British Economic Policies in India (1757-1857 A.D.) - Exam Questions
Part A: Multiple Choice Questions (MCQs)
1. Which of the following best describes the primary goal of British economic policies in India during the period 1757-1857 A.D.?
a) To promote the industrial development of India.
b) To transform India into a supplier of raw materials and a market for British manufactured goods.
c) To ensure equitable distribution of wealth in India.
d) To encourage indigenous Indian trade and commerce.
Answer: b) To transform India into a supplier of raw materials and a market for British manufactured goods.
Rationale: This was the core objective of British mercantilist and later free-trade policies, serving their industrial revolution.
2. The 'Drain of Wealth' theory was primarily propounded by:
a) Lord Dalhousie
b) Lord William Bentinck
c) Dadabhai Naoroji
d) Raja Ram Mohan Roy
Answer: c) Dadabhai Naoroji
Rationale: Dadabhai Naoroji was the most prominent advocate and popularizer of the 'Drain of Wealth' theory.
3. The Permanent Settlement was introduced in 1793 in Bengal, Bihar, and Odisha by:
a) Lord Cornwallis
b) Lord Wellesley
c) Robert Clive
d) Warren Hastings
Answer: a) Lord Cornwallis
Rationale: Lord Cornwallis is credited with the introduction of the Permanent Settlement.
4. Under the Permanent Settlement, who were recognized as the proprietors of the land?
a) Cultivators (Ryots)
b) Village communities (Mahals)
c) Zamindars
d) The British East India Company
Answer: c) Zamindars
Rationale: The Zamindars were made the hereditary owners of the land, responsible for paying a fixed revenue to the Company.
5. The Ryotwari System of land revenue was primarily introduced in which region of India?
a) Bengal and Bihar
b) Punjab and North-Western Provinces
c) Madras and Bombay Presidencies
d) Awadh and Rohilkhand
Answer: c) Madras and Bombay Presidencies
Rationale: The Ryotwari System was predominantly implemented in Southern and Western India.
6. Which of the following was a major consequence of the British commercial policy on Indian industries?
a) Growth of modern Indian industries.
b) De-industrialization and ruin of Indian handicrafts.
c) Increased export of Indian manufactured goods to Britain.
d) Protection for Indian textile industries.
Answer: b) De-industrialization and ruin of Indian handicrafts.
Rationale: The British policy led to the decline of traditional Indian industries due to competition from cheaper British machine-made goods.
7. The construction of railways in India by the British was primarily motivated by:
a) Philanthropic desire to modernize India.
b) To facilitate the movement of raw materials and troops.
c) To promote indigenous Indian trade routes.
d) To provide employment to the Indian population.
Answer: b) To facilitate the movement of raw materials and troops.
Rationale: The primary motivations were strategic (military control) and economic (resource extraction, market access).
8. What were 'Home Charges' in the context of the Drain of Wealth?
a) Costs of maintaining British households in India.
b) Expenses incurred by the Company's administration in Britain, paid from Indian revenues.
c) Taxes paid by British traders in India.
d) Revenue collected from Indian peasants directly by the Company.
Answer: b) Expenses incurred by the Company's administration in Britain, paid from Indian revenues.
Rationale: Home Charges included salaries, pensions, interest on debts, and other administrative costs paid in England from Indian resources.
9. The Mahalwari System of land revenue settlement was prevalent in:
a) Southern India
b) Bengal and Bihar
c) North-Western Provinces and Punjab
d) Coastal regions of Western India
Answer: c) North-Western Provinces and Punjab
Rationale: This system involved revenue settlement with the village community (mahal).
10. Which of the following was NOT a direct consequence of the de-industrialization of India under British rule?
a) Mass migration of artisans to agricultural sector.
b) Increase in urban population due to industrial growth.
c) Decline of traditional Indian cities and trade centers.
d) Increased poverty and unemployment among artisans.
Answer: b) Increase in urban population due to industrial growth.
Rationale: De-industrialization led to ruralization and decline of traditional urban centers, not industrial growth.
11. The introduction of the electric telegraph system in India in the 1850s was primarily for:
a) Public communication services.
b) Administrative and military control.
c) Entertainment purposes.
d) Promoting education.
Answer: b) Administrative and military control.
