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Tag: Class 11th Indian Economic Development Chapter-wise Answers

  • Class 11th Economics Indian Economy 1950 – 1990 Chapter-2 Question-7

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    Question 7. What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.

    Answer

    Green Revolution refers to the large increase in agricultural production, especially of wheat and rice, due to the use of High Yielding Variety (HYV) seeds along with assured irrigation, fertilisers and pesticides in India from the mid-1960s onwards.

    Why was the Green Revolution implemented?

    • Agricultural productivity was very low at the time of independence

    • India depended on food imports, especially from the USA

    • Frequent droughts and monsoon failures caused food shortages

    • To achieve self-sufficiency in food grains and ensure food security

    • To modernise agriculture using scientific methods

    How did it benefit the farmers?

    • Increased crop yield and farm output

    • Raised farm incomes, especially in irrigated regions

    • Created higher marketable surplus for sale

    • Reduced the risk of famine and hunger

    • Enabled the government to build buffer stocks of food grains

    Dr. M. S. Swaminathan is regarded as the chief architect and proponent of the Green Revolution in India for his role in introducing High Yielding Variety (HYV) seeds and modern agricultural practices, especially in wheat and rice production.

    Conclusion 

    The Green Revolution transformed Indian agriculture by increasing productivity and making India self-sufficient in food grains, though its benefits were initially limited to certain regions and crops

  • Class 11th Economics Indian Economy 1950 – 1990 Chapter-2 Question-6

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    Question 6. Explain the need and type of land reforms implemented in the agriculture sector.

    Answer

    Need for Land Reforms

    At the time of independence, Indian agriculture was marked by inequitable land distribution, low productivity and exploitation of cultivators. The land tenure system was dominated by intermediaries such as zamindars who collected rent but did not invest in improving agriculture. The actual tillers had no ownership rights, which reduced their incentive to increase production. Therefore, land reforms were needed to:

    • Ensure equity and social justice in rural areas

    • Increase agricultural productivity by giving land ownership to cultivators

    • Remove intermediaries who exploited peasants

    • Reduce concentration of landholding in a few hands

    • Promote the principle of “land to the tiller”

    Types of Land Reforms Implemented

    1. Abolition of Intermediaries

      • Zamindari, jagirdari and related systems were abolished.

      • Ownership rights were transferred to actual tillers of the soil.

      • This ended exploitation and encouraged farmers to invest in land improvement.

    2. Tenancy Reforms

      • Tenants were given security of tenure and fair rent.

      • In some cases, tenants were allowed to purchase land from landlords.

    3. Land Ceiling Laws

      • A maximum limit was fixed on the amount of land an individual could own.

      • Surplus land was taken by the government and redistributed to landless farmers.

    4. Consolidation of Landholdings

      • Fragmented and scattered landholdings were consolidated into single plots.

      • This improved efficiency of cultivation and use of modern technology.

    Land reforms were a major policy initiative after independence aimed at improving equity and productivity in agriculture. Though successful in states like Kerala and West Bengal, their impact remained limited in many parts of India due to poor implementation and loopholes in laws.

  • Class 11th Economics Indian Economy 1950 – 1990 Chapter-2 Question-5

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    Question 5. What is marketable surplus?

    Answer:
    Marketable surplus refers to that part of agricultural produce which the farmers sell in the market after meeting their own consumption requirements. It plays an important role in stabilising food prices and supplying food grains to urban and non-farming populations.

    EXTRA DRILLINGS

    Importance of Marketable Surplus

    • Helps in maintaining regular supply of food grains in the market

    • Enables the government to procure grains for buffer stock and public distribution

    • Contributes to price stability, especially during shortages

    • Supports growth of non-agricultural sectors by supplying food

    • Increased significantly during the Green Revolution period

    Numerical Example (Simple)

    Suppose a farmer produces 100 quintals of wheat in a year.

