NCERT Solutions for Class 11 Economics (Indian Economic Development) Chapter 1 Indian Economy on the Eve of Independence

NCERT
SOLUTIONS
CLASS - 11th

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Book : Indian Economic Development Ncert Solutions | Chapter - 1 Economics

Class : 11th
Subject : Economics
Chapter : 1
Chapter Name : Development Policies and Experience

Q1 What was the focus of the economic policies pursued by the colonial government in India?
What were the impacts of the policies?

Answer. Focus :-
The colonial government in India pursued economic policies which were concerned with the
protection and promotion of the economic interests of their home country rather than
development of the Indian economy.
Impacts :-
→ Economic policies pursued by the colonial government brought about a fundamental
change in the structure of the Indian economy- transforming the country into supplier of
raw materials and consumer of finished industrial goods from Britain. The needs of the
industrial sector in Britain was taken care by the raw materials from India, becoming a
supplier of raw materials.
→ Studies have found that the country’s growth of aggregate real output during the first
half of the twentieth century was less than two per cent coupled with a meager half per
cent growth in per capita output per year. The handicraft industry of the country had
widespread market which declined during the colonial rule. The policies adopted by the
colonial government exploited the poor and the industries of the country.

Q2 Name some notable economists who estimated India’s per capita income during the colonial
period .

Answer. The colonial government never made sincere attempt to estimate India’s national and
per capita income. Some individuals who made attempts to measure such incomes are

Economist Year Estimate of National Estimate of Per
Income (in crore) Capita Income (in
crore)

Dadabhai Naoriji 1868 370 20
William Digby 1899 390 17
Findley Shirras 1911 1,942 80
V.KR.V. Rao 1931-32 1,689 62
R.C. Desai 1931-40 - -

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You can probably represent the above answer in tabular form as below:

Economist Year Estimate of National Estimate of Per
Income Capita Income

- - - -

Q3 What were the main causes of India’s agricultural stagnation during the colonial period?

Answer. India’s economy during the colonial period was agrarian- 85% of the country’s
population lived in villages and derived their livelihood directly or indirectly from agriculture.
Even though a large population was engaged, the agriculture sector experienced continuous
stagnation. The various causes of this stagnation were-
→ Land settlement introduced by the colonial government, under the zamindari system,
the profit accruing out of the agriculture sector went to the zamindars instead of the
cultivators. Not just the colonial government but also the zamindars did nothing to
improve the condition of agriculture.
→ The main motive of the zamindars was to collect rent regardless of the economic
condition of the cultivators, adding to their misery. This attitude of the zamindars was
mainly because of the Revenue settlement, which specified the date for depositing
specified sum of fixed revenue, failing which the zamindars would lose their rights.
→ Low levels of technology, lack of irrigation facilities and negligible use of fertilisers
added to the plight of farmers and dismal level of agricultural productivity.
→ Commercialization of agriculture means emphasizing on the production of cash crops
like indigo, opium, etc. instead of food crops like rice and wheat. They can be sold in the
markets to earn money. This would not help the farmers as they would engage in
production of cash crops instead of food crops, which was to be used by the British
industries, providing no incentive to the Indian farmers.
→ Indian agriculture starved investment in irrigation, flood control, drainage and
desalination of soil. Due to shift to commercial crops from food crops, small farmers did
not have the resources and technology, neither did they get any incentive from
agriculture.

Q4 Name some modern industries which were in operation in our country at the time of
independence.

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Answer. During the second half of the 19​th​ century modern industry began in India but the
progress was very slow.
→ In the initial stages the development was only confined to setting up cotton and jute
textile mills. Cotton textile mills dominated by Indians were located in western parts of
the country, Maharashtra and Gujarat. Jute mills dominated by foreigners were mainly
concentrated in Bengal.
→ Later on, iron and steel industries began to come up in the beginning of the 20​th​ century.
The Tata Iron and Steel Company(TISCO) was incorporated in 1907.
→ A few other industries in fields of sugar, cement, paper, etc. came up after the Second
World War.

Q5 What was the two-fold motive behind the systematic de-industrialisation effected by the
British in pre-independent India.
Answer. Similar to the agriculture sector, manufacturing sector in India could not develop a
sound Industrial base under colonial rule. As the country’s handicraft industries declined, no
modern industry was allowed to come in place of it. The primary motive of the colonial
government behind this systematic de-industrialisation was-
→ To reduce India to the status exporter of important raw materials for the upcoming
modern industries in Britain.
→ To turn India into a sprawling market for finished products of those industries so that
their continued expansion could be ensured to the maximum advantage of Britain.

Q6 The traditional handicrafts industries were ruined under the British rule. Do you agree with
this view? Give reasons in support of your answer.

Answer. Yes, the traditional handicrafts industries were ruined under the British rule.
● India was particularly known for its traditional handcrafts industries in the field of cotton
and silk textiles and metal and precious stone works.
● These products enjoyed worldwide market based on the reputation of the fine quality of
materials used and high standards of craftsmanship seen in imports from India.
● The British government was more concerned with protection and promotion of economic
interest of their country than the development of the Indian economy.
● The handicraft industry had completely declined during the colonial rule and there was
no modern industrial base allowed to come up to take pride of place so long enjoyed by
the handicraft industry.
● The colonial government introduced policies of de-industrialisation India reducing it to a
mere exporter of raw materials to Britain and a market for their industry made goods.

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Q7 What objectives did the British intend to achieve through their policies of infrastructure
development in India?

