Economic Impact of British Rule on India

1. Which one of the following Indian cities was labelled as ‘Urbs Prima i

Which one of the following Indian cities was labelled as ‘Urbs Prima in Indis’ after the opening of the Suez Canal in 1869 and its links with the world economy ?

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Bombay
Madras
Calcutta
Surat
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UPSC CISF-AC-EXE – 2022
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The opening of the Suez Canal in 1869 drastically reduced the sea route distance between Europe and India, significantly boosting trade. Bombay (now Mumbai), located on the west coast, became the primary port city and commercial hub benefiting from this increased connectivity with Europe and the global economy. Its transformation and rapid growth led to it being labelled as ‘Urbs Prima in Indis’, meaning ‘First City in India’.
– The Suez Canal facilitated quicker and more direct trade routes between Britain and India.
– Bombay’s strategic location on the west coast made it the principal beneficiary of this trade boost.
– The city experienced rapid economic growth, urbanization, and became a major financial and commercial centre.
While Calcutta was the capital of British India for a long time and a significant port, the opening of the Suez Canal had a more profound and direct impact on Bombay’s rise as the premier trading port on the western coast, solidifying its commercial pre-eminence.

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2. The first Indian Factories Act was passed in :

The first Indian Factories Act was passed in :

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1858
1861
1881
1905
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The correct answer is C) 1881. The first Indian Factories Act was passed in 1881 during the tenure of Lord Ripon. This Act was a limited measure primarily aimed at regulating the working conditions of child labourers (below 12 years old) in factories employing 100 or more workers.
– The Act was influenced by British textile manufacturers’ pressure to prevent Indian mills from having a cost advantage due to lower labour standards, as well as humanitarian concerns.
– It prohibited the employment of children below 7 years, limited working hours for children between 7 and 12, and mandated a few holidays.
The Act of 1881 was criticized for its limited scope and loopholes. Subsequent Acts (like in 1891, 1911, etc.) were passed to address more aspects of factory work, including the working hours of women and adult men, and safety conditions.

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3. Name the British liberal who was associated with the Manchester School

Name the British liberal who was associated with the Manchester School that was critical of the British rule in India.

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J.S. Mill
Lord Ripon
Fitzjames Stephen
John Bright
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The correct option is D) John Bright.
John Bright was a prominent British liberal politician and a leading figure in the Manchester School, which advocated for free trade and laissez-faire economics. The Manchester School was often critical of British imperial expansion and the associated costs, including the administration of India, arguing that it was expensive and primarily benefited vested interests rather than the British public or Indians. John Bright was a vocal critic of British rule in India, particularly after the 1857 Uprising, and advocated for reforms and eventually self-governance for India.
J.S. Mill was a major liberal philosopher but not typically considered a core member of the Manchester School, though he had complex views on India. Lord Ripon was a liberal Viceroy of India known for implementing reforms, but he was an administrator within the system, not a critic from the Manchester School perspective. Fitzjames Stephen was a legal expert and strongly defended the paternalistic aspects of British rule, often opposing liberal views like those of Ripon.

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4. With reference to revenue collection by Cornwallis, consider the follo

With reference to revenue collection by Cornwallis, consider the following statements :

  • 1. Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities.
  • 2. Under the Permanent Settlement in Bengal, if the Zamindar failed to pay his revenues to the state, on or before the fixed date, he would be removed from his Zamindari.

Which of the statements given above is/are correct ?

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1 only
2 only
Both 1 and 2
Neither 1 nor 2
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The correct option is B.
Statement 1 is incorrect. While the Ryotwari system involved direct settlement with the cultivator (ryot), it often fixed high revenue demands, and exemptions or reductions during bad harvests were not guaranteed and depended on administrative discretion, often leading to hardship.
Statement 2 is correct. The Permanent Settlement introduced by Cornwallis in Bengal included a strict ‘Sunset Clause’. If the Zamindar failed to pay the fixed revenue by the specified date (sunset of the last day of payment), his Zamindari rights were forfeited, and the estate was auctioned off.
The Permanent Settlement (1793) was introduced in Bengal, Bihar, and Odisha. The Ryotwari Settlement was introduced primarily in Madras and Bombay Presidencies by Thomas Munro and others. Another major revenue system was the Mahalwari Settlement in North-Western Provinces, Punjab, and parts of Central India.

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5. Which of the following statements correctly explains the impact of Ind

Which of the following statements correctly explains the impact of Industrial Revolution on India during the first half of the nineteenth century ?

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Indian handicrafts were ruined.
Machines were introduced in the Indian textile industry in large numbers.
Railway lines were laid in many parts of the country.
Heavy duties were imposed on the imports of British manufactures.
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During the first half of the nineteenth century, the Industrial Revolution in Britain had a devastating impact on Indian handicrafts. British manufactured goods, especially textiles produced efficiently by machines, were imported into India and sold at cheaper prices than traditionally made Indian goods. This unequal competition, combined with policies favoring British imports and disadvantaging Indian exports, led to the decline and ruin of indigenous industries, particularly the cotton textile industry, causing widespread unemployment among Indian artisans.
The influx of cheaper, machine-made British goods led to the destruction of traditional Indian handicrafts during the early period of British rule influenced by the Industrial Revolution.
Options B and C describe developments that occurred later in the 19th century, particularly after the 1850s. Option D is incorrect; British policy was generally aimed at facilitating the entry of British manufactures into India with low tariffs, while often imposing high tariffs on Indian goods entering Britain.