    • Kept for family consumption = 30 quintals

    • Used as seed and for livestock = 10 quintals

    Total personal use = 40 quintals

    👉 Marketable surplus = 100 − 40 = 60 quintals

    So, 60 quintals is the marketable surplus — the quantity sold in the market.

    Flow-chart 

    Total Agricultural Production
    ↓
    Farmer’s Own Consumption
    (food, seed, livestock use)
    ↓
    Remaining Produce
    ↓
    Marketable Surplus (Sold in the Market)

    Why Marketable Surplus is Important

    A higher marketable surplus increases food availability in the market, helps the government build buffer stocks, and ensures stable food prices, especially during shortages

  • Class 11th Economics Indian Economy 1950 – 1990 Chapter-2 Question-4

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    Question 4. What are High Yielding Variety (HYV) seeds?

    High Yielding Variety (HYV) seeds are specially developed seeds that produce a much higher output per hectarecompared to traditional seeds.

    In simple words:

    • They are scientifically improved seeds

    • Give more yield, especially of crops like wheat and rice

    • Need adequate irrigation, fertilisers, and pesticides to work effectively

    • Were a key factor behind India’s Green Revolution

    These seeds helped break the stagnation in Indian agriculture and played a major role in making India self-sufficient in food grains during the post-independence period (especially from the mid-1960s onwards)

    In short, High Yielding Variety (HYV) seeds are scientifically developed seeds that produce a much higher output per hectare compared to traditional seeds. They require adequate irrigation, fertilisers and pesticides and were a major factor behind the Green Revolution in India, helping the country achieve self-sufficiency in food grains.

    ____________________________

    EXTRA DRILLING

    Short Note: Advantages and Limitations of HYV Seeds

    Advantages

    • Significantly increase agricultural productivity

    • Help in achieving food security and self-sufficiency

    • Contributed to the success of the Green Revolution

    • Increased marketable surplus of food grains

    • Improved farmers’ incomes in irrigated regions

    Limitations

    • Require heavy use of irrigation, fertilisers and pesticides

    • Not suitable for rain-fed and drought-prone areas

    • Initially benefited mainly large and affluent farmers

    • Higher vulnerability to pests and diseases

    • Can increase inequality if state support is absent

  • 11th/Economics/Indian Economy 1950-1990/Chapter-2/Question-3

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    Question 3. Why should plans have goals?

    Plans should have clearly defined goals because goals give direction, clarity, and purpose to the planning process.

    First, goals help in deciding priorities. Since resources in an economy are limited, it is not possible to achieve everything at the same time. Clearly stated goals help planners choose what is more important and allocate resources accordingly.

    Second, goals provide a basis for policy formulation. When goals like growth, equity, self-reliance, and modernisation are fixed, appropriate policies and strategies can be designed to achieve them.

    Third, goals help in measuring performance and success. Without goals, it would be difficult to assess whether a plan has been successful or not. Goals act as benchmarks for evaluation.

    Finally, goals ensure coordination and consistency among different sectors of the economy. They help align policies in agriculture, industry, education, and infrastructure towards a common national objective.

    Conclusion

    Thus, plans must have goals to ensure focused development, effective use of resources, policy coherence, and proper evaluation of outcomes.

    EXTRA DRILLING

    Difference between Planning and Goals in Indian Economic Development

    Planning and goals are closely related, but they are not the same.

    Planning refers to the overall process or method adopted by the government to achieve development.
    Goals refer to the objectives or targets that the planning process seeks to achieve.

    Explanation in simple words

    • Planning answers “How will development be carried out?”
      (by preparing Five Year Plans, allocating resources, choosing priority sectors)

    • Goals answer “What do we want to achieve through development?”
      (such as growth, equity, self-reliance, and modernisation)

    Difference at a glance

    Basis Planning Goals
    Meaning A systematic process of using resources for development

    Desired outcomes of the planning process
    Nature Means / method Ends / objectives
    Focus Allocation of resources, policies, and strategies

    Growth, equity, self-reliance, modernisation
    Time frame Usually medium or long-term (e.g., Five Year Plans)

    Can be short-term or long-term
    Example (India) Five Year Plans, Planning Commission

    Growth, equity, self-reliance, modernisation

    One-liner

    Planning is the organised process of economic decision-making, while goals are the objectives that planning aims to achieve.

