12th Class Economics Indian Economy On The Eve Of Independence Question Bank Case Based MCQs - Indian Economy on the Eve of Independence

  • question_answer
    Direction: Q. 1 to 5
    Read the following case study and answer the given questions.
    India's economy under the British colonial rule remained fundamentally agrarian about 85 per cent of the country's population lived mostly in villages and derived livelihood directly or indirectly from agriculture.
    However despite such a major occupation, it experienced frequent deterioration and stagnation. This stagnation in the agricultural sector was caused mainly because of the various systems of land settlement that were introduced by the colonial government.
    Agricultural productivity was quite low in terms of production of food crops, however there is a reliable evidence of relatively high yield in cash crops across different parts of the country due to commercialisation of agriculture. But this could hardly help farmers in improving their economic condition as, instead of producing food crops, now they were producing cash crops which were to be ultimately used by British industries back home. Despite some progress made in irrigation, India's agriculture was starved of investment in terracing, flood-control, drainage and desalinisation of soil.
    Which of the following is the main reason explaining high dependence of the workforce in the agricultural sector?

    A) Rampant illiteracy and poverty

    B) A vibrant agricultural sector which can engage a large amount of Indian diaspora

    C) Developing the agrarian base as there were limited employment opportunities in the manufacturing and service sector

    D) All of the above

    Correct Answer: A

    Solution :

    Rampant illiteracy and poverty forced people to take up jobs in the agricultural sector as literacy rate was as low as 16%.


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