Economic Policies of the British: UPSC Previous Year Questions (Modern History)
This page lists 21 previous year UPSC Civil Services Preliminary Examination (General Studies Paper-I) questions on Economic Policies of the British (Modern History), asked between 1996 to 2024. Choose an option to see the correct answer and the full explanation on the same page.
Showing 1–10 of 21 questions
UPSC 2024Modern History · Economic Policies of the British
Q1. 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?
Explanation
Statement 1 is incorrect: In Ryotwari system the government revenue was a fixed amount, irrespective of crop output, and was to be paid in cash. Thus during periods of bad crops or low prices the peasants were forced to pay the land revenue, even if it required borrowing from moneylenders.
Statement 2 is correct: In the Zamindari system the revenue was invariable, regardless of the harvest, and had to be paid punctually. According to the Sunset Law, if payment did not come in by sunset of the specified date, the zamindari was liable to be auctioned.
Exam tip:
For S1, would a colonial revenue system -- dependent on land tax -- really exempt peasants systematically in bad years? That’s wishful logic, not colonial logic. Hence likely false.
UPSC 2020Modern History · Economic Policies of the British
Q2. With reference to the history of India, consider the following pairs: 1. Aurang - In-charge of treasury of the State 2. Banian - Indian agent of the East India Company 3. Mirasidar - Designated revenue payer to the State Which of the pairs given above is/are correctly matched?
Explanation
Pair 1 is incorrectly matched: Aurang is a Persian term referring to a warehouse where goods are collected before being sold.
Pair 2 is correctly matched: The term Banian (or Banyan) was used during the colonial period to refer to Indian agents or intermediaries who acted as local representatives or agents for European trading companies, including the East India Company. They helped the company in business dealings, acted as middlemen, and facilitated trade.
Pair 3 is correctly matched: A Mirasidar was a landowner or hereditary holder of land in South India under the Ryotwari settlement system. The East India Company recognized mirasdars as the only proprietors of land, dismissing tenants’ rights completely. They acted as a designated revenue payer of the state.
UPSC 2020Modern History · Economic Policies of the British
Q3. Which of the following statements correctly explain the impact of the Industrial Revolution on India during the first half of the nineteenth century?
Explanation
The Industrial Revolution in Britain led to the mass production of textiles and other goods in Britain, which flooded the Indian market. This caused a decline in demand for Indian handicrafts which could not compete with the cheaper, machine-made British goods. This led to the ruin of traditional handicraft industries and artisans. Machine-based production in Indian textiles became more prominent after the 1850s, with the establishment of British-owned factories like the Bombay Spinning and Weaving Mill (1854). The first railway line in India was opened in 1853 between Bombay and Thane. By the latter half of the 19th century, the railway network expanded rapidly to facilitate the movement of goods (especially raw materials for British industries). British goods were often imported into India without heavy duties. British colonial policy was designed to ensure that India served as a market for British manufactured goods.
Exam tip:
For (b), Why would colonizers industrialize India, when they wanted it as a raw material source + market? Industrialization would make India self-reliant against British interest. For (c), Railways in India began around 1853, this is second half of 19th century, is well known fact. For (d), Britain wouldn’t tax its own exports to India. In fact, they likely removed Indian tariffs to promote free entry of British goods. Hence all b, c and d are Likely false
UPSC 2019Modern History · Economic Policies of the British
Q4. Which one of the following groups of plants was domesticated in the ‘New World’ and introduced into the ‘Old World’?
Explanation
The Old World refers to the continents of Europe, Asia, and Africa, known to Europeans before the discovery of the Americas. The New World refers to the Americas, including North and South America, which were "discovered" by Europeans after Christopher Columbus’s voyages in the late 15th century. Tobacco, cocoa, and rubber were domesticated in the ‘New World’ and introduced into the ‘Old World’ through the European explorers in the late medieval or early modern era. The Columbian exchange was the widespread transfer of plants, animals, culture, human populations, technology, diseases, and ideas between the Americas, West Africa, and the Old World in the 15th and 16th centuries.
Exam tip:
Sugarcane, cotton, and wheat are all Old World crops -- deduced entirely through ecological fit, civilizational association, and climate logic. Giving option A as correct.
UPSC 2018Modern History · Economic Policies of the British
Q5. Economically, one of the results of the British rule in India in the 19th century was the:
Explanation
Under British rule, Indian agriculture became increasingly commercialized. The traditional subsistence farming was replaced by large-scale cultivation of crops such as cotton, indigo, and jute for export purposes, often to meet the needs of British industries. Options (a), (b) and (d) are incorrect:
Indian handicrafts suffered during British rule due to the influx of cheap machine-made British goods, which displaced local handicrafts in domestic and international markets. The number of Indian-owned factories was very limited during the 19th century. Most of the industries, including textile mills, were controlled by the British. The urban population did not see a rapid increase during British rule. While some cities grew due to British administrative and military needs, the overall urbanization rate was low compared to European countries. Moreover, much of India’s population remained rural, engaged in agriculture.
Exam tip:
British rule harm India, not positively impacted it. Options A, B and D indicates positive outcomes while C the odd one out is negative impact, turning food crops into cash crops, making peasants vulnerable to market fluctuations and famine. Hence
option C likely correct.
