Which of the following were consequences of the decline of the indigenous handicraft industries? 1. Massive unemployment in India. 2. It led to an oversupply of locally made goods in the domestic market. 3. Increased demand for British manufactured goods.

Correct Option The correct option is 1 and 3 only. Explanation The decline of indigenous handicraft industries in India was a direct result of the systematic de-industrialization policy pursued by the British colonial administration. The primary objective was to reduce India to a mere exporter of raw materials and a consumer of finished industrial products from Britain. Statement-wise Analysis - Statement 1 is Correct: The collapse of the traditional handicraft sector resulted in the displacement of a vast number of artisans and craftsmen. Since the modern industrial sector was not sufficiently developed to absorb this workforce, it led to massive unemployment and underemployment. These displaced artisans were forced to fall back on agriculture, increasing the burden on land. - Statement 2 is Incorrect: The decline of handicrafts was caused by the influx of cheap, machine-made goods from Britain. Consequently, the domestic market faced an oversupply of British manufactured goods, not locally made goods. The production of local goods shrank because they could not compete with the lower prices of imported machine-made products. - Statement 3 is Correct: The colonial trade policy, characterized by duty-free imports of British goods and heavy tariffs on Indian exports, made British products cheaper in the Indian market. This price advantage, coupled with changing consumer tastes, led to a significant increase in demand for British manufactured goods at the expense of domestic products. Key Takeaway Key Takeaway: The decline of Indian handicrafts led to structural unemployment (de-industrialization) and the "ruralization" of the economy, transforming India into a market for British finished goods and a supplier of raw materials.

Which of the following were consequences… - NCERT Class 11 Economics MCQ

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

mcqmedium

Which of the following were consequences of the decline of the indigenous handicraft industries?

Massive unemployment in India.
It led to an oversupply of locally made goods in the domestic market.
Increased demand for British manufactured goods.

NCERT textbook question

From NCERT Indian Economic Development · Page 7

Options

A2 only
B1, 2 and 3
C1 and 2 only
D1 and 3 only

Did you get this right?

Solution

Correct Option

The correct option is 1 and 3 only.

Explanation

The decline of indigenous handicraft industries in India was a direct result of the systematic de-industrialization policy pursued by the British colonial administration. The primary objective was to reduce India to a mere exporter of raw materials and a consumer of finished industrial products from Britain.

Statement-wise Analysis

Statement 1 is Correct: The collapse of the traditional handicraft sector resulted in the displacement of a vast number of artisans and craftsmen. Since the modern industrial sector was not sufficiently developed to absorb this workforce, it led to massive unemployment and underemployment. These displaced artisans were forced to fall back on agriculture, increasing the burden on land.
Statement 2 is Incorrect: The decline of handicrafts was caused by the influx of cheap, machine-made goods from Britain. Consequently, the domestic market faced an oversupply of British manufactured goods, not locally made goods. The production of local goods shrank because they could not compete with the lower prices of imported machine-made products.
Statement 3 is Correct: The colonial trade policy, characterized by duty-free imports of British goods and heavy tariffs on Indian exports, made British products cheaper in the Indian market. This price advantage, coupled with changing consumer tastes, led to a significant increase in demand for British manufactured goods at the expense of domestic products.

Key Takeaway

Key Takeaway: The decline of Indian handicrafts led to structural unemployment (de-industrialization) and the "ruralization" of the economy, transforming India into a market for British finished goods and a supplier of raw materials.

Your note

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