Statement I : The economy of India in the 19th century came to a state of ruin under the English East India Company. Statement I : The English East India Companys acquisition of Diwani right led to the miseries of the peasants and those associated with th

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Q: 48 (CAPF/2012)

Statement I : The economy of India in the 19th century came to a state of ruin under the English East India Company.
Statement I : The English East India Company’s acquisition of Diwani right led to the miseries of the peasants and those associated with the traditional handicrafts industry of India.

question_subject: 

History

question_exam: 

CAPF

stats: 

0,59,20,59,16,2,2

keywords: 

{'english east india company': [1, 0, 3, 2], 'diwani': [0, 0, 3, 2], '19th century': [3, 0, 1, 10], 'india': [8, 1, 7, 13], 'economy': [1, 3, 8, 35], 'traditional handicrafts industry': [0, 0, 0, 2], 'acquisition': [1, 0, 2, 7]}

Option 1 states that both statements are individually true and that statement II is the correct explanation of statement I.

Statement I claims that the economy of India in the 19th century was in a state of ruin under the English East India Company. This can be supported by historical evidence which shows that India`s economy suffered greatly under the control of the company, with exploitative trade policies and the draining of resources from the country.

Statement II claims that the English East India Company`s acquisition of the Diwani right led to the miseries of the peasants and those associated with the traditional handicrafts industry of India. The Diwani right refers to the company`s control over the collection of revenue in Bengal, Bihar, and Orissa. This control allowed the company to extract a large portion of the revenues, causing financial hardships for the peasants and impacting the traditional handicrafts industry.

Option 1 states that statement II is the correct explanation of statement I. This implies that the economic ruin mentioned in statement I can be attributed to the acquisition of the Diwani right described in statement II. This connection can be supported by historical evidence, making option 1 the correct answer.

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