  • Class 11th Economics Indian Economy 1950-1990 Chapter-2 Question-2

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    Question 2. Why did India opt for planning?

    India opted for economic planning after independence to overcome the deep economic problems inherited from colonial rule and to ensure balanced and inclusive development.

    At the time of independence, India was marked by widespread poverty, low per capita income, unemployment, agricultural stagnation, and industrial backwardness. The market forces alone were considered inadequate to address these challenges. Hence, a planned approach was seen as necessary.

    One major reason was to ensure rapid economic development. Through planning, the government could systematically allocate scarce resources to priority sectors like agriculture, industry, education, and infrastructure.

    Planning was also adopted to promote social justice and equity. India aimed to reduce inequalities of income and wealth and ensure that the benefits of growth reached all sections of society, not just a few.

    Another important reason was to achieve self-reliance. After colonial exploitation, India wanted to reduce dependence on foreign countries for essential goods, capital, and technology.

    Lastly, planning was necessary to define a clear role for the public sector. Large industries, infrastructure, and heavy investments required government intervention, which private enterprise alone could not provide.

    Conclusion

    Thus, India opted for planning to achieve growth, equity, self-reliance, and overall national development in a systematic and coordinated manner.

  • Class 11th Economics Indian Economy 1950-1990 Chapter-2 Question-1

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    Question 1. Define a plan.

    A plan refers to a systematic statement of how a nation’s resources are to be used to achieve specific economic and social objectives within a given period of time. It outlines both general goals and specific targets, along with the policies and priorities required to achieve them.

    In the Indian context, plans were usually framed for a five-year period and hence were called Five Year Plans. These plans also formed part of a longer-term development strategy known as the perspective plan.

    EXTRA DRILLING

    India has completed 12 Five Year Plans so far.

    • The First Five Year Plan began in 1951.

    • The Twelfth Five Year Plan covered the period 2012–2017.

    After 2017, the system of Five Year Plans was discontinued and replaced by NITI Aayog, which follows a long-term vision (15 years), 7-year strategy, and 3-year action agenda instead of Five Year Plans.

  • Class 11th Economics Indian Economy Chapter-1 Question-16

    Question 16.

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

    While British rule in India was largely exploitative in nature, some positive contributions did emerge as by-products of colonial administration. However, these benefits were not intended for India’s development and were mainly designed to serve British interests.

    One notable contribution was the development of infrastructure, especially railways, roads, ports, and postal and telegraph systems. Though built primarily to facilitate colonial trade and military control, these facilities later helped in integrating markets, improving mobility, and promoting national integration in independent India.

    Another contribution was the introduction of a uniform system of administration and law. The British established a centralised bureaucracy, civil services, and a judicial system based on the rule of law. These institutions provided India with a basic administrative framework after independence.

    The British also introduced Western education, including the English language. This helped create a class of educated Indians who became leaders of the national movement and played a crucial role in shaping modern democratic institutions.

    In agriculture, the British commercialised farming by introducing cash crops such as tea, coffee, cotton, and jute. While this often harmed food security, it did integrate Indian agriculture with global markets.

    They also carried out regular census operations and surveys, generating valuable data on population and resources, which later aided economic planning.

    Critical Assessment

    It must be emphasised that these contributions were mostly incidental. The primary objective of British policies was to strengthen colonial rule and economic exploitation. The negative impacts—such as poverty, deindustrialisation, and economic stagnation—far outweighed the limited benefits.

