Status of Indian Economy at Time of Independence

Britishers were more interested in

Economic Interest of their home country

Not concerned with Indian Economic Development

Impact of these policies:

1 Agriculture Sector

It had extremely low productivity

It also had surplus labor (More people were working in fields than required)

2 Industrial Sector

There was need for

Modernization(Machines used were outdated)

Diversification (Manufacturing was limited to some specific goods)

Capacity Building (Machines were of low capacity and good not produce goods in bulk)

Increased Public Investment (Investment of Government was required to set up large scale industries)

3 Infrastructure

Infrastructure was inadequate

It needed expansion and upgradation

4 Poverty and  Unemployment

There was large scale poverty and unemployment

There was need for Public Welfare in Govt Economic Policy

1 Agriculture Sector

It had extremely low productivity

It also had surplus labor (More people were working in fields than required)

2 Industrial Sector

There was need for

Modernization(Machines used were outdated)

Diversification (Manufacturing was limited to some specific goods)

Capacity Building (Machines were of low capacity and good not produce goods in bulk)

Increased Public Investment (Investment of Government was required to set up large scale industries)

3 Infrastructure

Infrastructure was inadequate

It needed expansion and upgradation

4 Poverty and  Unemployment

There was large scale poverty and unemployment

There was need for Public Welfare in Govt Economic Policy

Positive contributions by Britishers:

1 Self-sufficiency in food grain production

Britishers initiated commercialization of agriculture that helped in achieving self-sufficiency in food grain production

2 Better means of Transportation

Development of roads and railways provided a cheap and rapid means of transport

This also increased the social and economic growth

3 Check on Famines

Roads and railways helped in the transportation of food grains thought the country

This helped in keeping a check on famines

4 Shift to Monetary Economy

Indian economy shifted from a Barter economy to a Monetary economy under the British rule

5 Effective Administration setup

British government had an effective administration system

This was further used by Indian politicians

C. Excellent Industrial Sector

Explanation

The Industrial sector was not excellent, rather it needed attention in many areas.

There was need for :

1. Modernization(Machines used were outdated)
2. Diversification (Manufacturing was limited to some specific goods)
3. Capacity Building (Machines were of low capacity and good not produce goods in bulk)
4. Increased Public Investment (Investment of Government was required to set up large scale industries)

Rest, all the points are correct

A. Agriculture sector was highly unproductive

C. Industrial sector had outdated machinery

Explanation

These 2 points are true in terms of Status of Indian economy on the eve of Independence.

The Infrastructure was highly inadequate

It needed expansion and upgradation

And, there was widespread unemployment

There was need for Public Welfare in Govt Economic Policy

D. All of the above.

Explanation

During British period, Indian Economy had all the above features

There were 2 systems introduced in India, the Feudal system and Capitalist system

It was divided into 2 different countries

It was under the colonial British rule

D. 4 – (d)

Explanation

Britishers during their rule developed infrastructure in various areas like railways, post, telegraph etc.

However, the real intension behind these developments was to serve their own colonial interest.