Chapter 6
Collectivist Economics in an Open Economy
Question 1: What was the sole purpose of the British imperialist rule?
answer : The sole objective of the British imperialist rule was to reduce India to a country that provided fertilizer for the rapid expansion of modern industry in England.
Question 2: What is Machlin?
answer: Muslin is a high quality cotton fabric.
Q.3 Where was muslin first produced?
answer : Muslin was first produced in Bengal, especially in Dhaka, the capital city of present-day Bangladesh.
Question 4: What is the smoothest type of muslin fabric known?
answer: The smoothest type of muslin cloth is known as muslin.
Question 5: What did foreign travelers call muslin cloth?
answer : They called it Malmalchahi or Malmalkhach.
Q.6 What does Malmalkhach mean?
answer: Malmalkhach means clothes worn by members of the royal family.
Question 7: Name the significant miner of India's national and per capita income during the colonial rule.
answer : V.S. K.S. R.S. V.S. Rao.
Q.8 What was the growth rate of India's GDP in the first half of the fortieth century?
answer : was less than 2%.
Question 9: What is the annual growth rate of India's GDP per capita in the first half of the fortieth century?
answer : ০.5%.
Question 10: In which year was the Tata Iron and Steel Company established?
answer : In 1907.
Question 11: What is meant by a capital goods industry??
answer : An industry that can produce machinery and equipment, which are used to produce consumer goods, is called a capital goods industry.
Question 12: Name one significant shortcoming of the new industry sector in India.
answer : One of the significant shortcomings of the new industrial sector in India is the limited scope of public sector activities.
Question 13: In which year was the first population data of India collected during the British rule?
answer : In 1881.
Q.14 In which year was the Suez Canal opened?
answer : In 1869.
Q.15 Which seas are connected by the Suez Canal?
answer : The Suez Canal connects the port of Said in the Mediterranean Sea and the Gulf of Suez, a tributary of the Red Sea.
Question 16: What is Chuwej Canal?
answer : The Suez Canal is an artificial waterway that flows from north to south through the Suez Canal in northeastern Egypt.
Q.17 In which years were the first and second stages of population transmission in India?
answer : Before 1921, India was in the first stage of population transmission and the second stage began after
Q.18 What was the life expectancy in India during the British rule?
answer : 32 years old.
Q.19 What was the literacy rate of women during the British rule?
answer : About 7 percent.
Question 20: What is the name of the Nobel Prize winning book by Amartya Sen?
answer : Poverty and Famines.
Question 21: What proportion of the total workforce was employed in the agricultural sector during the colonial rule?
answer : About 70-75 percent.
Question 22: In which year did the British introduce railways in India?
answer : In the 1850s.
Q. 23 Which places were connected by the first railway in India?
answer : India's first railway connected Bombay and Thane.
Question 24: When was Tata Airlines established?
answer : In 1932.
Question 25: Choose the correct answer:
(a) The business structure of India can be divided into sectors.
(a) It is
(b) Two
(d) Four
(C) He is
answer : (C) He is
(b) What is another name for service sector?
(a) Class III Industrial Sector
(b) Primary part
(c) Class II industrial sector
(d) Agricultural sector
answer : (c) Class II industrial sector.
(c) What was the state of the Indian economy before independence?
(a) Stationary
(b) Backwardness
(c) Underdeveloped
(d) All of these
answer: (d) All of these.
(d) What was the life expectancy of the people of India before independence?
(a) 32 years
(c) 60 years
(b) 50 years
(d) All of these
answer : (a) 32 years.
(C) The growth rate of per capita income before independence was-
(a) 0.9%
(b) 0.5%
(c) 1.2%
(d) 3%
answer : (b) 0.5%.
(1) The primary section covers-
(a) Agriculture
(b) Services
(c) undertaking
(d) All of them
answer : (a) Agriculture.
(g) Technical Crafts – Included in the sector
(a) Primary
(b) Second
(c) Third
(d) All of them
answer : (b) Second.
(h) The first Iron and Steel Industry in India was established.
(a) Calcutta
(b) Jamshedpur
(c) Patna
(d) Ranchi
answer : (b) Jamshedpur.
(i) Taxes imposed on imports
(a) Duties
(b) Quota
(c) Imports
(d) None of the above
answer : (a) Duties.
(j) During the pre-independence period, the main occupation of the people of India was-
(a) Enterprise
(b) Services
(c) Agriculture
(d) None of the above
answer : (c) Agriculture.
