Important Questions Class 12 Economics Chapter 1 – Indian Economy on the Eve of Independence

Important Questions for CBSE Class 12 Economics Chapter 1 Indian Economy on the Eve of Independence, which is outlined by expert Economics teachers from the latest version of CBSE (NCERT) books.

CBSE Class 12 Economics Chapter-1 Important Questions

Question 1

When was the 1st census data compiled during the British Raj?

(a) 1882

(b) 1881

(c) 1981

(d) 1985


(b) 1881

Question 2

What was the life expectancy during British India and what is it today?


As per the Government issued data, life expectancy during British India was 32 years and today it is 68 years.

Question 3

Mention one significance of Suez Canal.


The Suez Canal was opened in the year 1869, which drastically reduced the cost of transportation of the goods between Britain and India.

Question 4

When were the Railways introduced in India?

(a) 1830

(b) 1860

(c) 1853

(d) 1900


(c) 1853

Question 5

What was IMR (Infant Mortality Rate) during British India?


IMR (Infant Mortality Rate) was 218 per 1000 during British India.

Question 6

What is Muslin?


Muslin is considered as one of the best fabrics that are available today. It is the softest and purest fabric across the globe. It originated years ago, and this fabric got the name from a British Indian Port known as Maisolos.

Question 7

In which year did the Iron and Steel industries begin?

  1. 19th Century
  2. 17th Century
  3. 20th Century
  4. 14th Century


(c) 20th Century

Question 8

Which industries were adversely affected during the partition of India?


Textile Industries were adversely affected during the partition of India.

Question 9

What is export surplus?


Export surplus is referred to as the value by which the total amount of goods and services exported by a nation exceeds the total amount of goods and services imported by a nation.

Question 10

When did the commercialisation of agriculture begin in India?


The commercialisation of agriculture began in India during the British Rule.

Question 11

What are the changes railways have brought in India?


The notion of railways was raised in the early 1830s. They had initiated the linking of the 3 ports of Madras, Bombay and Kolkata by a railway line. It has certainly helped India in cracking both the cultural and geographical barriers and the people could travel long distances.

Question 12

Write a note on the Zamindari system in India.


The Zamindari system was introduced by Lord Cornwallis in India, in the year 1793 via the Permanent Settlement Act (PSA). It was introduced in the provinces of Varanasi, Bihar, Bengal and Orissa. The Zamindars were considered and recognised as the landlords as long as they paid the revenue to the East India Company regularly.

British primarily adopted 3 types of land tenure systems which are as follows:

Zamindari system: On an average 19% of the total area under the British rule – Benaras, NWFP divisions, Bihar and Bengal.

Ryotwari system: Covered about 51% of the area under the British rule – Madras, Bombay and Assam.

Mahalwari system: Covered 30% under the British rule – Major parts of NWFP, central provinces and Punjab.

Question 13

Name a few individuals who tried to estimate colonial India’s per capita income.


Some individuals like – Dadabhai Naoroji, R.C. Desai, Shirras, Findlay, V.K.R.V. Rao and William Digby tried to estimate such figures.

Question 14

How did the export surplus lead to an economic drain of wealth during colonial rule?


Export surplus was an instrument to perpetuate the ‘drain of wealth’ from India to Britain. The surplus amount that was earned by India through exports was siphoned off to the colonial British under various expenses such as ‘home charges’ or the military payments or remittances of British residents and officials in India to Britain.

Question 15

What was the percentage (%) of labour that was employed in the manufacturing and service sector in pre-independent India?


10% of the workforce was engaged in manufacturing and 18% was engaged in the service sector.

Question 16

What is GDP?


Gross domestic product (GDP) is the monetary value of all the finished commodities and services manufactured within a nation’s boundaries in a particular time period. Though GDP is normally measured on an annual basis, it can be computed on a quarterly basis as well.

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