    Conclusion

    In conclusion, although British rule left behind some useful institutions and infrastructure, these were not aimed at India’s welfare. Any positive contributions were secondary and unintended, and they cannot justify the overall economic and social damage caused by colonial rule.

  • Class 11th Economics Indian Economy Chapter-1 Question-15

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    Question 15.

    Indicate the volume and direction of India’s trade at the time of independence.

    At the time of independence in 1947, India’s foreign trade reflected the colonial pattern of economic exploitation. Both the volume and direction of trade were shaped to suit British interests rather than India’s development needs.

    In terms of volume, India’s foreign trade had expanded over time, but this growth did not benefit the Indian economy adequately. India generally showed an export surplus, but this surplus was used to finance the drain of wealth through salaries, pensions, interest payments, and profits remitted to Britain, instead of being invested in India.

    Regarding the direction of trade, Britain occupied a dominant position. About half of India’s foreign trade was conducted with the United Kingdom. Other trading partners included China, Ceylon (Sri Lanka), Persia (Iran), and some countries of Southeast Asia, but their share was relatively small.

    India mainly exported primary products such as raw cotton, jute, tea, coffee, and foodgrains, while importing manufactured goods, machinery, and capital equipment from Britain.

    Conclusion

    Thus, at the time of independence, India’s trade volume was significant but exploitative in nature, and the direction of trade was heavily tilted towards Britain, reinforcing India’s role as a supplier of raw materials and a market for finished goods.

  • Class 11th Economics Indian Economy Chapter-1 Question-14

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    Question 14. When was India’s first official census operation undertaken?

    India’s first official and systematic census was conducted in 1881.

    Although some population counts were attempted earlier, the Census of 1881 is regarded as the first complete, regular, and reliable census operation carried out across British India. Since then, the census has been conducted every ten years.

    _________________________________________

    EXTRA DRILLING

    Discuss the first official census of India

    The first official census of India was conducted in 1881 during British rule. While some population counts had been carried out earlier, the Census of 1881 is considered the first systematic, complete, and all-India census.

    The main objective of the census was administrative convenience. The British government wanted accurate data on population size, distribution, and composition to improve tax collection, governance, and law-and-order management. It was not aimed at social welfare or development planning.

    This census covered most parts of British India and followed a uniform methodology, which made the data more reliable than earlier attempts. It collected information on population size, sex, age, occupation, religion, and caste, though the classification methods were often crude and rigid.

    The Census of 1881 revealed important demographic features:

    • India had a very large but slowly growing population

    • Birth and death rates were extremely high

    • The population was overwhelmingly rural and dependent on agriculture

    • Literacy levels were extremely low

    The Census Commissioner for this operation was W.C. Plowden, who helped standardise census procedures.

    Significance

    The first official census laid the foundation of India’s decennial census tradition, which continues even today. It became an important source for understanding India’s demographic structure during the colonial period, though its purpose remained colonial rather than developmental.

    Conclusion

    In conclusion, the Census of 1881 was a landmark in Indian demographic history as it introduced a regular, scientific population count, despite being driven mainly by the administrative needs of the colonial government.

  • Class 11th Economics Indian Economy Chapter-1 Question-13

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    Question 13.

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

    At the time of independence in 1947, India inherited an economy that had been severely weakened by nearly two centuries of colonial rule. The country faced several deep-rooted economic challenges that required urgent attention.

    One of the most serious challenges was widespread poverty and low per capita income. A large proportion of the population lived below subsistence level due to low productivity, stagnant growth, and lack of employment opportunities.

    Another major problem was the overdependence on agriculture. About 70% of the workforce was engaged in agriculture, which was characterised by low productivity, outdated technology, and heavy pressure on land. This resulted in disguised unemployment and low incomes in rural areas.

    India also faced the challenge of industrial backwardness. The industrial base was narrow, limited mainly to consumer goods such as cotton and jute. Heavy and capital goods industries were almost absent, making the country dependent on imports for machinery and technology.