Q.1 What was the economy of India like before the arrival of the British?
answer : Before the arrival of the British, India had an independent economy. Agriculture was the main source of livelihood for most Indians, but various forms of construction were characteristic of the country's economy. India was famous for its cotton and silk textiles and handicrafts such as various metals and precious gems. These products could find markets all over the world.
Question 2: Name some of the enumerators who calculated the national income of India during the colonial rule.
answer : The colonial government never made a serious effort to calculate the national and per capita income of India. Some of the enumerators conducted at the private level are as follows:
(1) Dadabhai Naorji, (2) William Digby, (3) Findlay Sirach, (4) V.S. K.S. R.S. V.S. Rao, (5) R.K. C.S. The country.
Q.3 Why did the cotton industries of India suffer as a result of partition?
answer : The partition of the country at the time of independence led to the annexation of a large and most of the cotton-producing area of the undivided country to East Pakistan (now Bangladesh) and this caused the cotton industry in India to suffer from lack of raw materials. The cotton industries of India were severely affected by the partition.
Question 4: What were the population growth disparities in India during the British rule?
answer : During the British rule, there were no public health facilities for the majority of the population and if there were any, they were very scarce
was. As a result, water and airborne diseases spread and killed large numbers of people. The current infant mortality rate is 63 per 1,000, compared to 218 per 1,000 during the British rule. Again, life expectancy at that time was only 32 years compared to 63 years today.
Q.5 What were the roads like in India during the colonial rule?
answer : The roads built before the British rule were not suitable for modern transportation. The roads built at that time were mainly used to bring troops to India and to transport raw materials from the countryside to nearby railway stations or ports for export to England and other foreign countries. There was a severe shortage of convenient roads to maintain communication with the countryside in all weather conditions.
Q.6 How did the railways introduced by the British contribute to India?
answer : The railways introduced by the British had two important impacts on the structure of the Indian economy:
(1) This transport system helped the people of the country to travel far and wide and therefore, the introduction of railways removed geographical and cultural barriers in India.
(2) Secondly, this system encouraged the commercialization of Indian agriculture, which had an adverse impact on the relative self-reliance of the rural economy of India. Undoubtedly, the volume of India's export trade expanded, but, the benefits were rarely reaped by the Indian people.
Question 7: Give some assessment of the industrial policies introduced by the British colonial administrators in India.
answer : The industrial policy introduced by the British colonial administrators in India can be evaluated as follows:
(1) Destruction of indigenous handicrafts
(2) Less development of modern art
(3) Lack of capital-making industry
(4) The contribution of industry to GDP is very low.
Question 8: What were the main causes of poverty, economic slowdown and backwardness during the British rule?
answer : (a) Slowdown of national income.
(b) Slowdown in production and inputs.
(c) the declining tendency of the real wages of industrial workers.
(d) Deindustrialization of the Indian economy during the British rule.
(e) Rural-urban population structure.
Question 9: List the four characteristics of the Indian economy as an underdeveloped economy.
answer : (a) Weak economic infrastructure.
(b) Low per capita income.
(c) Priority of agriculture.
(d) Scarcity of capital.
Q. What was the state of the Indian economy during the British rule?
answer : During the reign of the First East India Company, there was a movement to change the method of production in England. This Industrial Revolution also affected the economy of India. Therefore, the economic group of India was fragmented by the movement. With the development of agriculture on a new zamindari system and commercial basis, the Indian peasantry was completely exploited. The British government did not really try to improve the economic situation in India. The development of railway transport, the expansion of education, etc. were done for economic exploitation. The cottage industry in India did not develop much during the British rule. For these reasons, the development of the Indian economy stagnated during the British rule.
Question 11: Briefly discuss 'Developing economies are mainly agricultural'
answer : Developing economies are mainly agriculturally based, as industries cannot develop due to lack of capital in developing economies and therefore the people who are lagging behind in technical sciences etc. have to become self-reliant on agriculture. The majority of the total workforce in an emerging economy
Most of the farmers and national income comes from agriculture. Although the growing economy is agriculturally based, agricultural production is not satisfactory.
Question 12: Give five reasons for the stagnation of the Indian economy during the British rule.
answer : (a) The British adopted art or other policies in their interest.
(b) During the British rule, all important industrial establishments were established in the private sector under capitalist policy.
(c) The British did not contribute to the real economic development of India.
(d) The British exported raw materials from India, produced them in England and distributed them in India.
(e) The British did not take any special measures on agriculture.
