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Question

Identify the impact of British economic policies on Indian economy.

A
Low level of economic development
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B
agricultural backwardness
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C
Both a and b
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D
None of these
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Solution

The correct option is C Both a and b
The colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton industries. There was very minimal appreciation of the labor forces and compensation of the employees by the colonial regime therefore the workers motivation was very low, with low motivation the workers input will definitely go down low input will obviously lead to lower rates of industrials potential output therefore hindered .

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