IED CHAPTER 1

• Which battle laid the foundation of the British Empire in India in 1757?


  Battle of Plassey
• What was the primary aim of British rule concerning the Indian economy?

  To use it as a feeder economy
• In what year did India gain independence from British rule?

  1947
• To understand India's current economic status, what must we comprehend?

  Factors that led to underdevelopment and stagnation
• Before British rule, what characterized the Indian economy?

  Independent, self-reliant and prosperous
• What proportion of the Indian population was engaged in agriculture before British rule?

  About two-thirds
• Before British rule, for what type of industries was India well known?

  Handicraft industries
• Which type of cotton textile originated in Bengal and gained worldwide fame?

  Muslin
• What was the finest variety of muslin called?

  Malmal
• What was the primary focus of the British Government's economic policies in India?

  Protection and promotion of their own interests
• What did the British policies transform India into?

  A supplier of raw materials and consumer of finished goods
• What is the definition of colonialism?

  Political and social relations between two countries
• In a colonial relationship, what does the ruling country determine?

  Economic policies of the dominated country
• In the context of British rule, what resulted in India's underdevelopment?

  The unequal relationship between India and Britain
• What data is generally used to judge the economic condition of a nation?

  National income and per capita income
• What was the main reason that the British Government's did not collect data on the Indian economy?

  No sincere attempt was made
• Which experts made individual attempts to estimate India's national and per capita income?

  Dadabhai Naoroji, William Digby, Findlay Shirras
• Whose estimates of national and per capita incomes were considered very significant?

  1. Rao's
• What was the approximate growth of aggregate real output during the first half of the 20th century?

  Less than 2%
• What was the approximate growth in per capita output per year during the first half of the 20th century?

  0.5%
• How was India's economy characterized under British colonial rule?

  Overwhelmingly rural and agricultural
• Approximately what percentage of the country's population lived in villages during British rule?

  Nearly 85%
• Despite a large proportion of the population in agriculture, what was a challenge during British rule?

  The country was not self-sufficient
• What was the most important reason for stagnation in the agricultural sector?

  The introduction of Zamindari System
• Under the Zamindari system, where did profits from the agricultural sector go?

  To the zamindars
• Under the Zamindari system, what was the main interest of the zamindars?

  To collect lagaan
• Under the Zamindari system, what would happen if zamindars failed to deposit specified sums of legaan?

  They would lose their rights
• Who introduced the Zamindari System?

  Lord Cornwallis
• In what year was the Zamindari system introduced?

  1793
• What was the basic aim for starting the Zamindari system?

  To increase the revenue
• Under the Zamindari system, who were recognized as owners of the land?

  Zamindars
• How did the Zamindari system function?

  As intermediaries
• What negative impact did the Zamindari system have on farmers?

  They were not left with enough food
• What is meant by 'Commercialisation of Agriculture'?

  Production of crops for sale
• During British rule, why were farmers given higher prices for cash crops?

  To be used by British industries
• What was the result of British rule promoting a shift from food crops to cash crops?

  Commercialisation of Agriculture
• What did the commercialization of agriculture result in?

  Frequent famines in India
• Why did British industrialists attract Indian peasants to produce commercial crops?

  To keep their factories running
• What was India forced to do with food grains under British rule?

  Export food grains
• How did commercialization of Indian agriculture affect village economies?

  Adversely affected the self-sufficiency