Correct Option
The correct option is 2 only
Explanation
The economic policies of the British Raj fundamentally transformed the Indian economy into a supplier of raw materials and a market for finished British goods. The agricultural sector, which formed the backbone of the Indian economy, experienced stagnation and deterioration due to exploitative land settlement systems and commercialization policies.
Statement-wise Analysis
- Statement 1 is Incorrect: During the British colonial period, the Indian economy was overwhelmingly agrarian. Historical data indicates that approximately 85 % of the population lived in villages and derived their livelihood directly or indirectly from agriculture. Thus, the engagement was well over 70 %.
- Statement 2 is Correct: British land revenue systems, such as the Permanent Settlement (Zamindari), Ryotwari, and Mahalwari systems, were primarily aimed at maximizing revenue collection for the colonial state. The tax burden on cultivators was notoriously high and rigid, often collected regardless of crop yields, leading to widespread indebtedness and landlessness among small farmers.
- Statement 3 is Incorrect: The colonial government promoted the commercialization of agriculture to supply raw materials (like cotton, jute, and indigo) to British industries. India became a net exporter of raw materials and agricultural products. There was no ban on the export of food grains; in fact, exports often continued even during periods of severe famine and domestic scarcity.
Key Takeaway
The British Raj's impact on Indian agriculture was characterized by high dependency (overcrowding), low productivity, and exploitative revenue demands, coupled with the forced commercialization of crops that prioritized export needs over domestic food security.