UPSC 2018Modern History · Economic Policies of the British
Q6. The staple commodities of export by the English East Indian Company from Bengal in the middle of the 18th century were
Explanation
The East India Company was originally formed in Britain for pursuing trade with the East Indies in Southeast Asia. It ended up trading mainly with the Indian subcontinent and China, where the main items of trade were cotton, silk, tea and opium. Also Bengal produced saltpeter, a key ingredient for making gunpowder, which was in high demand for both domestic use and export.
UPSC 2017Modern History · Economic Policies of the British
Q7. Who among the following was/were associated with the introduction of Ryotwari Settlement in India during the British Rule? 1. Lord Cornwallis 2. Alexander Read 3. Thomas Munro Select the correct answer using the code given below:
Explanation
Option (c) is correct:
Permanent Settlement Started by Lord Cornwallis in 1793. Prevalent in Bengal, Bihar, Orissa, Varanasi (United Provinces), and Northern Karnataka. Covered 19% of British India. A new section of Zamindars was appointed who would provide 10/11th part of the revenue collected to the British while keeping the remaining. Ryotwari System Started by Thomas Munro and Alexander Reed in 1820. Started in the Baramahal district of Tamil Nadu and later spread to Madras, parts of Bombay, East Bengal, Assam and Coorg (Karnataka). Covered 51% of British India. Ryots (farmers) were given ownership and other rights over the land and were required to pay the revenue directly to the government. Involved high taxes and strict collection. Mahalwari System The Mahalwari system was introduced by Holt Mackenzie in 1822. Prevalent in United Provinces, Central Provinces and Punjab. Covered 30% of British India. The village or mahal served as the unit for collecting revenue. Village land belonged to the community and it was the responsibility of the entire community to pay the land revenue.
UPSC 2017Modern History · Economic Policies of the British
Q8. The Trade Disputes Act of 1929 provided for:
Explanation
The Trade Disputes Act 1929 was a British Act of Parliament passed to regulate industrial disputes in India. The main objective of the Act was to make provisions for the establishment of Courts of Inquiry(tribunals) and Boards of Conciliation with a view to investigate and settle trade disputes. Strikes and lockouts in public utility services were prohibited without prior notice. Such strikes were illegal and punishable under the Act. Motilal Nehru called it " The slavery of India Bill".
UPSC 2017Modern History · Economic Policies of the British
Q9. Consider the following statements: 1. The Factories Act, 1881 was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions. 2. N. M. Lokhande was a pioneer in organizing the labor movement in British India. Which of the above statements is/are correct?
Explanation
Statement 1 is incorrect: The Factory Act of 1881, passed during Lord Ripon’s tenure, aimed to improve working conditions in factories using mechanical power and employing at least 100 workers. It prohibited the employment of children under 7, limited children aged 7-12 to 9-hour workdays, and required dangerous machinery to be properly fenced. However, it did not address the formation of trade unions.
Statement 2 is correct: Narayan Meghaji Lokhande (1848-1897) is regarded as the father of the trade union movement in India. He worked to improve the conditions of textile mill workers and took courageous stands on caste and communal issues. He played a key role in reducing daily working hours from 16 to 10 hours in mills.
UPSC 2015Modern History · Economic Policies of the British
Q10. Who of the following was/were economic critic/ critics of colonialism in India? 1. Dadabhai Naoroji 2. G.Subramania Iyer 3. R.C. Dutt Select the correct answer using the codes given below.
Explanation
Dadabhai Naoroji, R.C. Dutt, Ranade, Gokhale, and G. Subramania Iyer were among the moderate leaders who established Indian nationalism on the principles of anti-imperialism by formulating the first comprehensive economic critique of colonialism.
Option (d) is correct: Dadabhai Naoroji (Grand Old man of India) in "Poverty and UnBritish Rule in India" propounded Drain of Wealth Theory. Romesh Chandra Dutta in "The Economic History of India" pointed to the absence of protection for India’s infant industries, and the negative implications of even constructive efforts like the railways which facilitated the import of British manufactured goods.G. V. Joshi pointed out that the development in India was like a subsidy to the British Industries. Justice Mahadev Govind Ranade, G. Subramaniam Iyer, G.K. Gokhale etc. examined every facet of the economy and subjected the entire range of economic issues and colonial economic policies to minute scrutiny.
Answer key for these questions
Q
UPSC year
Correct answer
1
2024
(b) 2 only
2
2020
(b) 2 and 3 only
3
2020
(a) Indian handicrafts were ruined.
4
2019
(a) Tobacco, cocoa and rubber
5
2018
(c) commercialization of Indian agriculture
6
2018
(d) Cotton, silk, saltpeter and opium
7
2017
(c) 2 and 3 only
8
2017
(d) a system of tribunals and a ban on strikes.
9
2017
(b) 2 only
10
2015
(d) 1, 2 and 3
Frequently asked questions
How many previous year UPSC questions are there on Economic Policies of the British?
This page covers 21 previous year UPSC Prelims GS Paper-I questions on Economic Policies of the British (Modern History), asked between 1996 to 2024. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Economic Policies of the British?
Questions on Economic Policies of the British (Modern History) are available for 12 years, from 1996 to 2024. Use the Year filter to practise a single paper.
