MCQs on Indian Economy on the Eve of Independence

Indian economy on the eve of independence was primarily an agricultural economy though industries had also started to develop in different parts of the country. Most of the economy was part of the unorganised sector. Most of India’s population during the time of the British Raj were dependent on the primary sector for sustaining their livelihoods. There have been a number of changes in our country since then which have resulted in India becoming an economic powerhouse in today’s times.

We have collated a list of multiple-choice questions on the Indian Economy on the Eve of Independence to help students get a more nuanced understanding of this topic.

1. Which of the following statements is correct about British rule in India?
   1. The literacy rate was high during the British rule in India
   2. The infant mortality rate was high during the British rule in India
   3. The life expectancy rate was high during the British rule in India
   4. The female literacy rate was high during the British rule in India

Answer: b

2. What was the policy of British rulers in India for industrialisation?
   1. The British rulers wanted to make India an importer of both primary and finished goods
   2. The British rulers wanted to make India an exporter of both primary and finished goods
   3. The British rulers wanted to make India an importer of primary goods from Britain and an exporter of finished goods to Britain
   4. The British rulers wanted to make India an exporter of primary goods to Britain and an importer of finished goods from Britain

Answer: d

3. Which of the following statements is true about the occupational structure of the Indian economy during British rule?
   1. The occupational structure of the Indian economy during the British rule was stagnant
   2. The occupational structure of the Indian economy during the British rule was underdeveloped
   3. The occupational structure of the Indian economy during the British rule was both stagnant and underdeveloped
   4. The occupational structure of the Indian economy during British rule was developed

Answer: c

4. What was one of the major contributions of the Britishers to the Indian economy?
   1. The British rule in India saw the construction of several all-weather roads
   2. The British rule in India saw the introduction of the railway network
   3. The British rule in India saw the development of the inland trade and sea lanes
   4. All of the above

Answer: b

5. Which of the following was the main interest of the zamindar during the British rule in India?
   1. The main interest of the zamindar was to produce cash crops
   2. The main interest of the zamindar was to collect rent from the farmers
   3. The main interest of the zamindar was to improve the condition of the agricultural sector
   4. The main interest of the zamindar was to produce food crops

Answer: b

6. Which of the following statements is true about the industrial sector in the Indian economy during the British rule?
   1. India faced an acute shortage of goods that were made within the country
   2. The growth rate for the industrial sector in India was minimal
   3. India was reduced to being an exporter of raw materials
   4. There was a huge increase in cheap imports of goods in India which were manufactured in Britain

Answer: a

7. Which of the following statements reflects the condition of the agricultural sector in India during British rule?
   1. The agricultural sector experienced huge stagnation and deterioration because of the drain of India’s wealth
   2. The agricultural sector experienced huge stagnation and deterioration because of the land tenure system
   3. The agricultural sector experienced huge stagnation and deterioration because of the decline of handicrafts
   4. None of the above

Answer: b

8. Which of the following was the main reason for decline in the handicrafts sector during the British rule in India?
   1. New patterns of the demand for handicrafts
   2. The tariff policy followed by the British
   3. The competition in the sector due to man-made machines
   4. All of the above

Answer: d

9. Which of the following sectors was the major contributor to the Gross Domestic Product (GDP) during the British rule in India?
   1. Primary sector
   2. Secondary sector
   3. Tertiary sector
   4. None of the above

Answer: a

10. Which of the following statements is an accurate description of the Indian economy on the eve of independence?
    1. India was a net exporter of capital goods
    2. India was a net exporter of primary products
    3. India was a net exporter of industrial products
    4. India was a net exporter of agricultural goods

Answer: b

11. In which year were the details about the population in British India collected for the first time?
    1. 1881
    2. 1891
    3. 1871
    4. None of the above

Answer: c

12. Which of the following industries were operating in the Indian economy on the eve of its independence?
    1. Sugar, paper and cement industries
    2. Iron and steel industries
    3. Jute textile and cotton industries
    4. All of the above

Answer: d

13. Which of the following statements correctly reflects the demographic profile of India on the eve of its independence?
    1. India had an average life expectancy of 63 years
    2. Both the birth rate and death rate in India were very low
    3. The overall levels of literacy in India was even less than 16 percent
    4. The infant mortality rate in India was just around 70 per every thousand live births

Answer: c

14. Which of the following services was totally inadequate during British rule in India?
    1. Law and order, railways and ports
    2. Postal services
    3. Railways and ports
    4. None of the above

Answer: b

15. In which year was India’s first official census survey undertaken?
    1. 1881
    2. 1850
    3. 1891
    4. None of the above

Answer: a

Also See:

• Mcq on Central Problems of an Economy
• Meaning of Economic and Non-Economic Activities
• Mcqs on Sectors of the Economy
• Central Problems of Economy Study Material
• Government Budget Meaning and Its Components