Status of Industry before and During British Rule

We know that India was famous for Handicraft industry which was different from Modern Industry of Britishers

Difference Between Handicraft Industry and Modern Industry - Teachoo.JPG

Deindustrialization of Indian Hadicraft Industries & Why Industrial Base of India did not develop - Teachoo.JPG


Industrial Growth of India During British Rule - Teachoo.JPG

De-Industrialisation of Indian Handicraft Industry

British government had systematically destroyed the Indian Handicraft Industry

and no further Industry was allowed to come up

The reason was two-fold:

  1. To get raw materials from India at cheap rates
  2. To sell British goods in India at higher prices

This ensured maximum advantage for their home country


Adverse effects of Decline of Indian Handicrafts Industries

Decline of Handicrafts industries led to downfall of Indian economy in 2 ways:

  1. It led to unemployment on a large scale
  2. The import of machine made goods from Britain increased, as Indian goods were expensive
    so they could not face competition from foreign cheap goods.

Lack of Capital Goods Industries

During British colonial period, there were hardly any capital goods industries present
in India

This further prevented the spread of industrialisation in India.


Limited role of Public Sector

Public sector was not performing to its best of efficiency
This also led to the drawback of Industrial sector

Public sector was only confined to railways, power generation, communications
and some other departments.

MCQ Other Books

Question 1

In the following questions, select the correct answers:

Which industry received the major set back during the colonial rule?

  1. Cement
  2. Paper
  3. Handicraft
  4. Iron and Steel
View Answer

Question 2

Decline of Handicraft industries led to:

  1. Massive unemployment
  2. Import of Finished goods
  3. Export of Finished goods
  4. All of these
View Answer


Question 3

Which of the following is a false statement in context of industrial sector during the British rule?

  1. There was a decline in Handicraft Industries
  2. The British government promoted capital goods industries
  3. Public sector played a significant role
  4. There was low contribution of industries in GDP
View Answer

Question 4

In British India, cloth industry was concentrated at:

  1. Ahmedabad
  2. Hyderabad
  3. Bengaluru
  4. Ghaziabad
View Answer

Question 5

Which of the following statements is not true about the industrial sector at the time of independence?

  1. Industrialization of Indian Handicraft Industry
  2. One sided modern industrial structure
  3. Lack of capital goods industries
  4. Limited operation of public sector
View Answer

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CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo