Economic Policies of the British: UPSC Previous Year Questions (Modern History)
21 previous year UPSC Prelims questions on British economic policies are on this page, from 1996 to 2024. UPSC asks about land revenue systems, Dadabhai Naoroji’s drain theory, Home Charges, labour legislation and the commercialisation of agriculture. The explanations give the settlement, its regions and its effects.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 11–20 of 21 questions
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UPSC 2012Modern History · Economic Policies of the British
Q11. With reference to Ryotwari Settlement, consider the following statements: 1. The rent was paid directly by the peasants to the Government. 2. The government gave Pattas to the Ryots. 3. The lands were surveyed and assessed before being taxed. Which of the statements given above is/are correct?
Explanation
Statement 1 is correct: The Ryotwari System was started by Thomas Munro and Alexander Reed. It was started in the Baramahal district of Tamil Nadu and later spread to Madras, parts of Bombay, East Bengal, Assam and Coorg. Ryots were required to pay the revenue directly to the government
Statement 2 is correct: Ryots (farmers) were given the ownership and other rights (Pattas) over the land.
Statement 3 is correct: The Ryotwari System involved high taxes (50% in dryland and 60% in wetland) and the taxes had to be paid regardless of the harvest, leading to peasant distress. The land was surveyed and an assessment for its productivity before imposing taxes. This assessment was based on the quality and size of the land, and the tax was usually a fixed portion of the estimated crop yield. Mahalwari System Permanent Settlement Ryotwari Settlement Punjab and UP Bombay and Madras Bengal Bihar and Orissa
UPSC 2012Modern History · Economic Policies of the British
Q12. Consider the following statements: The most effective contribution made by Dadabhai Naoroji to the cause of Indian National Movement was that he-1. Exposed the economic exploitation of India by the British. 2. Interpreted the ancient Indian texts and restored the self-confidence of Indians. 3. Stressed the need for eradication of all the social evils before anything else. Which of the statements given above is/are correct?
Explanation
Statement 1 is correct: Dadabhai Naoroji (Grand Old man of India) wrote the "Poverty and UnBritish Rule in India" in which he propounded The Drain of Wealth Theory and exposed the economic exploitation of Indians by the British.
Statement 2 is incorrect: Swami Dayanand Saraswati, Swami Vivekananda, etc. interpreted the ancient texts and restored the self confidence of Indians, not Dadabhai Naoroji. Swami Dayananda Saraswati even gave the call to "go back to vedas".
Statement 3 is incorrect: Raja Rammohan Roy, Ishwar Chandra Vidyasagar, Keshav Chandra Sen, Atmaram Pandurang, etc. emphasized the need for eradication of all social evils before anything else.
UPSC 2012Modern History · Economic Policies of the British
Q13. Consider the following: 1. Assessment of land revenue on the basis of nature of the soil and the quality of crops. 2. Use of mobile cannons in warfare. 3. Cultivation of tobacco and red chillies. Which of the above was/were introduced into India by the English?
Explanation
Statement 1 is incorrect: After getting the Diwani rights of Bengal, Bihar, and Orissa in 1765 the major aim of the British East India Company was to increase their land revenue collection without caring of its consequences on cultivators and peasants.
Statement 2 is incorrect: The first recorded use of Artillery in India is at the Battle of Adoni in 1368 by the Bahamani kings against the Raja of Vijayanagar.
Statement 3 is incorrect: Tobacco and Red Chillies were introduced by Portuguese not British.
UPSC 2011Modern History · Economic Policies of the British
Q14. The tendency for increased litigation was visible after the introduction of the land settlement system of Lord Cornwallis in 1793. The reason for this is normally traced to which of the following provisions?
Explanation
The Permanent Land Revenue Settlement of Bengal was extended to the provinces of Bihar and Orissa by Lord Cornwallis in 1793. The land where the zamindars had previously been responsible for collecting revenue was given to them as ownership. The demand for land revenue was predetermined and out of controlled revenue, 10/11th part was given to the company.
Option (d) is correct: The reforms increased the litigation after the introduction of the land settlement system and the main reason for this was the relief at the front of Court Fee and now everybody could drag anybody to the courts.
UPSC 2011Modern History · Economic Policies of the British
Q15. With reference to the period of colonial rule in India, "Home Charges" formed an important part of the drain of wealth from India. Which of the following funds constituted "Home Charges"? 1. Funds used to support the India Office in London. 2. Funds used to pay salaries and pensions of British personnel engaged in India. 3. Funds used for waging wars outside India by the British. Select the correct answer using the codes given below:
Explanation
Dadabhai Naoroji in "Poverty and UnBritish Rule in India" (1901), propounded the Drain of Wealth Theory. It refers to the constant one way flow of wealth from India to England for which India got no return. Home Charges played a significant role in the Drain of Wealth from India.
Statement 1 is correct: Funds used to support the India Office in London.