Question 13: Give a brief description of India's foreign trade during the British rule.
answer : Exports of Indian goods to England were restricted during the British rule. After the Industrial Revolution, only raw materials were imported from India. What India used to export, it was forced to import during the British rule. The British emphasized on exporting food items from India. Overall, foreign trade was not normal and free during the British rule.
Question 14: Explain any three reasons for the development of private industry in India during the British rule.
answer : (a) The British government followed a free trade policy at that time.
(b) Competition among Indian industries.
(c) Management brokerage system emerged during the British rule. The private industry develops significantly as brokers increase investment in the private sector.
Question 15: State the reasons for the decline of handicrafts in India during the British rule.
answer : The reasons for the decline of handicrafts during the British rule are:
(a) Due to the advancement of British industry, Indian handicrafts died out of competition.
(b) During the British rule, artists and craftsmen were deprived of royal patronage due to lack of domination by kings and maharajas.
(c) A new class of people emerged in India under the influence of the British. They looked with contempt on manufactured goods such as Indian clothing and helped bring about the demise of Indian handicrafts.
(d) The decline of Indian handicrafts also occurred due to the higher price of the products of Indian handicrafts compared to those produced in the large scale industries by the improved methods of the British.
Question 16: Name two effects of agricultural commercialization during the British rule.
answer : Two effects of agricultural commercialization during the British rule were:
(a) Emphasis was placed on irrigation but less attention was paid to the construction of drains, nads, and wells.
(b) Commercial agriculture, instead of changing the condition of the peasants, paved the way for exploitation by the zamindars.
Question 17: One of the developments of capitalist industry in India during the British rule
answer : Capitalist industry developed in India during the British rule.
The British established industry in India under capitalist policies and at that time no one but the capitalists could invest in industry. During the First World War, imports from other countries declined and the demand for Indian manufactured goods increased dramatically and therefore, the development of Indian capitalist industry was possible. In addition, the first railway line was opened in India during the British rule. The Indian business class also struggled to make profits by investing in factories and the development of capitalist industry in India was possible.
Q.18 What is meant by colonial rule?
answer : Colonial rule refers to the extraordinary social and political relationship between foreign rulers and ruled. When a foreign ruler determines the political and economic policies of the country and manages them in the interests of the ruling country, colonial rule begins. Foreign rulers plunder and exploit all the resources and development sectors of the country and establish markets for industrial products produced in their own countries. Thus, the colonized economy gradually entered a cycle of poverty.
Question 19: What is the meaning of capital investment?
answer : This was from the beginning of the Palace War to the end of the eighteenth century
The period is called the merchant capital period. In 1957, the East India Company seized political power throughout India. During this period, the British merchants deliberately hindered the progress of the Indian economy and the commercial media exploited substantial profits and the companies exploited the peasants by imposing high land revenues. This policy of exploitation introduced by the Company devastated the Indian peasants.
Question 20: What are the effects of various forms of exploitation by the British on the Indian economy??
answer : The effects of British exploitation on the Indian economy are as follows:
(a) India developed as a predominantly agricultural country; Commercial farming also expanded to some extent to protect the interests of Great Britain.
(b) During the eighteenth and nineteenth centuries, the British did not allow the modernization of India's industrial structure and this resulted in the destruction of the cottage and handicrafts of the country.
(c) The separation policy of trade protection introduced by the British gave them complete control over the Indian market.
(d) The British developed various infrastructure measures to increase the volume of their foreign trade and exploit the natural resources of India for their own benefit.
(e) Managing Agency Practice Absorbed about 50 per cent of the total profits of the consumer goods industries established in India as their bonuses.
(f) The British rulers economically exploited the Indian economy through 'Home Charges'
Question 1: State the main reasons for the stagnation of the agricultural economy of India during the colonial rule.
answer : During the colonial rule, the agricultural sector of India suffered from stagnation and almost frequent decline. The main reasons for this are as follows:
(1) From the agricultural sector in the zamindari system enacted by the Bengal Presidency
The profits generated went to the zamindars instead of the farmers.
(2) The zamindars did not undertake any initiative for the improvement of agriculture.
(3) Rent was collected from the peasants without any consideration of their economic condition.
(4) Zamindars lost their land rights if they failed to pay rent on due date.
(5) Poor quality technology, lack of irrigation and low application of fertilizers further deteriorated the condition of the farmers and contributed to the low level of agricultural productivity.
(6) The British had Indian farmers produce only cash crops that could be used in their industries.
(7) The acquisition of a large amount of highly fertile and irrigated agricultural land in the country adversely affects the production of agriculture in India.
