SSC History Sample Paper NCERT Sample Paper-6

  • question_answer
    Direction: Following item consists of two statements, one labelled as 'Assertion ' and the other as 'Reason (R)'. You are to examine these two statements carefully and select the answers to these items using the code given below:
    Assertion : Indian Industrial Commission was appointed in 1916.
    Reason (R): This came as a benefit out of the fact that the Tata Iron and Steel Works rendered much service to the British in the War of 1914.

    A)  Both A and R are individually true and R is the correct explanation of A

    B)  Both A and R are individually true but R is not the correct explanation of A

    C)  A is true but R is false

    D)  A is false but R is true

    Correct Answer: C

    Solution :

    [c] Pre-independence industrial development of India. Period I (1850-1914): Industrial development was to a great extent a by-product of certain interrelated developments like improved transport and communications, growth of foreign trade and consequent accumulation of commercial fortunes. Period 11 (1915-139): During this period a number of events occurred that shaped and conditioned the pattern of indus-trial development in India. Among these the more important were: The First World War (1914-18), the post war boom (1919-20), the fluctuating exchange rates (1921-27), the worldwide depression (1929-33), the Congress ministries in many provinces. It was also during this period that the Indian Industrial Commission (1916) with Sir Thomas Holland as Chairman, the Fiscal Commission with Sir Ibrahim Rahimatoola as Chairman, The royal (Whitley) Commission on Labour (1929), the Central Banking Enquiry Committee (1930), the External Capital Committee (1925), and the Taxation Enquiry Committee, were appointed to make a thorough enquiry into respective fields. Period III (1940-1950): The Second World War broke out in 1939. Cotton, jute and steel remained the principal items of war procurement though large orders for ammunition shells gave engineering factories and railway workshops some useful experience of mass production. Those industries which were already in existence worked to full capacity. The major increases were under steel chemicals, paper, and paints; while jute, matches, sugar and wheat flour remained depressed. Up to the First World War, the opposition of the British Government to industrial development in India was open and unconcealed. But the First World War proved an eye opener to them. First, when the war broke out impels from foreign countries had completely ceased and this brought home the need for developing India industrially, Secondly, it was necessary for the British ruler to make certain political and economic concessions and promises of concessions to secure the co-operation of the Indian people during the war and in the disturbed period following the war. The economic concessions took the shape of a proclamation by the Government to the effect that in future industrialisation would be promoted by all means, thirdly, foreign competition had been affecting British import in India. It was felt that the growth of some industries within India was better than foreign competition displacing British Import. These considerations led to the appointment of the Industrial Commission and the Munitions Board. The Munitions Board helped the progress of indigenous industries in various ways such as: (i) A direct purchase of India-made articles and materials of all kinds needed for the army, the civil departments, and the railways; (ii) The diversion of all orders from the United Kingdom and elsewhere to manufacturers in India; and (iii) Assistance to Indian firms in importing plants or technical experts from abroad. In fact the Board gave considerable stimulus to certain established industries like cotton, jute, iron and steel, leather, etc. But once the war and the fear that the British Empire might be endangered were over, the concessions in favour of industries were withdrawn. By the middle of 1920, industries were again subjected to the full force of competition. The Fiscal Commission (1922) recommended a policy of discriminating protection to be administered through an expert body called the Tariff Board. Altogether 13 industries received protection and this enabled a few of them to establish themselves on a sound footing. At the same time, large amounts of British capital were exported to India. For the Indian industries this was an extremely difficult situation. This difficulty was aggravated by the policy of devaluation adopted by the government. The rupee exchange rate was fixed Is. 6d in place of the pre-war rate 1s. 4d. How damaging to the Indian industries these series of blows were can be realised from the fact that market value of the Rs. 100 share of the Tata Iron and Steel Company, an outstanding leader of the Indian capitalist class, tubbed down to Rs.10, and it was compelled to go to the London market for a loan. Tariff policy which gave British products an advantage over non-empire products in the empire market now became the key-note of the tariff system. However, there can be no doubt that in spite of the difficulties and obstacles which India had to face, there was a considerable progress in industrial development during this period. India was placed as one of the eight leading industrialised countries of the world.

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