Consider the following statements regarding the state of the Indian economy prior to British rule: 1. The economy was primarily agrarian with a large majority of the population engaged in agriculture. 2. India had no significant tradition of handicraft industries prior to British rule. 3. Indian products enjoyed a worldwide market due to their high standards of craftsmanship. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation The structure of the Indian economy prior to British colonial rule was characterized as an independent, self-reliant economy. While fundamentally agrarian, it possessed a highly developed and globally recognized manufacturing sector, particularly in handicrafts. - Statement 1 is Correct: The pre-colonial Indian economy was primarily agrarian. A vast majority of the population, estimated at around 85 %, lived in villages and derived their livelihood directly or indirectly from agriculture. - Statement 2 is Incorrect: India had a rich and extensive tradition of handicraft industries before British rule. The country was well-known for its excellence in the manufacturing of cotton and silk textiles, as well as metal and precious stone works. It was not merely an agrarian economy but a manufacturing hub for specific high-value goods. - Statement 3 is Correct: Indian products enjoyed a worldwide market and a high reputation. This global demand was driven by the fine quality of materials used and the high standards of craftsmanship evident in Indian manufactures, particularly textiles (such as Muslin of Dhaka). Key Takeaway: Pre-British India was characterized by a dual economic structure: a dominant agrarian base complemented by a flourishing, export-oriented handicraft industry known for its quality and craftsmanship.

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

mcqeasy

Consider the following statements regarding the state of the Indian economy prior to British rule:

The economy was primarily agrarian with a large majority of the population engaged in agriculture.
India had no significant tradition of handicraft industries prior to British rule.
Indian products enjoyed a worldwide market due to their high standards of craftsmanship.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

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

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

The structure of the Indian economy prior to British colonial rule was characterized as an independent, self-reliant economy. While fundamentally agrarian, it possessed a highly developed and globally recognized manufacturing sector, particularly in handicrafts.

Statement 1 is Correct: The pre-colonial Indian economy was primarily agrarian. A vast majority of the population, estimated at around 85 %, lived in villages and derived their livelihood directly or indirectly from agriculture.
Statement 2 is Incorrect: India had a rich and extensive tradition of handicraft industries before British rule. The country was well-known for its excellence in the manufacturing of cotton and silk textiles, as well as metal and precious stone works. It was not merely an agrarian economy but a manufacturing hub for specific high-value goods.
Statement 3 is Correct: Indian products enjoyed a worldwide market and a high reputation. This global demand was driven by the fine quality of materials used and the high standards of craftsmanship evident in Indian manufactures, particularly textiles (such as Muslin of Dhaka).

Key Takeaway: Pre-British India was characterized by a dual economic structure: a dominant agrarian base complemented by a flourishing, export-oriented handicraft industry known for its quality and craftsmanship.

Your note

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

Consider the following statements regarding the demographic profile of India: 1. The second stage of demographic transition began only after the 1951 Census. 2. Before 1921, neither the total population nor the rate of population growth was very high. Which of the statements given above is/are correct?

medium

With reference to the public health facilities during the colonial period, consider the following statements: 1. They were available to the majority of the population. 2. Water and air-borne diseases were rampant. 3. The overall mortality rate was very high. Which of the statements given above is/are correct?

easy

Consider the following statements regarding the textile industry in Bengal: 1. Daccai Muslin was a coarse cotton textile with no international demand. 2. The finest variety was known as 'malmal'. 3. It was exclusively used by the British royalty. Which of the statements given above is/are correct?

medium

The two-fold motive behind the systematic de-industrialisation of India was to: 1. Make India a supplier of raw materials. 2. Make India a net exporter of finished industrial products. 3. Prevent India from becoming a competitor in the industrial sector. Which of the statements given above is/are correct?

easy

Which of the following statements accurately describes the "drain of wealth" mechanism?

medium

Keep practising Chapter 1: Indian Economy on the Eve of Independence

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The correct option is 1 and 3 only.

Explanation

Statement 1 is Correct: The pre-colonial Indian economy was primarily agrarian. A vast majority of the population, estimated at around 85 %, lived in villages and derived their livelihood directly or indirectly from agriculture.
Statement 2 is Incorrect: India had a rich and extensive tradition of handicraft industries before British rule. The country was well-known for its excellence in the manufacturing of cotton and silk textiles, as well as metal and precious stone works. It was not merely an agrarian economy but a manufacturing hub for specific high-value goods.
Statement 3 is Correct: Indian products enjoyed a worldwide market and a high reputation. This global demand was driven by the fine quality of materials used and the high standards of craftsmanship evident in Indian manufactures, particularly textiles (such as Muslin of Dhaka).