Answer. The British government introduced basic infrastructure such as roads, railways, ports,
water transport, posts and telegraph. The real motive behind this development was not to
provide India with basic amenities but to fulfill various colonial interests.
→ Roads built primarily served the purpose of mobilizing the troops and drawing out raw
materials from the countryside to the nearest railway to be sent to England. There was a
shortage of all-weather roads in the rural areas. Consequently, the people suffered a lot
during rainy season or through any natural calamity.
→ Railways were introduced in 1850 and is the biggest contribution. It enabled people to
take long distance travel and break geographical barriers while on the other hand, it
promoted commercialization of agriculture which adversely affected the self-sufficiency
of the villages. The volume of India’s exports expanded but its benefits never came to
the poor villagers.
→ The colonial dispensation also took measures for developing inland trade and sea lanes
and postal services, however, these measures did not provide satisfaction to the people.

Q8 Critically appraise some of the shortfalls of the industrial policy pursued by the British
colonial administration.

Answer. Shortfalls of the industrial policy pursued by the British colonial administration are-
→ The industrial policy did not introduce capital goods industry and there was no substitute
for the displaced handicrafts industry of the country. The growth rate of the new
industrial sector and its contribution to the Gross Domestic Product remained very small.
→ Limited area of operation of the public sector was another drawback. This sector
remained confined only to railways, power generation, communication, ports and some
other departmental undertakings.

Q9 What do you understand by the drain of Indian wealth during the colonial period?

Answer. India’s foreign trade throughout the colonial period was characterized by the
generation of a large export surplus. This came as a huge cost to the country’s economy,
several essential commodities such as- food grains, clothes, kerosene, etc. were scarcely
available in domestic market. The export surplus did not result in any flow of gold or silver into
India. Instead, this was used to make payments for the expenses incurred by an office setup by

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Book : Indian Economic Development Ncert Solutions | Chapter - 1 Economics

the colonial government in Britain, expenses on war, again fought by the British government,
and the import of invisible items, all of which led to the drain of Indian wealth.

Q10 What is regarded as the defining year to mark the demographic transition from its first to
the second decisive stage?

Answer. Before 1921, India was in the first stage of demographic transition. The second stage
began after 1921. However, neither the total population of India nor the rate of population
growth at this stage was very high.

Q11 Give a quantitative appraisal of India’s demographic profile during the colonial period.

Answer. The details about the population of British India were first collected through a census in
1881, it showed unevenness in India’s population growth. Before 1921, India was in its first
stage of demographic transition and the second stage began after 1921, neither the total
population nor the rate of population growth was very high at this stage.

● The overall literacy level was less than 16%, out of this, female literacy level was at a
negligible low of about 7%.
● Public health was unavailable and inadequate causing water and air-borne diseases.
● The mortality rate was very high particularly the infant mortality rate was alarming- about
218 per thousand in contrast to present infant mortality rate at 40 per thousand.
● Life expectancy was very low- 44years in comparison to 68 years at present.

Q12 Highlight the salient features of India’s pre-independence occupational structure.

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Answer. Pre-independence occupational structure i.e., distribution of working persons across
different industries and sectors, showed little signs of change.

→ Agricultural sector accounted for the largest share of workforce, this usually
remained at a high of 70-75%.
→ Manufacturing and service sectors accounted for only 10 and 15-20%
respectively.

Growing regional variation was another striking aspect. Parts of the Madras Presidency,
Bombay and Bengal went through a decline in the dependence of the workforce on agricultural
sector with a commensurate increase in manufacturing and services sectors.

Moreover, there was an increase in workforce share in the agricultural sector in the states of
Orissa, Rajasthan and Punjab, at the same time.

Q13 Underscore some of India’s most crucial economic challenges at the time of independence.

Answer. After two centuries of colonial rule, the impact of the British rule was still present in
India. Following are the enormous socio-economic challenges before the country.

→ The agricultural sector was burdened with surplus labour and extremely low productivity.
→ The industrial sector needed modernization, diversification, capacity building and
increased public investment.
→ Foreign trade was oriented to feed the Industrial Revolution in Britain.
→ Infrastructure facilities including the famed railway networks, needed upgradation,
expansion and public orientation.
→ Prevalence of rampant poverty and unemployment required welfare orientation of public
economic policy.
→ Mortality rate and infant mortality rate was at an alarming situation, life expectancy was
really low and public health facilities were unavailable to the population.

Q14 When was India’s first official census operation undertaken?

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Answer. The first census of British India was collected in 1881 was a great step towards modern
synchronous census. It laid emphasis on classification of demographic, economic and social
characteristics. It obtained information on marital status, literacy level, place of birth, mother
tongue, caste and sect. Though suffering from limitations, it revealed the unevenness in India’s
population growth. Subsequently, every ten years such census operations were carried out.

Q15 Indicate the volume and direction of trade at the time of independence.

Answer. India has been an important trading center since ancient times, but the restrictive
policies of commodity production, trade and tariff pursued by the colonial government, affected
the structure, composition and volume of India’s foreign trade. India became the exporter of
primary products like, silk, cotton , jute, wool, sugar, indigo, etc. and the importer of finished
goods like cotton, silk and woolen clothes and machineries produced in Britain.

Britain maintained a monopoly control over India’s exports and imports. As a result, more than
half of India’s foreign trade was restricted to Britain while the rest allowed with a few other
countries like China, Ceylon(Sri Lanka) and Persia(Iran). The opening of Suez canal intensified
British control over India’s foreign trade.

Q16 Were there any positive contributions made by the British in India? Discuss.

Answer. The British introduced railways, their most important contribution. It allowed people to
undertake long distance travel breaking the geographical and cultural barriers, railways also
fostered commercialization of Indian agriculture which adversely affected the self-sufficiency of
the villages. This was used as the base for further growth for the country.

It opened channels of foreign trade which helped India to commute with other foreign nations
easily and create good relation with them. The colonial government also laid the structure of
various developmental projects, they took measures to develop the inland trade and sea lanes,
electric telegraph and postal services.

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