Economic Impact of British rule on India MCQs with Explanations
About the Topic: Economic Impact of British Rule on India is an important topic of Modern History for UPSC Prelims and other competitive examinations. British economic policies transformed India's traditional economy through heavy taxation, commercialization of agriculture, deindustrialization, drain of wealth and the development of railways and modern industries. Practice Economic Impact of British Rule on India MCQ Questions with answers and detailed explanations to strengthen your preparation.
The Factories Act, 1881 was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions.
N.M. Lokhande was a pioneer in organizing the labour movement in British India.
Which of the above statements is/are correct?
Correct Answer:
(B) 2 only
The Factories Act, 1881, prohibited the employment of children under the age of seven, limited the number of working hours for children below the age of 12 and required that dangerous machinery should be fenced properly. The act was focused on the security of the labours who were a child. N.M. Lokhande was a pioneer of the labour movement in India. He is remembered not only for ameliorating the working conditions of textile mill-hands in the 19th century but also for his courageous initiatives on caste and communal issues. Therefore, only statement 2 is correct.
Ques: 2
With reference to the period of colonial rule in India ‘Home Charges’ formed an important part of the drain of wealth from India. Which of the following funds constituted ‘Home Charges’?
Funds used to support the Indian Office in London.
Funds used to pay salaries and pensions of British personnel engaged in India.
Funds used for waging wars outside India by the British.
Select the correct answer using the code given below :
Correct Answer:
(B) 1 and 2
Home charges referred to the expenditure incurred in England by the Secretary of State on behalf of Indian Government. Home charges consisted of : Purchases of military stores. Expenditure on India office establishment. Interest on debts. Interest on railway capital investment. Non-effective charges of the army. Pensions and gratuities payable in England to retired civil servants of the company. Funds used for waging wars outside India by the British were not included in home charges. So desirable option will be (b).
Ques: 3
The staple commodities of export by the English East India Company from Bengal the middle of the 18th century were
Correct Answer:
(D)
Cotton, silk, salt petre and opium
By the late 17th century and early 18th century Bengal had begun to emerge as an essential source of supply that the East India company could purchase for sale in Europe. Goods purchased from Bengal included cotton, cloth, opium, saltpetre, sugar and silk.
Ques: 4
Who of the following were economic critic/critics of colonialism in India?
Dadabhai Naoroji
G. Subramania Iyer
R. C. Dutt
Select the correct answer using the code given below.
Correct Answer:
(D)
1, 2 and 3
During 1870 to 1905, many Indian intellectuals analyzed the economic aspect of the British rule in India, namely Dadabhai Naoroji, Govind Ranadey, and ICS officer Ramesh Chandra Datta. They wrote the economic history of India. Many other intellectuals also analyzed the economy of India like G.V. Joshi, G. Subramania Iyer, Gopal Krishna Gokhale, Prithvi Chandra Rai, etc. They finally reached the conclusion that colonialism was the main hurdle towards the economic growth of India.
Ques: 5
Who authored the book “Poverty and the Unbritish Rule in India”?
Correct Answer:
(D)
Dadabhai Naoroji
Dadabhai Naoroji with W.C. Bannerji established ‘’London India Society” in 1865 the main purpose of which was to expose Indian plight. He was the first Indian who was elected to British House of Commons on the ticket of Liberal Party. He directly highlighted Indian economic predicaments and propounded “Drain of Wealth Theory” firstly in his short book “Poverty and un-British Rule in India”.
Ques: 6
<p>Consider the following statements and select the correct answer from the code given below the statements:
Assertion (A) : Generally, India had a favourable balance of trade during the British rule.
Reason (R) : The drain of wealth took the form of unrequired exports.
Code :</p>
Correct Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
The constant flow of wealth from India to England for which India did not get an adequate economic, commercial or material return has been described by national leaders and economists as ‘drain’ of wealth from India. Before 1813 company had a recurring surplus which accrued from (a) profits from oppressive land revenue policy (b) profits from its trade resulting from monopolistic control over Indian markets and exactions (c) made by the company’s officials. All this surplus was used by the Company as an “investment”, i.e. for making a purchase of exportable items in India and elsewhere. Against the exports of goods made out of this investment, India did not get anything in return. This system was brought to an end by the charter act of 1813. From 1813 onwards economic drain took the form of ‘unrequited’ exports. Baring a few exceptional years, a favourable balance of trade had been the normal feature of our foreign trade till the outbreak of world war II. Therefore, it is clear that (A) and (R) both are correct and (R) is the correct explanation of (A). Dadabhai Naroji described the drain of wealth as the “evil of all evils” and the leading cause of Indian poverty.