De-industrialisation of Indian Economy during Colonialism of India MCQs and Answers

1. Why did the British promote deindustrialization in India?

a. To benefit British industry

b. To benefit Indian industry

c. To improve India’s balance of trade

d. To reduce Indian competition in the world market

Answer: a

Explanation: The British promoted deindustrialization in India for a variety of reasons. First, they saw India as a source of raw materials and cheap labour, and they wanted to keep it that way. Second, they were worried about the growing power of the Indian economy and the potential threat it posed to British interests. Finally, they wanted to prevent Indian industry from becoming a competitor to British industry.


2. What was the impact of deindustrialization on India’s economy during colonisation?

a. It caused a rise in India’s unemployment rate

b. It resulted in a decline in India’s exports

c. It increased India’s dependence on imports

d. All of these

Answer: d

Explanation: Deindustrialization had a major impact on India’s economy during colonization. One of the main effects was an increase in unemployment. Many industries that had previously provided jobs for Indians were now gone, leaving them without work. Additionally, deindustrialization led to a decline in India’s exports. This made the country increasingly reliant on imports, further harming the economy. The impact of deindustrialization was felt deeply throughout India and continues to be felt to this day.


3. What was the impact of deindustrialization on India’s society?

a. It led to an increase in poverty

b. It caused social unrest

c. It resulted in the decline of the caste system

d. It led to the rise of the middle class

Answer: a

Explanation: When India’s economy began to liberalize in the late 1980s, the country’s manufacturing sector began to decline. This process of deindustrialization had a profound impact on India’s society.

The decline of manufacturing led to the loss of millions of jobs, particularly in the urban areas where factories were located. This had a devastating impact on the livelihoods of workers and their families. Many factory workers were forced to return to their villages, where they often struggled to find work.

The decline of manufacturing also had a ripple effect on other sectors of the economy. For example, the textile industry, which is closely linked to manufacturing, also began to decline. This had a negative impact on the farmers who provide the raw materials for the industry.

The impact of deindustrialization has been felt most keenly by the poor and marginalized sections of society. The loss of jobs and decline in industries has led to an increase in poverty and social inequality.

The process of deindustrialization is still ongoing in India, and its impact on society is likely to continue for many years to come.


4. How did the British government justify deindustrialization in India?

a. They claimed that it would benefit the Indian people

b. They claimed that it would improve India’s economy

c. They claimed that it was necessary to promote British industry

d. They claimed that it would benefit the world market

Answer: b

Explanation: The British government justified deindustrialization in India by arguing that it was necessary to promote economic development. They claimed that industrialization would lead to greater inequality and poverty, and that it was therefore in the best interests of the people of India to pursue a more agricultural and rural economy.


5. What was the real reason for the British policy of deindustrialization in India?

a. To benefit British industry

b. To benefit Indian industry

c. To improve India’s balance of trade

d. To reduce Indian competition in the world market

Answer: a

Explanation: When the British first arrived in India, they found a thriving economy with a rich tradition of manufacturing and trade. However, over the course of their rule, the British policies of deindustrialization and free trade led to a dramatic decline in India’s economic prosperity.

There are several theories as to why the British pursued these policies. Some believe that the British wanted to keep India as a source of raw materials and cheap labor, while others argue that the British were deliberately trying to undermine India’s economic development.


6. Who was the main beneficiary of deindustrialization in India?

a. The British government

b. The British people

c. The Indian people

d. All of these

Answer: a

Explanation: The British government was the main beneficiary of deindustrialization in India. The process of deindustrialization began during the British rule in India. After the rule ended, the process continued. Deindustrialization adversely affected the Indian economy. It led to the decline of the manufacturing sector and the rise of the service sector. As a result, the employment opportunities in the manufacturing sector declined and the Indian economy became dependent on the service sector.


7. Which of the following was NOT a consequence of deindustrialisation in India during colonialism?

a. Decline in employment

b. Decline in production

c. Increase in exports

d. Increase in imports

Answer: c

Explanation: One of the consequences of deindustrialisation in India during colonialism was the decline in the standard of living of the people. This was caused by the loss of jobs in the traditional industries, as well as by the increased cost of living. Another consequence was the rise in poverty and inequality, as the rich became richer and the poor became poorer. Finally, deindustrialisation also led to the decline of Indian culture and tradition, as the British culture and values began to take root.


8. Why did the British focus on building railways in India?

a. To transport raw materials

b. To transport troops

c. To boost the economy

d. To control the population

Answer: a

Explanation: The British focus on building railways in India was due to a number of factors. Firstly, the British were keen to exploit India’s vast resources, and railways were seen as a key means of doing this. Secondly, the British were keen to assert their control over India, and railways were seen as a key way of doing this. Lastly, the British were keen to improve communications and transportation within India, and railways were seen as a key way of doing this.


9. Why did the British destroy India’s traditional textile industry?

a. To force Indians to buy British textiles

b. To make India reliant on British imports

c. To prevent Indians from competing with British textile manufacturers

d. All of these

Answer: d

Explanation: The British were intent on destroying India’s traditional textile industry for a number of reasons. Firstly, they wanted to establish their own dominance in the world textile market. Secondly, they wanted to make India more dependent on British manufactured goods.

The British began to undercut India’s traditional textile producers by flooding the market with cheap, machine-made cloth. This made it difficult for Indian producers to compete, and many were forced out of business. As a result, India’s once thriving textile industry was decimated.

The British also imposed high tariffs on Indian textiles, making it even more difficult for Indian producers to compete. And finally, the British encouraged the growth of synthetic textile production in India, which further undermined the traditional textile industry.

All of these factors combined to destroy India’s traditional textile industry. The British succeeded in making India a largely dependent country, and in the process, caused immense economic and social damage.


10. Which of the following factors contributed to the deindustrialisation of India?

a. The British introduced new, more efficient technologies that Indian industry could not compete with.

b. The British deliberately destroyed Indian industry in order to make the country dependent on British goods.

c. The British imposed high taxes on Indian manufactured goods.

d. All of the above.

Answer: d

Explanation: The deindustrialisation of India is a complex process that was caused by a variety of factors. The British introduced new, more efficient technologies that Indian industry could not compete with. This had a devastating effect on traditional Indian industries such as textiles and handicrafts. The British also deliberately destroyed Indian industry in order to make the country dependent on British goods. This was done by imposing high taxes on Indian manufactured goods, making them prohibitively expensive. All of these factors contributed to the decline of Indian industry and the deindustrialisation of the country.


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