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Q81 (CDS-II/2014) History & Culture › Modern India (Pre-1857) › Colonial economic impact Answer Verified

Under the forceful thrust of British rule, a rapid transformation of the Indian economy took place. In this context, which of the following statements is /are correct ? i 1. Indian economy was transformed into a colonial economy in the 19th century whose- structure was deter- mined by Britain’s fast developing industrial economy. 2. The influx of cheap Indian products into England gave a great blow to English textile industries. 3. The 19th century saw the collapse of the traditional Indian village economy and fresh economic alignment along commercial lines. Select the correct answer using the code given below:

Result
Your answer: —  ·  Correct: A
Explanation

The Indian economy was transformed into a colonial economy during the 19th century, where its structure and operations were subserviently integrated into the world capitalist system to suit British industrial interests [5]. Statement 1 is correct as Britain forced a division of labour where India provided raw materials for Britain's high-productivity industrial economy [3]. Statement 2 is incorrect; it was actually the influx of cheap British machine-made goods into India that ruined Indian textiles, while Britain imposed high import duties to block Indian products [4]. Statement 3 is correct because the 19th century witnessed the collapse of the traditional village economy as artisans were ruined and forced into agriculture, leading to a new economic alignment where Indian production was commercialized to serve the British market [3]. This structural shift led to the 'deindustrialization' of India and the fragmentation of land holdings [4].

Sources

  1. [3] 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
  2. [5] 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
  3. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 6: Indian Economy [1947 – 2014] > 6.1 Impact of British Rule on Indian Economy > p. 201
  4. [2] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Economic Impact of British Rule in India > p. 541
  5. [4] 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
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