    The poor state of infrastructure further aggravated the situation. Transport, power, and communication facilities were inadequate and regionally imbalanced, as they had been developed mainly to serve colonial interests.

    Another crucial challenge was unemployment and underemployment, especially among rural populations and displaced artisans affected by deindustrialisation.

    In addition, India suffered from low levels of human development. Literacy rates were extremely low, especially among women, and health indicators such as life expectancy and infant mortality reflected poor living conditions.

    Conclusion

    In sum, at independence India faced poverty, agricultural stagnation, industrial backwardness, unemployment, inadequate infrastructure, and low human capital, making planned and balanced economic development an urgent necessity.

  • Class 12th Economics Indian Economy Chapter-1 Question-12

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    Question 12.

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

    India’s occupational structure during the pre-independence period clearly reflected the underdeveloped and colonial nature of the economy. Most people were engaged in traditional occupations, with very limited industrial employment.

    One of the most important features was the overdependence on agriculture. Nearly 70–75% of the working population was engaged in agriculture and allied activities. This heavy dependence increased pressure on land and kept productivity and incomes extremely low.

    A second key feature was the very small share of industry in employment. Manufacturing activities employed only about 10–12% of the workforce. Modern industries were limited and largely confined to a few urban centres, while large-scale industrial employment remained insignificant.

    Traditional village industries and handicrafts were in decline due to British policies and competition from machine-made goods. As a result, many artisans were forced to abandon their traditional occupations and take up agriculture as a means of survival.

    The service sector employed around 13–15% of the population. Most jobs in this sector were related to administration, trade, transport, and personal services, and were largely urban-based.

    Another notable feature was the lack of occupational mobility. Social constraints, caste rigidities, and lack of modern education restricted people from moving from traditional occupations to better-paying jobs.

    Conclusion

    To sum up, India’s pre-independence occupational structure was characterised by agricultural dominance, weak industrial base, declining handicrafts, limited services, and low productivity, all of which reflected the backward and colonial nature of the economy.

  • Chapter 11th Economics Indian Economy Chapter-1 Question-11

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    Question 11.

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

    India’s demographic profile during the colonial period reflects low human development and stagnant population growth, mainly due to poor health conditions and widespread poverty.

    During the late nineteenth and early twentieth centuries, population growth in India was very slow. Between 1881 and 1921, the population increased at a very low rate, with the average annual growth remaining below 1%. This was because the high birth rate was largely neutralised by an equally high death rate.

    Some key quantitative features of India’s population during the colonial period were:

    • Birth rate: Very high, around 45–50 per thousand

    • Death rate: Almost equally high, about 40–45 per thousand

    • Life expectancy: Extremely low, averaging around 32 years

    • Infant mortality rate: Alarmingly high, roughly 218 per thousand live births

    These figures point towards poor health infrastructure, frequent famines, epidemics, and inadequate nutrition.

    Colonial India was also a predominantly rural society, with nearly 85–90% of the population living in villages and heavily dependent on agriculture for livelihood. The sex ratio remained unfavourable, and literacy levels were extremely low, standing at around 16% at the time of independence, with female literacy even lower.

    Conclusion

    Thus, a quantitative appraisal of India’s demographic profile during the colonial period highlights high fertility and mortality, low life expectancy, high infant mortality, slow population growth, and low literacy, clearly indicating the underdeveloped and exploitative nature of the colonial economy.

  • Class 11th Economics Indian Economics Chapter-1 Question-10

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    Question 10. Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?

    Answer:
    The year 1921 is regarded as the defining year marking the demographic transition from the first stage (high birth and death rates) to the second stage (declining death rate but high birth rate) in India.

    The Census of 1921 is therefore known as the “Year of Great Divide” in India’s demographic history.

    EXTRA DRILLING

    What do you mean by the “Year of Great Divide”?

    The “Year of Great Divide” refers to the year 1921 in Indian demographic history.

