51. During which period did India follow a policy of Import Substitution Industrialization (ISI)?
a) Pre-1947
b) 1950–1980
c) 1991–2000
d) Post-2014
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Answer: b) 1950–1980 Explanation:
India adopted the Import Substitution Industrialization (ISI) strategy post-independence to develop domestic industries by discouraging imports and promoting self-reliance. From 1950 to 1980, high tariffs, licensing, and protectionist measures were used to nurture the infant industrial sector.
52. Which of the following colonial policies adversely impacted India’s handicraft industry?
a) Land Revenue Settlement
b) Deindustrialization policy
c) Doctrine of Lapse
d) Wood’s Dispatch
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Answer: b) Deindustrialization policy Explanation:
The British deindustrialization policy led to the collapse of India’s traditional handicraft and textile industry. Cheap machine-made goods from England flooded the Indian market, rendering Indian artisans jobless. Dhaka muslin, once world-renowned, nearly disappeared under this pressure.
53. The British economic policy in India primarily aimed at:
a) Social reforms and equity
b) Industrial revolution in India
c) Exploiting Indian resources for British benefit
d) Promoting Indian exports
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Answer: c) Exploiting Indian resources for British benefit Explanation:
The British followed an extractive economic policy, aimed at resource drain and revenue maximization for Britain. They used India as a raw material supplier and market for finished goods, with little concern for domestic development.
54. What was the primary occupation in India during British rule?
a) Manufacturing
b) Mining
c) Agriculture
d) Construction
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Answer: c) Agriculture Explanation:
During colonial rule, over 70% of the population depended on agriculture, largely for subsistence. However, there was minimal investment in irrigation or productivity, leading to frequent famines and rural distress, such as the Great Bengal Famine of 1943.
55. The ‘Drain of Wealth’ theory was propounded by:
a) Dadabhai Naoroji
b) Gopal Krishna Gokhale
c) R.C. Dutt
d) Surendranath Banerjee
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Answer: a) Dadabhai Naoroji Explanation: Dadabhai Naoroji was the first to quantify and criticize the economic exploitation by the British, calling it a “Drain of Wealth”. In his work ‘Poverty and Un-British Rule in India’, he calculated that millions of pounds were transferred annually from India to Britain without adequate returns.
56. The term ‘Dual Economy’ in colonial India referred to:
a) Agriculture and industry operating in coordination
b) Existence of modern and traditional sectors simultaneously
c) Urban and rural unity
d) British and Indian joint ventures
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Answer: b) Existence of modern and traditional sectors simultaneously Explanation:
A dual economy is one where modern sectors (like railways, plantations) coexist with traditional, backward sectors (like subsistence agriculture). In colonial India, modern sectors were often foreign-controlled, while the majority lived in stagnation.
57. The introduction of railways in India by the British was primarily aimed at:
a) Promoting tourism
b) Facilitating export of raw materials
c) Boosting local trade
d) Connecting pilgrimage centers
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Answer: b) Facilitating export of raw materials Explanation:
Britishers built the railways to connect inland areas to ports, ensuring easy transport of cotton, indigo, and other raw materials to the UK. While it did help unify markets, its primary goal was economic exploitation and imperial control.
58. Which of the following sectors saw significant growth under colonial rule?
a) Indian banking
b) Village industries
c) Plantation sector
d) Handloom exports
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Answer: c) Plantation sector Explanation:
The plantation sector (tea, coffee, indigo) expanded under British encouragement. These were cash crop plantations meant for export and often run by British companies, with exploitative labor practices and poor working conditions.
59. Which of the following was not a feature of India’s economy at the time of independence?
a) Heavy dependence on agriculture
b) High share of industrial output in GDP
c) Stagnant per capita income
d) High poverty and unemployment
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Answer: b) High share of industrial output in GDP Explanation:
At independence, India had low industrial output, with the sector contributing only around 10–12% to GDP. The economy was agriculture-dominated, with high poverty, low literacy, and poor health indicators.
60. What was the approximate literacy rate in India at the time of independence in 1947?
a) Around 12%
b) Around 25%
c) Around 40%
d) Around 50%
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Answer: a) Around 12% Explanation:
In 1947, the literacy rate was only about 12%, reflecting the British neglect of mass education. Most educational institutions were meant to serve colonial administrative needs, leaving the vast rural population uneducated.
