Question

Q. Consider the following statements:

Which of the statements given above is/are incorrect?

• A.
  1 and 2 only
• B.
  2 and 3 only
• C.
  1 only
• D.
  None of the above

Answer 1

The correct option is B

2 and 3 only
Explanation:

Statement 1 is correct: Before the advent of the British rule, though agriculture was the main source of livelihood for most people, yet, the country’s economy was characterised by various kinds of manufacturing activities, particularly handicraft industries in the fields of cotton and silk textiles, metal and precious stone works etc.

Statement 2 is incorrect: British economic policies brought about a fundamental change in the structure of the Indian economy, transforming the country into a supplier of raw materials and consumer of finished industrial products from Britain. Thus, India was turned into a producer of raw material, not finished products.

Statement 3 is incorrect: There was a monopoly of Britain over India’s exports and imports. More than 50% of foreign trade in India was restricted to Britain while the rest of trade was being done with a few other countries like Ceylon (Sri Lanka), China, and Persia (Iran). Thus Although there was a monopoly of British on India’s trade, India was trading with other countries as well.