    In simple words, it was the year that clearly separated two phases of population growth in India.

    Why is 1921 called the Year of Great Divide?

    • Before 1921

      • India had very high birth rates and very high death rates.

      • Population growth was slow and often stagnant.

      • Frequent famines, epidemics, and poor health facilities caused high death rates.

    • After 1921

      • Death rates started declining steadily due to improvements in:

        • Medical care

        • Sanitation

        • Control of epidemics

      • Birth rates, however, remained high.

      • This led to rapid growth of population.

    Because 1921 marked this clear turning point, it became known as the “Year of Great Divide.”

  • Class 11th Economics Indian Economics Chapter-1 Question-9

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    Question 9.

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

    The drain of Indian wealth refers to the continuous and unrequited transfer of India’s income and resources to Britain during the colonial period, without any equivalent return or benefit to India.

    In simple words, it means that India’s wealth was taken away to England through various economic and administrative channels, making India poorer and Britain richer.

    This drain took place mainly through the following ways:

    First, a large part of Indian revenue was used to pay salaries and pensions of British officials, which were earned in India but spent in Britain.

    Second, India had to bear the cost of administrative expenses, military costs, and wars fought by the British outside India, even though these did not serve Indian interests.

    Third, profits of British companies, plantations, traders, and investors operating in India were sent back to Britain instead of being reinvested in India.

    Fourth, interest payments on public debt raised in Britain but spent in India also led to a drain of wealth.

    Finally, India exported goods to Britain but did not receive equivalent imports or payments in return, creating an export surplus that benefited Britain.

    Conclusion
    Thus, the drain of wealth was a major negative consequence of colonial rule. It reduced India’s ability to invest in development, contributed to poverty, and became a central theme of early Indian nationalist criticism of British economic policies.

  • Class 11th Economics Indian Economics Chapter-1 Question-8

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    Question 8.

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

    The industrial policy followed by the British colonial administration in India suffered from several serious shortfalls. These policies were designed to serve British interests rather than promote balanced industrial development in India.

    One major shortfall was the absence of a clear and comprehensive industrial policy. The British government never made a serious attempt to promote indigenous industries. Industrial growth occurred only in a few selected areas and was largely left to private British enterprise.

    Another important weakness was the neglect of basic and capital goods industries. Industries such as iron and steel, heavy machinery, and chemical industries were not encouraged because their development would have competed with British industries.

    The British industrial policy also resulted in regional imbalances. Industrial development was concentrated mainly in port cities like Bombay, Calcutta, and Madras, while the interior regions remained largely backward and underdeveloped.

    Further, the policy failed to protect traditional and small-scale industries. Indian handicrafts and cottage industries were exposed to unfair competition from cheap machine-made imports, leading to their decline and widespread unemployment among artisans.

    Finally, the British promoted India mainly as a supplier of raw materials and a market for finished British goods. This led to what is described as the “colonial pattern of industrialisation”, which did not generate self-sustaining or diversified industrial growth.

    Conclusion
    In short, British industrial policy was exploitative and unbalanced. It hindered India’s industrial development and left the economy weak and dependent at the time of independence.

  • Class 11th Economics Indian Economics Exercise 1 Question 6

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    Question 6.

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

    Yes, I agree with this view. The traditional handicrafts industries in India were severely ruined during British rule due to several economic and political reasons.

    One major reason was the discriminatory trade policies of the British government. Indian handicraft goods faced heavy duties in British markets, while British machine-made goods were allowed to enter India at very low or no duties. This made Indian products expensive and uncompetitive.

    Another important factor was the flooding of Indian markets with cheap machine-made goods produced after the Industrial Revolution in Britain. These goods were cheaper and produced in large quantities, leading to a sharp fall in demand for Indian handmade products.

    The loss of royal patronage also contributed to the decline of handicrafts. Earlier, Indian rulers and courts supported artisans, but with the collapse of Indian kingdoms under British rule, this support disappeared.

