ECONOMIC IMPACT OF BRITISH RULE IN INDIA

Question 1

What was the share of India in world economy at the beginning of 18th century and when it got independence?

Answer 1

23 percent at the beginning of 18th century and 3 percent when India got Independence.

Question 2

Cheap and machine made imports flooded the Indian market after the Charter Act of 1813 allowing one way free trade for the British citizens.
Tariffs of nearly ______ percent were imposed on Indian textiles so that Indian cloth could no longer be cheap.

Answer 2

80 percent.

Question 3

Why ship building industry was crushed with the British rule in India?

Answer 3

1. The British ships contracted by the Company were given a monopoly over trade routes.
2. In 1813, a law by the British Parliament prohibited ships below 350 tonnes from sailing between India to Britain.
3. In 1814, another law was passed under which Indian built ships were refused to be considered ‘British registered vessels’.

Question 4

First jute mill came up in ________.

Answer 4

1855 in Rishra (Bengal).

Question 5

The Economic History of India is written by?

Answer 5

Romesh Chandra Dutt.

Question 6

Term Economic Drain means?

Answer 6

• The term ‘economic drain’ refers to a portion of national product of India which was not available for consumption of its peoples, but was being drained away to Britain for political reasons and India was not getting adequate economic or material returns for it.
• The drain of wealth checked and retarded capital formation in India while the same portion of wealth accelerated the growth of British economy. The surplus from British economy re-entered India as finance capital, further draining India of its wealth.

Question 7

Major Components of Economic Drain?

Answer 7

1. Salaries and pensions of civil and military officials.
2. Interests on loans taken by the Indian Government from abroad.
3. Profits on foreign investment in India.
4. Stores purchased in Britain for civil and military departments.
5. Payments to be made for shipping, banking and insurance services which stunted the growth of Indian enterprise in these services.

Question 8

Why according to early nationalists the industrialisation was to be based on Indian and not foreign capital?

Answer 8

Because, according to the early nationalists, foreign capital replaced and suppressed instead of augmenting and encouraging Indian capital. This suppression caused economic drain, further strengthening British hold over India.

Question 9

According to nationalists estimates, the economic drain at that time was—?

Answer 9

1. More than the total land revenue or
2. Half the total government revenue or
3. One third of the total savings (in today’s terms, it amounted to 8 per cent of the national product).

Question 10

What are the three stages of Colonialism as per Rajni Palme Dutt?

Answer 10

1. The period of Mercant Capital (Mercantilism), often described as the Period of Monopoly Trade and Direct Appropriation.
2. Colonialism of Free Trade- started with the Charter Act of 1813.
3. Era of foreigners Investments and International Competition for Colonies.