Indian Economy Under British Rule

Questions and Answers

What percentage of India's population is directly dependent on agriculture for living?

30%

47% (correct)

60%

25%

Which crop is NOT mentioned as a major producer by India?

Maize (correct)

Wheat

Rice

Cotton

What was the estimated Gross Value Added by the agriculture and allied sector in 2021-22?

18.8% (correct)

20.5%

25.1%

15.3%

Which product did India emerge as the world's largest producer of?

Milk Signup and view all the answers

What was the growth rate of the Indian livestock sector during the last decade (2010-19)?

6.6% Signup and view all the answers

Which category had the index number above 140 in agricultural production for 2021-22?

All crops Signup and view all the answers

What was the food grains production in India for the year 2021-22?

315.7 million tonnes Signup and view all the answers

What was the recorded growth rate of agriculture in the economic survey for 2022-23?

3.5% Signup and view all the answers

What significant change was made to the Foreign Investment Promotion Board (FIPB) in 2017?

It was abolished and replaced with the Foreign Investment Facilitation Portal. Signup and view all the answers

What percentage increase did FDI experience after the introduction of the Foreign Investment Facilitation Portal?

39% Signup and view all the answers

Which program was established to aid in innovation and entrepreneurship in India?

Start-up India Programme. Signup and view all the answers

What does the Remission of Duties and Taxes on Export Products (RoDTEP) aim to replace?

Merchandise Exports from India Scheme (MEIS). Signup and view all the answers

Which policy provides preference to locally manufactured goods in public procurement?

Public Procurement (Preference to Make in India) Order, 2017. Signup and view all the answers

What was the improvement in India's rank in the Global Innovation Index from 2015 to 2022?

From 81st to 40th. Signup and view all the answers

What is the focus of the National Logistics Policy (NLP)?

Establishing a framework for the Logistics Sector. Signup and view all the answers

Which sector allows 100% FDI under the automatic route?

Coal mining activities. Signup and view all the answers

Which period marks the rule of the East India Company over India?

1757 to 1858 Signup and view all the answers

What is the purpose of the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

To offer financial support for crop loss or damage Signup and view all the answers

What was the primary impact of British rule on India’s foreign trade?

India shifted from being an exporter of manufactures to an exporter of raw materials. Signup and view all the answers

Which measure aims to promote sustainable farming through organic practices?

Paramparagat Krishi Vikas Yojana (PKVY) Signup and view all the answers

What effect did heavy tariffs on Indian exports have on domestic manufacturers?

It made finished goods more expensive, reducing their demand. Signup and view all the answers

What does the Per Drop More Crop (PDMC) scheme focus on?

Enhancing water use efficiency at the farm level Signup and view all the answers

Which of the following best describes the impact of the industrial revolution in Britain on India's economy?

It reversed India's role from a manufacturer to a supplier of raw materials. Signup and view all the answers

What cultural shift occurred among the Indian consumers during British rule?

An affiliation with Western culture and goods. Signup and view all the answers

What is the primary goal of the Agri Infrastructure Fund?

To finance post-harvest management projects Signup and view all the answers

Which initiative is designed to create a unified market for agricultural commodities?

E-NAM Signup and view all the answers

How did British policies adversely affect Indian handicrafts?

They were undermined by competition from machine-made goods. Signup and view all the answers

Which economic structure was primarily disrupted due to British colonial policies?

The traditional village economy. Signup and view all the answers

What economic support do farmers receive through the PM KISAN program?

Direct cash transfers to support income Signup and view all the answers

What does the Mission for Integrated Development of Horticulture (MIDH) focus on?

Holistic growth of the horticulture sector Signup and view all the answers

What consequence did the shift in demand patterns among Indian consumers have?

Destruction of the established production structure. Signup and view all the answers

What is a primary concern regarding Indian agriculture today?

Dominance of small and medium farmers Signup and view all the answers

What percentage of total FDI equity inflows into India was accounted for by the services sector?

60 per cent Signup and view all the answers

Which country is the seventh largest recipient of FDI among the top 20 host countries in 2021?

India Signup and view all the answers

What was the total amount of FDI inflows received by India in 2021-22?

US$ 84.8 billion Signup and view all the answers

Which sector was allowed 100 percent foreign participation through the Automatic Route?

Telecommunication services Signup and view all the answers

To what percentage was the FDI ceiling in insurance companies raised?

74 per cent Signup and view all the answers

What recent global challenge did India face, as noted in the India Development Update of November 2022?

Russia-Ukraine war Signup and view all the answers

What percentage did India's real GDP grow by in the July-September period of 2022-23?

6.3 percent Signup and view all the answers

Why is India's economy considered more insulated from global spillovers than other emerging markets?

Reliance on domestic market Signup and view all the answers

Study Notes

British Rule and Economic Impact in India

British colonial rule in India is divided into two periods: East India Company rule (1757-1858) and British government rule (1858-1947).
The Industrial Revolution in Britain heightened demand for raw materials, transforming India from an exporter of finished goods to an exporter of raw materials.
Discriminatory tariff policies led to high costs for Indian finished goods, resulting in loss of competitiveness against cheaper imports.
The decline of Indian handicrafts due to imperial policies and competition from machine-made goods had significant adverse economic and social consequences.
Traditional village economies, which integrated agriculture and handicrafts, were disrupted, leading to structural damages.

Agricultural Production and Market Position

India is the world’s largest producer of milk, pulses, jute, and spices, and has the largest area planted under wheat, rice, and cotton.
It ranks as the second-largest producer of various agricultural products, including fruits, vegetables, tea, and sugarcane.
The retail sector drives 70% of the Indian food and grocery market, making it the world’s sixth largest.
India has the largest cattle herd globally and attained a livestock growth rate of 6.6% from 2010 to 2019.

Economic Contribution of Agriculture

Approximately 47% of India’s population relies on agriculture for their livelihood.
The Gross Value Added (GVA) by agriculture was 18.8% for the fiscal year 2021-22, indicating its continued importance despite declining shares in overall GVA.
Food grains production peaked at 315.7 million tonnes in 2021-22, showcasing a sustained increase in agricultural output.

Recent Developments and FDI in Agriculture

Government initiatives, including PM KISAN and Minimum Support Price (MSP) policies, support farmer income and rural development.
The National Logistics Policy (NLP) aims to enhance the logistics sector, while the Start-up India Programme promotes innovation.
FDI reforms have simplified approval processes, resulting in a 39% increase in foreign investments since the introduction of the Foreign Investment Facilitation Portal.
The Remission of Duties and Taxes on Export Products (RoDTEP) was established to boost exports by offering rebates on various taxes.

Challenges and Innovations in Indian Agriculture

Indian agriculture faces challenges, particularly the predominance of small and medium farmers.
E-NAM, a national electronic trading portal, aims to unify the agricultural market.
Kisan Rail improves logistics for agricultural products, while various schemes promote mechanization and crop insurance.

Conclusion and Future Outlook

Despite external challenges from global events like the Russia-Ukraine war, the Indian economy showed resilience with a 6.3% real GDP growth rate in mid-2022.
India’s economy is relatively less exposed to international trade fluctuations due to its large domestic market, positioning it favorably among emerging economies.

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Description

Explore the impact of British colonialism on India's economy during two significant periods: the East India Company's rule from 1757 to 1858 and the British government from 1858 to 1947. This quiz covers key events, economic changes, and the legacy of colonialism in shaping modern India.