Consider the following statements regarding the "de-industrialisation" of India: 1. It created a new demand in the Indian consumer market for British goods. 2. It led to the revival and growth of indigenous handicraft industries. 3. It increased the burden of population on the agricultural sector. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation "De-industrialisation" in the context of the Indian economy during British rule refers to the systematic destruction and decline of indigenous traditional handicraft industries, particularly textiles, without the simultaneous development of modern machine-based industries. - Statement 1 is Correct: The influx of cheap, machine-made goods from Britain, facilitated by the development of railways and discriminatory tariff policies (one-way free trade), flooded the Indian market. This replaced domestic products and created a new, captive consumer market for British manufactured goods within India. - Statement 2 is Incorrect: De-industrialisation led to the ruin and collapse of indigenous handicraft industries, not their revival. The loss of royal patronage and the inability to compete with low-cost mass-produced British goods caused the decline of traditional sectors. - Statement 3 is Correct: The artisans and craftsmen displaced from the ruined industries had no alternative employment in a modern industrial sector. Consequently, they were forced to fall back on the land for livelihood, leading to the "ruralisation" of the economy and increasing the population burden on the agricultural sector (overcrowding and disguised unemployment). Key Takeaway: De-industrialisation transformed India from a net exporter of finished goods into a net importer of British manufactures and a supplier of raw materials, while simultaneously overburdening the agricultural sector due to the displacement of artisans.

Consider the following statements regarding the "de-industrialisation" of… - NCERT Class 11 Economics MCQ

NCERT Class 11 Economics — Chapter 1: Indian Economy on the Eve of Independence

mcqmedium

Consider the following statements regarding the "de-industrialisation" of India:

It created a new demand in the Indian consumer market for British goods.
It led to the revival and growth of indigenous handicraft industries.
It increased the burden of population on the agricultural sector.

Which of the statements given above is/are correct?

NCERT textbook question

From NCERT Indian Economic Development · Page 7

Options

A1 and 3 only
B1, 2 and 3
C2 only
D1 and 2 only

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

"De-industrialisation" in the context of the Indian economy during British rule refers to the systematic destruction and decline of indigenous traditional handicraft industries, particularly textiles, without the simultaneous development of modern machine-based industries.

Statement 1 is Correct: The influx of cheap, machine-made goods from Britain, facilitated by the development of railways and discriminatory tariff policies (one-way free trade), flooded the Indian market. This replaced domestic products and created a new, captive consumer market for British manufactured goods within India.
Statement 2 is Incorrect: De-industrialisation led to the ruin and collapse of indigenous handicraft industries, not their revival. The loss of royal patronage and the inability to compete with low-cost mass-produced British goods caused the decline of traditional sectors.
Statement 3 is Correct: The artisans and craftsmen displaced from the ruined industries had no alternative employment in a modern industrial sector. Consequently, they were forced to fall back on the land for livelihood, leading to the "ruralisation" of the economy and increasing the population burden on the agricultural sector (overcrowding and disguised unemployment).

Key Takeaway:
De-industrialisation transformed India from a net exporter of finished goods into a net importer of British manufactures and a supplier of raw materials, while simultaneously overburdening the agricultural sector due to the displacement of artisans.

Your note

More from Chapter 1: Indian Economy on the Eve of Independence

The "invisible items" in the context of India's balance of payments during the colonial period referred to:

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With reference to the industrial sector during the colonial period, consider the following statements: 1. The decline of indigenous handicraft industries created massive unemployment in India. 2. The cotton textile mills were mainly dominated by foreigners and located in Bengal. 3. The jute mills were mainly dominated by Indians and located in western India. Which of the statements given above is/are correct?

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With reference to the agricultural sector under British rule, consider the following statements: 1. The agricultural sector experienced absolute stagnation with no growth in the aggregate area under cultivation. 2. The stagnation was caused mainly by the land settlement systems introduced by the colonial government. 3. Low levels of technology and negligible use of fertilisers contributed to low productivity. Which of the statements given above is/are correct?

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The primary motive of the colonial government’s policy of systematically de-industrialising India was:

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With reference to the railways, consider the following statements: 1. It restricted people from undertaking long-distance travel. 2. It adversely affected the self-sufficiency of village economies. 3. It fostered the commercialisation of Indian agriculture. Which of the statements given above is/are correct?

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