Statement 2 is correct: Funds used to pay salaries and pensions of British personnel engaged in India.
Statement 3 is incorrect: There are no clear references to using these funds for waging wars outside India by the British. Note: Here official answer given by UPSC is Option (b), However confusion with Statement 3 is understandable.
UPSC 2003Modern History · Economic Policies of the British
Q16. During the colonial period in India, what was the purpose of the Whitley Commission?
Explanation
The Whitley Commission (1929), also known as the Royal Commission on Labour in India, was established by the British colonial government to investigate labour conditions in India. Chaired by Sir William Whitley, its purpose was to examine issues like wages, working hours, and living conditions of industrial workers. It recommended improving labour welfare, establishing labour unions, and creating welfare funds, along with measures for industrial peace, better working conditions, and health and safety improvements for workers.
UPSC 2003Modern History · Economic Policies of the British
Q17. In India, the first Bank of limited liability managed by Indians and founded in 1881 was:
Explanation
The Oudh Commercial Bank, founded in 1881 in Faizabad, Uttar Pradesh, was the first Indian-managed bank to be established as a limited liability company. It was created by local businessmen and marked a significant shift in India’s banking sector, which had previously been dominated by the British. The bank’s establishment highlighted the increasing involvement of Indians in economic activities, especially in banking, and it aimed to provide financial services to local industries and trade, representing a milestone in Indian-controlled commercial banking.
UPSC 2001Modern History · Economic Policies of the British
Q18. Under the Permanent Settlement, 1793, the Zamindars are required to issue pattas to the farmers which were not issued by many of the Zamindars. The reason was:
Explanation
The Permanent Settlement of 1793, introduced by Lord Cornwallis. It fixed land revenue that zamindars had to pay to the British government permanently. While it aimed to create a loyal class of landlords, it led to peasant exploitation and failure to issue pattas (land agreements) to farmers due to a lack of effective oversight. The zamindars often did not issue pattas because there was no effective supervision or enforcement by the British government, leaving farmers vulnerable to exploitation.
UPSC 1999Modern History · Economic Policies of the British
Q19. There was no independent development of industries in India during British rule because of the:
Explanation
The British colonial economic model transformed India into a supplier of raw materials like cotton, indigo, and iron ore, which were sent to Britain for processing. India was forced to sell these materials at low prices and buy British-made goods at higher prices. Industrial development in India was discouraged to prevent competition with British industries, keeping India dependent on Britain for finished goods and limiting its own industrial growth. The lack of heavy industries discouraged independent industrial development.
UPSC 1999Modern History · Economic Policies of the British
Q20. The term "imperial preference" was applied to the:
Explanation
Imperial Preference was a British colonial trade policy that granted preferential treatment to British goods in its colonies, including India. British goods were sold at lower tariffs or duty-free, while colonies like India were required to sell raw materials to Britain at favorable prices. This system subordinated the economic interests of colonies, prevented the development of Indian industries, and ensured Britain’s economic dominance. It also reinforced political control, making colonies dependent on Britain for both manufactured goods and trade.
Answer key for these questions
Q
UPSC year
Correct answer
11
2012
(c) 1, 2 and 3
12
2012
(a) 1 only
13
2012
(d) None
14
2011
(d) None of the (a), (b) and (c) above
15
2011
(b) 1 and 2 only
16
2003
(b) To report on existing conditions of labour and to make recommendations.
17
2003
(b) Oudh Commercial Bank
18
2001
(b) there was no official check upon the Zamindars.
19
1999
(a) absence of heavy industries
20
1999
(a) special privileges on British imports in India
What UPSC has tested in Economic Policies of the British
Under the Permanent Settlement of 1793, zamindars were required to issue pattas to farmers.
Under the Ryotwari Settlement the rent was paid directly by the peasants to the Government; Munro and Reed are associated with it.
Dadabhai Naoroji gave the drain theory; Sir Syed Ahmad Khan did not believe in it.
Home Charges were an important part of the drain of wealth.
The Whitley Commission (1929) reported on labour conditions; the Trade Disputes Act of 1929 provided for tribunals and a ban on certain strikes.
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 from 1996 to 2024. Each has the correct answer and an explanation.
What was the Permanent Settlement?
A land revenue arrangement introduced by Lord Cornwallis in Bengal in 1793, fixing the revenue the zamindars owed permanently. The zamindars became landowners who collected rent from peasants, and were to issue pattas stating the rent.
What was the drain of wealth theory?
Dadabhai Naoroji’s argument that a large part of India’s wealth flowed to Britain through Home Charges, salaries and profits without return, which impoverished the country. It was a pillar of the early nationalist economic critique of colonialism.
What was the Whitley Commission?
A Royal Commission on Labour appointed in 1929 under J. H. Whitley to report on the conditions of labour in India. It reported in 1931 on working conditions, wages and welfare of industrial workers.
