| Statement I: The economy of India in die 19th century came to a state of ruin under English East India Company. |
| Statement II: 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. |
A) Both the statements are true and the Statement II is the correct explanation of Statement I.
B) Both the statements are true, and Statement II is not the correct explanation of Statement I.
C) Statement I is true, but Statement II is false.
D) Statement II is false, but Statement II is true.
Correct Answer: A
Solution :
Both statements are true and statement II is correct explanation of statement I Britain mined India's previous economy and industries as a result of Britain forcing them to import their goods from Britain and not buy their own goods from India. Industries such as the handmade cloth industry, clock-making, metal and carpentry industries, fell because cloth was made of better quality for cleaner in Britain because of mass production.
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