Q3 (CAPF/2015) History & Culture › National Movement (1857–1947) › Colonial economic impact Answer Verified

Statement I : India’s share of world manufacturing output steadily declined during the 19th and the 20th centuries. Statement I : There was no absolute decline in production in India during the colonial rule.

Both the statements are individually true and Statement II is the correct explanation of Statement I

Both the statements are individually true but Statement II is NOT the correct explanation of Statement I

Statement I is true but Statement II is false

Statement I is false but Statement II is true

Result

Your answer: — · Correct: C

Explanation

Statement I is true as India's share of world manufacturing output plummeted from approximately 25% in 1750 to just 2% by 1900 [6]. This decline continued through the 19th and early 20th centuries due to the collapse of traditional handicraft and artisanal industries [2]. Statement II is false because colonial rule caused an absolute decline in traditional manufacturing production. The influx of cheap British machine-made goods, combined with discriminatory tariffs and the loss of patronage from Indian courts, led to the 'ruin' and 'virtual closing' of major sectors like textiles, iron, and pottery [5]. While modern large-scale industries like cotton and jute mills emerged in the mid-19th century, their slow growth could not compensate for the massive absolute displacement and destruction of the indigenous industrial base [4].

Sources

[1] https://www.lse.ac.uk/Economic-History/Assets/Documents/Research/GEHN/GEHNConferences/conf7/Conf7-Williamson.pdf
[6] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 11: Economic Impact of the British Rule > Ruin of Artisans and Craftsmen > p. 183
[2] https://en.wikipedia.org/wiki/De-industrialisation_of_India
[3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 6: Indian Economy [1947 – 2014] > 6.1 Impact of British Rule on Indian Economy > p. 202
[5] Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 4: The Colonial Era in India > LET'S EXPLORE > p. 100
[4] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > View > p. 543

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Statement I : India’s share of world manufacturing output steadily declined during the 19th and the 20th centuries. Statement I : There was no absolute decline in production in India during the colonial rule.

Explanation

SIMILAR QUESTIONS

Statement I: In the 19th century, India was the largest British colony. Statement I : India became a big market for British manufactured goods and a field of investment for foreign capital in the 19th century.

Statement I : Agriculture in India still accounts for a substantial share in total employment. Statement I : There has been no decline in volatility of agricultural growth in India.

Assertion (A) : During the year 2001 - 02, the value of India’s total exports declined, registering a negative growth of 2.17%. Reason (R) : During the year 2001 - 02, negative growth in exports was witnessed in respect of iron and steel, coffee, textiles and marine products.

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