Correct Option
The correct option is 2 only.
Explanation
The economic impact of British rule in India is characterized by the systematic de-industrialization of the Indian economy and the commercialization of agriculture. The colonial economic policies were primarily designed to serve the interests of the British industrial base, transforming India’s economic structure from a manufacturing hub to a supplier of raw materials.
Statement-wise Analysis
- Statement 1 is Incorrect. British land revenue systems (such as the Permanent Settlement, Ryotwari, and Mahalwari systems) imposed an extremely high tax burden on the peasantry. The revenue demand was often fixed at a high rate and collected rigidly, regardless of crop failure or famine conditions, leading to widespread rural indebtedness and impoverishment rather than support for small farmers.
- Statement 2 is Correct. Prior to British rule, India was a leading exporter of finished textiles and handicrafts. Colonial policies, including discriminatory tariffs and the promotion of British machine-made goods, dismantled traditional Indian industries. Consequently, India was transformed into a net exporter of raw materials (such as raw cotton, indigo, and jute) to feed British factories and a net importer of finished British manufactured goods.
- Statement 3 is Incorrect. The primary objective of the British Raj was not to make India a self-sufficient industrial power but to maintain it as a colonial appendage. The economic policies were geared towards ensuring India remained a market for British manufactured goods and a source of cheap raw materials, effectively hindering indigenous industrial development.
Key Takeaway
Key Takeaway: The colonial economy fundamentally altered India's trade structure, shifting it from a global exporter of value-added manufactures (textiles) to a supplier of primary raw materials, a process known as de-industrialization.