Rationale: Telegraphs allowed rapid communication for administration, law and order, and military movements.
12. One significant negative impact of the Ryotwari System on the peasants was:
a) It created a class of powerful Zamindars.
b) It led to the breakdown of village communities.
c) It subjected peasants directly to high and rigid revenue demands by the state.
d) It made peasants owners of the land with no tax burden.
Answer: c) It subjected peasants directly to high and rigid revenue demands by the state.
Rationale: Peasants were now directly liable to the state, with high assessments often leading to indebtedness.
13. British commercial policy in the 18th century (early phase) was characterized by:
a) Promoting Indian exports of finished goods.
b) Restricting Indian trade to protect British industries.
c) Following a policy of complete free trade.
d) Investing heavily in Indian manufacturing.
Answer: b) Restricting Indian trade to protect British industries.
Rationale: In the early mercantilist phase, Britain imposed high tariffs on Indian goods to protect its nascent industries.
14. Who coined the term 'Drain of Wealth'?
a) R.C. Dutt
b) M.G. Ranade
c) Dadabhai Naoroji
d) Bipan Chandra
Answer: c) Dadabhai Naoroji
Rationale: While others wrote about it, Dadabhai Naoroji specifically coined and extensively developed the 'Drain of Wealth' theory.
15. What was a major impact of British roads and canals development in India (before 1857)?
a) Primarily for local connectivity and peasant welfare.
b) To facilitate the movement of raw materials from interior to ports and finished goods from ports to interior.
c) To connect pilgrimage sites across the country.
d) To enable large-scale internal migration of labor.
Answer: b) To facilitate the movement of raw materials from interior to ports and finished goods from ports to interior.
Rationale: Infrastructure development was primarily geared towards maximizing economic exploitation and administrative control.
Part B: Short Answer Questions
1. Define the 'Drain of Wealth' theory.
Answer: The 'Drain of Wealth' theory, popularized by Dadabhai Naoroji, posits that a significant portion of India's wealth and resources was transferred to Britain without adequate economic returns to India, impoverishing the country.
2. Name two key features of the British Commercial Policy in India after 1813.
Answer: Two key features were: India was transformed into a supplier of raw materials for British industries, and India became a vast market for finished British manufactured goods (one-way free trade).
3. What was the main purpose behind the construction of railways by the British in India?
Answer: The main purpose was to facilitate the quick and efficient movement of raw materials from the interior to ports, transport finished British goods to the interior markets, and for military and administrative control.
4. Who were 'Zamindars' under the Permanent Settlement?
Answer: Under the Permanent Settlement, Zamindars were recognized as the hereditary owners of the land, responsible for collecting land revenue from cultivators and paying a fixed amount to the British East India Company.
5. List two negative impacts of the Permanent Settlement on the peasants.
Answer: Two negative impacts were: peasants lost their traditional land rights and were reduced to tenants, and they often faced arbitrary rent enhancements and evictions by Zamindars.
6. Which British Governor-General introduced the Ryotwari System?
Answer: Thomas Munro is largely credited with the widespread implementation of the Ryotwari System, though it was initially experimented with earlier.
7. Briefly explain what 'Home Charges' constituted as part of the Drain of Wealth.
Answer: 'Home Charges' were expenses incurred by the British government and East India Company in Britain (e.g., salaries and pensions of British officials, interest on Indian public debt, costs of wars, purchase of stores) that were ultimately paid from Indian revenues.
8. Name the three major land revenue systems introduced by the British in India.
Answer: The three major systems were the Permanent Settlement (Zamindari System), the Ryotwari System, and the Mahalwari System.
9. How did British commercial policy lead to the de-industrialization of India?
Answer: British commercial policy led to de-industrialization by imposing high tariffs on Indian textiles entering Britain, allowing free entry of cheaper British machine-made goods into India, and forcing India to export raw materials instead of finished products, thereby ruining Indian handicraft industries.
10. Mention two ways the development of postal and telegraph services benefited the British administration in India.
Answer: Postal and telegraph services facilitated rapid communication for administrative control, intelligence gathering, and efficient military coordination across the vast Indian subcontinent.
Part C: Long Answer Questions (10 Marks Each)
1. Analyze the major land revenue policies introduced by the British in India between 1757 and 1857 A.D. Discuss their key features and critically evaluate their socio-economic impact on different sections of Indian society.
