{"id":89519,"date":"2025-06-01T10:06:14","date_gmt":"2025-06-01T10:06:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89519"},"modified":"2025-06-01T10:06:14","modified_gmt":"2025-06-01T10:06:14","slug":"statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/","title":{"rendered":"Statement I :\nThe economy of India in the 19th century came to a state"},"content":{"rendered":"

Statement I :
\nThe economy of India in the 19th century came to a state of ruin under the English East India Company.
\nStatement II :
\nThe 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.<\/p>\n

[amp_mcq option1=”Both the statements are individually true and Statement II is the correct explanation of Statement I” option2=”Both the statements are individually true but Statement II is not the correct explanation of Statement I” option3=”Statement I is true but Statement II is false” option4=”Statement I is false but Statement II is true” correct=”option1″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2012<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nBoth Statement I and Statement II are individually true, and Statement II is the correct explanation of Statement I. Statement I is true because the economic policies of the English East India Company, particularly in the 19th century, systematically exploited India’s resources and labour for the benefit of Britain, leading to de-industrialization, drain of wealth, and widespread poverty, thus ruining the Indian economy. Statement II provides a key mechanism through which this ruin occurred. The acquisition of Diwani rights in Bengal (1765) gave the EIC control over revenue collection. This led to excessive revenue demands on peasants, impoverishing them. Simultaneously, the EIC’s trade policies, designed to promote British manufactured goods and suppress Indian textiles and handicrafts, devastated traditional Indian industries, leading to unemployment and misery for artisans. Thus, the miseries caused by the Diwani right directly contributed to the overall ruin of the Indian economy described in Statement I.
\n<\/section>\n
\nThe English East India Company’s policies, especially after gaining Diwani rights, led to the exploitation of India’s resources and traditional industries, contributing significantly to the decline of the Indian economy in the 19th century.
\n<\/section>\n
\nThe period following the acquisition of Diwani is often referred to as the ‘Plassey Plunder’ period, highlighting the intense economic exploitation. The ‘Drain of Wealth’ theory, later popularized by Dadabhai Naoroji, articulated how India’s resources and wealth were systematically transferred to Britain under colonial rule, a process heavily influenced by the EIC’s control over revenue and trade.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Statement I : The economy of India in the 19th century came to a state of ruin under the English East India Company. Statement II : The 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. [amp_mcq option1=”Both the … <\/p>\n

