limited

Explanation:

Overall, the growth of modern industry in India during colonial period was relatively slow, with a focus on cotton, jute, iron, and steel industries, followed by other sectors in the post-war era. However, the development of a capital goods industry, which produces machinery and tools for further industrialization, was severely lacking in India. The establishment of a few scattered manufacturing units was insufficient to compensate for the significant decline in the country's traditional handicraft industries. Additionally, the growth rate of the new industrial sector and its contribution to the Gross Domestic Product (GDP) or Gross Value Added (GVA) remained quite small.