Answer:
The British introduced various land revenue policies in India, primarily aimed at maximizing revenue collection to finance their administration, army, and trade. The three most prominent systems were the Permanent Settlement, the Ryotwari System, and the Mahalwari System, each with distinct features and far-reaching socio-economic consequences.
I. Permanent Settlement (Zamindari System - 1793):
Key Features: Introduced by Lord Cornwallis in Bengal, Bihar, and Odisha, it recognized Zamindars as the hereditary owners of the land. They were responsible for paying a fixed, permanent amount of land revenue to the British East India Company, which was fixed at 10/11th of the total demand, leaving 1/11th to the Zamindar. The Zamindars could sell or mortgage their land.
Socio-Economic Impact:
On Zamindars: It created a powerful, loyal, and wealthy class of landlords for the British. Many became absentee landlords, uninterested in agricultural improvement. Those who failed to pay the fixed revenue on time lost their Zamindari rights, leading to land sales and new landlords.
On Peasants (Ryots): This system was disastrous for the peasants. They lost their traditional occupancy rights and were reduced to mere tenants-at-will. They faced arbitrary rent enhancements, illegal cesses, and constant fear of eviction by the Zamindars, leading to widespread poverty and agrarian unrest.
On Agriculture: While initially intended to encourage investment, the fixed high demand and lack of interest from absentee landlords often led to agricultural stagnation in many areas.
II. Ryotwari System (Early 19th Century):
Key Features: Introduced primarily in Madras and Bombay Presidencies by figures like Thomas Munro. In this system, the revenue settlement was made directly with the cultivators (ryots), who were recognized as the owners of the land as long as they paid the revenue. The revenue rates were high (often 50% of the produce in dry land and 60% in irrigated land) and were subject to periodic revisions (usually every 20-30 years).
Socio-Economic Impact:
On Peasants: While it eliminated the intermediary Zamindar, peasants were now directly exposed to the high and rigid demands of the state. Failure to pay led to loss of land, indebtedness to moneylenders, and often forced sales. It led to the pauperization of many peasants.
On Agriculture: The high revenue demands left little surplus for investment in agriculture, hindering productivity.
State Control: It increased the direct administrative burden on the state and its officials.
III. Mahalwari System (Early-Mid 19th Century):
Key Features: Introduced by Holt Mackenzie and R.M. Bird in the North-Western Provinces (part of UP), Punjab, and parts of Central India. In this system, the revenue settlement was made with the village community (mahal) as a whole, or with the headman of the village on behalf of the entire community. The revenue demand was revised periodically, usually after 20-30 years, and was often fixed at 66% or 50% of the net produce.
Socio-Economic Impact:
On Village Communities: It recognized and sometimes strengthened the collective responsibility of the village community for revenue payment. However, the high and rigid demand often put immense pressure on the entire village.
On Peasants: Individual peasants within the Mahal were still subjected to internal assessments and often faced similar pressures of high taxation and indebtedness if the village failed to meet its obligations. It did not significantly alleviate their burden compared to the Ryotwari system.
Increased State Interference: The detailed surveys and periodic revisions under this system led to greater state interference in village affairs.
In conclusion, British land revenue policies, despite their varied structures, shared the common objective of extracting maximum revenue from India. They fundamentally altered traditional land ownership patterns, impoverished the vast majority of peasants, created new classes of landlords (loyal to the British), and ultimately contributed to the economic stagnation and agrarian distress that characterized India under Company rule.
2. Explain how the British Commercial Policy led to the de-industrialization of India between 1757 and 1857 A.D. Discuss its long-term consequences for the Indian economy.
Answer:
The British Commercial Policy, especially after the Industrial Revolution in Britain, systematically transformed India from a major global manufacturer into a mere supplier of raw materials and a captive market for British manufactured goods. This process, often termed 'de-industrialization', had devastating consequences for India's traditional industries and its overall economy.
I. Evolution of British Commercial Policy and its Mechanisms:
Mercantilist Phase (Pre-1813): In the early phase, the East India Company's policy was to acquire Indian goods (especially textiles like muslins and calicos, spices, indigo, saltpetre) cheaply and sell them in Europe for high profits. However, even then, the British government sought to protect its nascent textile industry.