Detailed SolutionStatement I :
\nThe economy of India in the 19th century came to a state<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1116,1264,1124],"class_list":["post-89519","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1116","tag-economic-impact-of-british-rule-on-india","tag-modern-history-of-india","no-featured-image-padding"],"yoast_head":"\nStatement I : The economy of India in the 19th century came to a state<\/title>\n<meta name=\"description\" content=\"Both Statement I and Statement II are individually true, and Statement II is the correct explanation of Statement I. Statement I is true because the economic policies of the English East India Company, particularly in the 19th century, systematically exploited India's resources and labour for the benefit of Britain, leading to de-industrialization, drain of wealth, and widespread poverty, thus ruining the Indian economy. Statement II provides a key mechanism through which this ruin occurred. The acquisition of Diwani rights in Bengal (1765) gave the EIC control over revenue collection. This led to excessive revenue demands on peasants, impoverishing them. Simultaneously, the EIC's trade policies, designed to promote British manufactured goods and suppress Indian textiles and handicrafts, devastated traditional Indian industries, leading to unemployment and misery for artisans. Thus, the miseries caused by the Diwani right directly contributed to the overall ruin of the Indian economy described in Statement I. The English East India Company's policies, especially after gaining Diwani rights, led to the exploitation of India's resources and traditional industries, contributing significantly to the decline of the Indian economy in the 19th century.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Statement I : The economy of India in the 19th century came to a state\" \/>\n<meta property=\"og:description\" content=\"Both Statement I and Statement II are individually true, and Statement II is the correct explanation of Statement I. Statement I is true because the economic policies of the English East India Company, particularly in the 19th century, systematically exploited India's resources and labour for the benefit of Britain, leading to de-industrialization, drain of wealth, and widespread poverty, thus ruining the Indian economy. Statement II provides a key mechanism through which this ruin occurred. The acquisition of Diwani rights in Bengal (1765) gave the EIC control over revenue collection. This led to excessive revenue demands on peasants, impoverishing them. Simultaneously, the EIC's trade policies, designed to promote British manufactured goods and suppress Indian textiles and handicrafts, devastated traditional Indian industries, leading to unemployment and misery for artisans. Thus, the miseries caused by the Diwani right directly contributed to the overall ruin of the Indian economy described in Statement I. The English East India Company's policies, especially after gaining Diwani rights, led to the exploitation of India's resources and traditional industries, contributing significantly to the decline of the Indian economy in the 19th century.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:06:14+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Statement I : The economy of India in the 19th century came to a state","description":"Both Statement I and Statement II are individually true, and Statement II is the correct explanation of Statement I. Statement I is true because the economic policies of the English East India Company, particularly in the 19th century, systematically exploited India's resources and labour for the benefit of Britain, leading to de-industrialization, drain of wealth, and widespread poverty, thus ruining the Indian economy. Statement II provides a key mechanism through which this ruin occurred. The acquisition of Diwani rights in Bengal (1765) gave the EIC control over revenue collection. This led to excessive revenue demands on peasants, impoverishing them. Simultaneously, the EIC's trade policies, designed to promote British manufactured goods and suppress Indian textiles and handicrafts, devastated traditional Indian industries, leading to unemployment and misery for artisans. Thus, the miseries caused by the Diwani right directly contributed to the overall ruin of the Indian economy described in Statement I. The English East India Company's policies, especially after gaining Diwani rights, led to the exploitation of India's resources and traditional industries, contributing significantly to the decline of the Indian economy in the 19th century.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/","og_locale":"en_US","og_type":"article","og_title":"Statement I : The economy of India in the 19th century came to a state","og_description":"Both Statement I and Statement II are individually true, and Statement II is the correct explanation of Statement I. Statement I is true because the economic policies of the English East India Company, particularly in the 19th century, systematically exploited India's resources and labour for the benefit of Britain, leading to de-industrialization, drain of wealth, and widespread poverty, thus ruining the Indian economy. Statement II provides a key mechanism through which this ruin occurred. The acquisition of Diwani rights in Bengal (1765) gave the EIC control over revenue collection. This led to excessive revenue demands on peasants, impoverishing them. Simultaneously, the EIC's trade policies, designed to promote British manufactured goods and suppress Indian textiles and handicrafts, devastated traditional Indian industries, leading to unemployment and misery for artisans. Thus, the miseries caused by the Diwani right directly contributed to the overall ruin of the Indian economy described in Statement I. The English East India Company's policies, especially after gaining Diwani rights, led to the exploitation of India's resources and traditional industries, contributing significantly to the decline of the Indian economy in the 19th century.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:06:14+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/","url":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/","name":"Statement I : The economy of India in the 19th century came to a state","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:06:14+00:00","dateModified":"2025-06-01T10:06:14+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Both Statement I and Statement II are individually true, and Statement II is the correct explanation of Statement I. Statement I is true because the economic policies of the English East India Company, particularly in the 19th century, systematically exploited India's resources and labour for the benefit of Britain, leading to de-industrialization, drain of wealth, and widespread poverty, thus ruining the Indian economy. Statement II provides a key mechanism through which this ruin occurred. The acquisition of Diwani rights in Bengal (1765) gave the EIC control over revenue collection. This led to excessive revenue demands on peasants, impoverishing them. Simultaneously, the EIC's trade policies, designed to promote British manufactured goods and suppress Indian textiles and handicrafts, devastated traditional Indian industries, leading to unemployment and misery for artisans. Thus, the miseries caused by the Diwani right directly contributed to the overall ruin of the Indian economy described in Statement I. The English East India Company's policies, especially after gaining Diwani rights, led to the exploitation of India's resources and traditional industries, contributing significantly to the decline of the Indian economy in the 19th century.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-economy-of-india-in-the-19th-century-came-to-a-state\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"Statement I : The economy of India in the 19th century came to a state"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/89519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=89519"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/89519\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=89519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=89519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=89519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}