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6. Indigo cultivation in India declined by the beginning of the 20th cent

Indigo cultivation in India declined by the beginning of the 20th century because of

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peasant resistance to the oppressive conduct of planters
its unprofitability in the world market because of new inventions
national leaders' opposition to the cultivation of indigo
Government control over the planters
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The primary reason for the decline of indigo cultivation in India by the beginning of the 20th century was the invention and mass production of synthetic indigo dye in Germany in the late 19th century (especially from the 1890s onwards). This synthetic dye was cheaper to produce and of more consistent quality than natural indigo.
The advent of synthetic dyes made natural indigo cultivation economically unviable in the world market, leading to its decline.
Peasant resistance (A), such as the Indigo Revolt of 1859-60, did highlight the exploitative nature of indigo cultivation and led to some reforms, but it did not eliminate cultivation entirely; it continued under modified conditions. National leaders’ opposition (C), particularly Gandhi’s Champaran Satyagraha (1917), addressed the grievances of indigo cultivators but occurred later than the *beginning* of the decline caused by synthetic dyes. Government control (D) aimed at regulating the system rather than ending cultivation. The fundamental economic factor of unprofitability due to synthetic substitutes was the decisive cause for the decline by the early 1900s.

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7. Economically, one of the results of the British rule in India in the 1

Economically, one of the results of the British rule in India in the 19th century was the

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increase in the export of Indian handicrafts
growth in the number of Indian owned factories
commercialization of Indian agriculture
rapid increase in the urban population
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UPSC IAS – 2018
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The correct answer is C) commercialization of Indian agriculture.
British rule in the 19th century significantly restructured the Indian economy, shifting it towards serving British industrial and commercial interests.
One of the most pronounced economic results was the forced commercialization of Indian agriculture. Peasants were increasingly compelled to grow cash crops (like cotton, jute, indigo, tea, opium) for the market, particularly for export to Britain and other parts of the world, rather than primarily growing food grains for local consumption. This policy often led to increased dependence on markets, price fluctuations, vulnerability to famines (as food crop area reduced), and indebtedness among peasants. The export of Indian handicrafts declined due to competition from British machine-made goods and discriminatory policies. Growth in Indian-owned factories was slow and limited compared to the decline of traditional industries. While some urban centers linked to trade grew, a rapid, widespread increase in urban population driven by industrialization was not a defining feature of 19th-century British rule in India.

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8. Who among the following was/were associated with the introduction of R

Who among the following was/were associated with the introduction of Ryotwari Settlement in India during the British rule ?

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  1. Lord Cornwallis
  2. Alexander Read
  3. Thomas Munro

Select the correct answer using the code given below :

1 only
1 and 3 only
2 and 3 only
1, 2 and 3
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UPSC IAS – 2017
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The correct answer is C, which states that Alexander Read and Thomas Munro were associated with the Ryotwari Settlement.
The Ryotwari system was a land revenue system where the British government collected revenue directly from the cultivators (ryots). Alexander Read first experimented with this system in parts of Madras Presidency in the late 18th century, and Thomas Munro later significantly developed and implemented it widely across Madras Presidency and other parts of Southern India in the early 19th century.
Lord Cornwallis is associated with the Permanent Settlement (Zamindari system), which was introduced in Bengal, Bihar, and Orissa, where revenue was collected from Zamindars who were recognized as owners of the land. He was not associated with the Ryotwari system.

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9. Who of the following was/were economic critic/critics of colonialism i

Who of the following was/were economic critic/critics of colonialism in India?

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  • 1. Dadabhai Naoroji
  • 2. G. Subramania Iyer
  • 3. R. C. Dutt

Select the correct answer using the code given below.

1 only
1 and 2 only
2 and 3 only
1, 2 and 3
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All three individuals listed – Dadabhai Naoroji, G. Subramania Iyer, and R. C. Dutt – were prominent economic critics of British colonialism in India.
These figures belonged to the early nationalist phase and extensively analyzed and critiqued the economic impact of British rule. They argued that British policies were designed to extract wealth from India (the “drain of wealth”) and were responsible for India’s poverty and deindustrialization.
Dadabhai Naoroji is famous for propounding the ‘Drain Theory’. R. C. Dutt authored “The Economic History of India under Early British Rule”, a detailed critique of British economic policies. G. Subramania Iyer, a founder of ‘The Hindu’, also wrote extensively on the economic plight of India under British rule. Their work laid the intellectual foundation for economic nationalism and influenced subsequent generations of Indian leaders.

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10. Which one of the following cities on the banks of Ganges declined in i

Which one of the following cities on the banks of Ganges declined in importance when the railway link to Bombay started operating?

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Benaras
Kanpur
Mirzapur
Patna
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The correct answer is C) Mirzapur.
– Mirzapur, located on the Ganges, was historically a significant trading hub, serving as a major river port and an inland trade centre, particularly connecting to Central India.
– With the development of railways linking key inland areas directly to the port of Bombay (now Mumbai), trade routes shifted. The reliance on riverine transport via cities like Mirzapur diminished, leading to a relative decline in its commercial importance compared to its peak period.
– Cities like Benaras (Varanasi), Kanpur, and Patna also have historical importance, but Mirzapur’s specific role as a riverine entrepôt whose significance was directly challenged by the rise of rail links to Bombay is a well-documented aspect of colonial economic history in India.

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