Protectionism for British Industry: Laws like the Calico Acts (1700, 1721) banned the import of finished Indian textiles into Britain, while allowing the import of raw cotton for British manufacturers.
Industrial Revolution and Laissez-faire Phase (Post-1813): With the advent of the Industrial Revolution in Britain, British economic policy towards India underwent a fundamental shift, driven by the need for raw materials and markets.
One-Way Free Trade: The Charter Act of 1813 effectively ended the Company's monopoly, allowing free access for all British merchants to India. This led to a policy of 'one-way free trade':
Heavy Duties on Indian Goods: Indian manufactured goods (especially textiles) were subjected to extremely high import duties (up to 70-80%) when entering Britain, making them uncompetitive.
Duty-Free Entry for British Goods: British machine-made goods, particularly textiles, were allowed to enter India virtually duty-free or with very low tariffs. This created an unequal playing field.
Forced Cultivation of Cash Crops: Peasants were often coerced or incentivized to grow cash crops (indigo, cotton, jute, opium) needed by British industries, at the expense of food crops, leading to food scarcity.
Control over Raw Materials: The British ensured a steady supply of cheap raw materials from India for their factories. For instance, Indian cotton, which once fed Indian weavers, was now shipped to Manchester.
II. De-industrialization of India:
The implementation of this commercial policy directly led to the de-industrialization of India:
Ruin of Handicraft Industries:
Textile Industry: India's world-renowned cotton and silk textile industries were the hardest hit. Cheaper, mass-produced British textiles flooded the Indian market, outcompeting the painstakingly hand-made Indian products. Indian weavers, spinners, and dyers, who were once thriving, lost their livelihoods en masse.
Other Industries: Industries like metalwork, pottery, glass-making, tanning, and paper-making also suffered a similar fate due to competition from British factory-made goods.
Loss of Patronage: The decline of princely states and the Mughal court, traditional patrons of high-quality handicrafts, further exacerbated the crisis for artisans.
Ruralization of Artisans: Millions of displaced artisans, left with no alternative employment, were forced to fall back on agriculture, increasing pressure on land and leading to increased poverty in rural areas.
Decline of Traditional Urban Centers: Old manufacturing cities like Dhaka, Murshidabad, and Surat, which were centers of textile and other handicraft production, witnessed a sharp decline in population and prosperity as their industries collapsed.
III. Long-Term Consequences for the Indian Economy:
The de-industrialization had profound and lasting negative consequences:
Impoverishment of India: The outflow of wealth and the collapse of indigenous industries led to widespread poverty and economic stagnation. India, once a rich manufacturing nation, became a poor agricultural colony.
Underdevelopment: India's economy became largely agricultural and primary-product oriented, severely lacking a modern industrial base that could have provided employment and wealth.
Dependence on Britain: India became structurally dependent on Britain for manufactured goods and technology, hindering its own self-reliant development.
Increased Pressure on Agriculture: The displaced artisans swelled the ranks of agricultural laborers and small peasants, leading to increased fragmentation of landholdings and decreased productivity.
Famines: Over-reliance on agriculture and the forced cultivation of cash crops often led to food shortages, exacerbating the impact of famines.
Colonial Exploitation: The entire economic structure was geared towards serving British economic interests, turning India into a classic colonial economy designed for exploitation.
In conclusion, British commercial policy, driven by the imperatives of its industrial revolution, systematically dismantled India's traditional manufacturing base. This process of de-industrialization impoverished millions, transformed India into a dependent colonial economy, and created structural weaknesses that profoundly impacted its long-term development.
3. Discuss the 'Drain of Wealth' theory, explaining its various mechanisms. Also, analyze the development of means of transport and communication (railways, roads, post, telegraph) by the British, highlighting their primary motivations and their actual impact on Indian society.
Answer:
I. The 'Drain of Wealth' Theory:
The 'Drain of Wealth' theory, primarily articulated by early Indian nationalists like Dadabhai Naoroji, R.C. Dutt, and M.G. Ranade, argued that a substantial portion of India's wealth and resources was systematically transferred to Britain without any equivalent economic return. This unrequited transfer, they contended, was the root cause of India's impoverishment and economic backwardness under British rule.