    Moreover, the British government did not provide any protection or support to Indian handicrafts. Instead, India was reduced to a supplier of raw materials and a market for British manufactured goods.

    In conclusion, British economic policies led to the systematic destruction of Indian handicrafts, resulting in large-scale unemployment among artisans and contributing to the process of deindustrialisation in India.

    OR YOU CAN ANSWER IN A BIT DETAILED MANNER:-

    Yes, I fully agree with this view that the traditional handicrafts industries were ruined under British rule.
    The destruction of these industries was mainly due to the colonial economic policies of the British. The reasons are explained below in simple and clear terms:

    Reasons for the Ruin of Traditional Handicrafts in India

    1. Discriminatory Trade Policies
    The British followed a policy that favored British industries. Indian handicraft products faced heavy export duties in England, while British machine-made goods entered India freely or at low duties. This made Indian products costlier and uncompetitive.

    2. Flooding of British Machine-Made Goods
    With the Industrial Revolution in Britain, factories produced cloth and other goods cheaply and in large quantities. These machine-made goods flooded Indian markets and replaced handmade Indian products, causing a sharp decline in demand for handicrafts.

    3. Loss of Royal Patronage
    Before British rule, Indian artisans received support from Indian rulers, zamindars, and princely courts. The British destroyed or weakened these systems, and with the decline of Indian royalty, artisans lost their traditional patrons.

    4. Decline of Urban Handicraft Centres
    Many famous centres of handicrafts, such as Dacca (muslin), Murshidabad, Surat, and Masulipatnam, declined as artisans were forced to abandon their crafts due to falling incomes.

    5. No State Support for Indian Industries
    The British government never tried to modernise or protect Indian handicrafts. Instead, they promoted British manufacturers to use India as a market for finished goods and a source of raw materials.

    Conclusion

    Thus, British rule led to systematic deindustrialisation of India. Traditional handicrafts were unable to compete with cheap machine-made imports and, as a result, millions of artisans lost their livelihoods and were forced to turn to agriculture or menial labour.

  • Class 11th Economics Indian Economics Chapter-1 Question-5

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    Question 5: What was the two-fold motive behind the systematic de-industrialisation effected by the British in pre-independent India?

    Answer:
    The British systematically de-industrialised India with two main objectives:

    1. To make India a supplier of raw materials:
      India was reduced to the status of a raw material exporting country, supplying cotton, jute, indigo and other primary products to British industries. This ensured a steady and cheap supply of inputs for Britain’s rapidly expanding industrial sector

    2. To turn India into a market for British manufactured goods:
      By destroying India’s traditional handicraft industries, the British created a huge market for finished goods produced in Britain. Indian consumers were forced to depend on imported British products, which helped Britain maximise its industrial profits

    Together, these motives led to the decline of indigenous industries, large-scale unemployment, and the long-term industrial backwardness of the Indian economy under colonial rule.

    Lets dive in more to learn about following terms:-

    Industrialisation

    Industrialisation means the process in which a country starts making more goods in factories and industries instead of producing things by hand at home.

    In simple words:

    • People move from traditional work (like farming or handcrafts)

    • Machines and factories are used

    • Large-scale production increases

    • More jobs are created in industries

    Example:
    When cloth is made in textile mills using machines instead of handlooms at home — that’s industrialisation.

    Deindustrialisation

    Deindustrialisation means the decline or destruction of industries in a country.

    In simple words:

    • Factories close or weaken

    • Traditional industries collapse

    • People lose industrial jobs

    • Production shifts back to raw materials or agriculture

    Example:
    When British factory-made cloth flooded Indian markets and Indian handloom weavers lost their livelihoods — that was deindustrialisation.

    In one line difference (very useful for exams):

    • Industrialisation → Growth of industries and factory production

    • Deindustrialisation → Decline of industries and loss of manufacturing