Question 2: Write about the self-reliance of the rural economy in India before the arrival of the British.
answer : Due to the difficulties of transportation before the arrival of the British
The market scale was underdeveloped. Every village was self-sufficient. At that time, all the necessary materials were produced by the people of each village. Each village was self-sufficient by dividing its occupations into various categories such as craftsmen, goldsmiths, carpenters, blacksmiths, blacksmiths, oilmen, carpenters, barbers, etc. Agriculture was the main occupation of the Indian people at that time. However, the cottage industry produced in India was popular all over the world at that time. The handicrafts of the time included textiles, ornaments, brassware, bamboo and cane products, silk, velvet and jute.
One of the most important things about rural life was that almost all the craftsmen had to serve the villagers. Craftsmen were given land free of charge or in exchange for low rent. These artisans performed various tasks and in return they received a share of the produce of other villagers and the lack of dependence on others increased the strength of village life and prevented external invasions.
Q.3 What were the reasons for the economic changes in India during the colonial period?
answer : The reasons for the changes in the Indian economy during the colonial rule in the nineteenth century are as follows:
(a) Establishment of Pax Britannica: In 1818, the British conquered India
completes the job. British rule and the concomitant establishment of a strong central power in India created political unity in the country. This paved the way for economic progress in the country by improving law and order and economic unity in the country.
(b) Establishment of Roads Department and Railways: The road system of the country began to improve with the establishment of the Roads Department during the reign of Lord Delhousie in 1850 and the railways were constructed in This broke the isolation of the villages and expanded the market by connecting the rural areas with the outside world.
(c) Lack of Western systems and ideas: Western ideas, Western laws, English education, relations with the British people etc. brought about significant changes in the traditional values and ideas of India. These, in turn, had a direct and indirect impact on the traditional economy of India.
(d) Inflow of foreign capital and entrepreneurs: British rule in India
After its establishment, a large amount of foreign capital and investment was made in the coffee industry, railway construction, coal, indigo and factory industries. The influx of foreign capital and investment brought temporary momentum to India's economy, breaking its stagnation to some extent.
(e) Industrial Revolution in England: The Industrial Revolution in England after 1750 and especially after 1800 cheap industrial goods from India
Market penetration had a bad impact on India’s traditional economy.
Question 4: Do you think that resource extraction is the main factor in increasing poverty in India? If so, how?
answer : Resource extraction is another major factor in increasing poverty in India. The theory of wealth discharge developed by Dadabhai Naorji is understandable in this regard. Its main theme is how the British took wealth from India to their country and as a result the Indian economy was weakened and the poverty rate in India was increasing.
During the colonial rule, the British government extracted various resources from India to England. The main aspects of resource extraction are salaries paid to employees of British shipping companies, training expenses paid to British employees, travel bonuses, retirement allowances paid to retirees employed in India, interest payments on loans taken by the Government of India from the British Government. In addition, the Indian economy was weakened by the flow of large amounts of money from India to England and the export of gold from India to England. For nearly 200 years, India's agriculture, industry or other economic infrastructure was slowly weakening, let alone improving, as a result of the export of money and gold from India to England. The British government did not really try to improve the economic situation in India. The development of railway transport, the expansion of education, etc. were done for economic exploitation. The cottage industry in India did not develop much during the British rule. For these reasons, the development of the Indian economy stagnated during the British rule and as a result, the prevalence of poverty in India increased day by day.
The British exported raw materials from India and produced them in England
and sold them in India. Exports of Indian goods to England were restricted during the British rule. After the Industrial Revolution, only raw materials were imported from India. Earlier, India was forced to import what it exported during the British rule. The British emphasized on exporting food items from India. Overall, the extraction of resources during the British rule hampered agriculture, industry, transport, education, trade, etc. in India and consequently increased the poverty rate in India.
Question 5: Describe the main characteristics of the colonial economy.
answer : The main characteristics of the colonial economy are as follows:
(1) An important feature of the colonial economy was that the British government abolished the work culture of the people of colonial countries like India. The British government collected raw materials from the colonies, produced various products in improved methods and redistributed these products to the colonies.
(2) Another characteristic of the colonial economy was the destruction of Indian industry. Under the British rule, raw materials were taken from India and machined in their large scale industries and sold in India at low prices, leading to the premature death of Indian industry. (3) Export of Resources and Capital: From 1857 onwards, the British exported all the valuable resources and capital of India to their country, resulting in a decline in the amount of resources in the country.