Mechanisms of the Drain:
The drain occurred through several channels:
Home Charges: These were the most significant component. They included:
Salaries and Pensions: Salaries, allowances, and pensions of British civil and military officials serving in India and after their retirement in Britain.
Interest on Public Debt: Interest paid on loans raised by the East India Company (and later the British government) in England to finance its wars of conquest in India and its administrative costs.
Stores Purchase: Costs of purchasing military and civil stores and equipment for India from Britain.
Expenses of India Office: Cost of maintaining the India Office in London.
Profits of British Capitalists: Huge profits reaped by British merchants, traders, bankers, and shipping companies operating in India, which were repatriated to Britain.
Remittances by British Officials: Savings and remittances made by British officials and employees in India, which were sent back to their families in Britain.
Unpaid Exports: India's exports to Britain were often much higher than its imports from Britain, with the difference (the 'unrequited' surplus) effectively representing wealth transferred without corresponding imports or value received by India. This surplus was used to pay for the 'Home Charges' and other expenses in Britain.
Impact of the Drain:
Impoverishment: The continuous outflow of capital drained India's economic vitality, leaving it with insufficient resources for investment in industry, agriculture, and infrastructure.
Capital Depletion: It prevented capital accumulation within India, hindering indigenous industrialization and development.
Economic Stagnation: It contributed to the stagnation of the Indian economy, keeping it primarily agrarian and underdeveloped.
Increased Poverty: Reduced opportunities for employment and wealth creation led to widespread poverty among the masses.
II. Development of Means of Transport and Communication:
The British undertook significant development in transport and communication infrastructure, including railways, roads, postal services, and telegraph. However, their motivations were primarily self-serving.
A. Railways:
Development: First railway line laid in 1853 (Bombay to Thane). Rapid expansion followed.
Primary Motivations:
Economic Exploitation: To facilitate the rapid and cheap transport of raw materials (cotton, jute, coal) from the interior of India to the ports for shipment to Britain.
Market Penetration: To easily transport finished British manufactured goods from ports to the vast interior markets of India.
Military Control: To enable quick deployment of troops and military supplies to suppress rebellions and maintain law and order across the vast empire.
Administrative Control: To facilitate movement of administrative personnel and improve governance.
Investment Avenue: To provide a guaranteed return for British capital invested in railway construction.
Actual Impact on Indian Society (Mixed):
Economic Disruption: While aiding trade, it primarily benefited British commercial interests, further integrating India into the global capitalist system as a colonial appendage. It accelerated the demise of traditional handicrafts by exposing them to cheaper British goods.
Famines: Helped in transporting food grains to famine-affected areas, but often the underlying causes of famine (high revenue, forced cash crops) remained unaddressed.
Social Impact: Facilitated pilgrimage and internal migration for labor, inadvertently bringing people from different regions together and fostering a sense of national unity over time, though this was not an intended consequence.
Technological Transfer: Introduced modern engineering and management techniques, though the benefits primarily accrued to the British.
B. Roads and Canals:
Development: Construction of Grand Trunk Road (re-laid), arterial roads, and some irrigation canals (e.g., Ganga Canal).
Primary Motivations: Similar to railways – for military movement, administrative control, and commercial exploitation (moving agricultural produce and raw materials). Irrigation canals were mainly to ensure revenue stability and increase cultivation of cash crops.
Actual Impact: Improved connectivity for administration and commerce, but often at the expense of local village roads and traditional trade routes. Canals primarily benefited areas growing cash crops for export.
C. Postal and Telegraph Services:
Development: Modern postal system established by Dalhousie (1854). Electric telegraph introduced in 1853.
Primary Motivations:
Administrative Efficiency: Enabled rapid communication between government officials, military commanders, and provinces, greatly enhancing central control.
Law and Order: Crucial for intelligence gathering and responding swiftly to any unrest or rebellion.
Actual Impact: Primarily served British administrative and military needs. Public access was secondary, though it eventually helped connect people across the subcontinent and facilitated the spread of nationalist ideas in later periods.
In conclusion, British economic policies, including land revenue systems, commercial regulations, and infrastructure development, were primarily designed to serve the economic and strategic interests of the British Empire. While some developments like railways and telegraphs brought incidental benefits like improved connectivity, their fundamental motivation was exploitation, contributing significantly to India's economic backwardness and the continuous 'drain of wealth'.
