British Economic Policies and Their Impact: RAS Prelims MCQs
28 RAS Prelims MCQs on British economic policies and their impact cover land revenue settlements, the drain of wealth, de-industrialisation, railway policy, famines and peasant uprisings. The questions ask about the Permanent Settlement, the Ryotwari system, the Tinkathia system, the Santhal rebellion and the nationalist critique of colonial economics.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 11–20 of 28 questions
| Class/Term in Agrarian Structure | Role/Description |
|---|---|
| A. Zamindar | i. Rich peasant or middleman with substantial landholdings |
| B. Ryot | ii. Moneylender who provided rural credit |
| C. Jotedar | iii. Proprietor responsible for collecting revenue for the state |
| D. Mahajan | iv. Actual cultivator or peasant |
Explanation
A Zamindar was the proprietor who collected revenue for the state, a Ryot was the actual cultivator, a Jotedar was a rich peasant or middleman and a Mahajan was a moneylender. This gives A-iii, B-iv, C-i, D-ii.Explanation
Railway freight rates favoured the export of raw materials and cheap imports into the interior, and acted like an indirect tariff against Indian manufacturers. They did not favour inland trade to help domestic industry, so D is incorrect.I. It integrated the Indian peasant into the vagaries of the national and international markets.
II. It led to increasing differentiation among the peasantry, benefitting a small upper stratum.
III. It significantly enhanced the food security of landless labourers.
IV. It resulted in the expansion of cash crops at the expense of staple food crops.
Which of the above statement(s) is/are correct?
Explanation
Commercialisation integrated Indian agriculture into the global market, making peasants dependent on international price trends. It benefitted a small group of wealthy farmers while causing significant social differentiation. The expansion of cash crops often happened at the expense of food crops, which reduced overall food security. Landless labourers did not see improvements in their conditions; instead, they faced increased economic vulnerability.Explanation
High British import duties on Indian textiles in the early nineteenth century closed British markets to Indian goods, which hastened de-industrialisation.Explanation
The MacDonnell Commission of 1900 advocated for a more proactive approach to famine management. It recommended a "moral strategy" where the administration would anticipate crop failures and provide immediate relief. This included the suspension and remission of land revenue, the provision of agricultural loans, and the prompt organization of relief works to prevent the mass starvation seen in previous decades.Explanation
Peasant indebtedness was driven by high revenue demands, coercive legal systems, and the costs of shifting to commercial agriculture. The colonial state did not provide low-interest credit; instead, peasants were forced to rely on private moneylenders. These creditors charged exorbitant interest rates and used the courts to seize land, creating a cycle of debt that became a defining feature of rural India.I. The planters used armed retainers called lathiyals to coerce the peasants.
II. The government appointed the Indigo Commission in 1860 to inquire into the system.
III. The Indigo Commission completely exonerated the planters of all wrongdoings.
IV. Following the revolt, indigo cultivation was virtually wiped out from Bengal.
V. The planters largely shifted their operations to Bihar after the Bengal revolt.
Which of the above statement(s) is/are correct?
Explanation
The Indigo Revolt saw peasants resisting the brutality of planters and their armed lathiyals. In response, the government formed the Indigo Commission, which found the system deeply exploitative. Consequently, indigo cultivation almost disappeared from Bengal. However, the planters did not stop their activities; instead, many moved their operations to Bihar, where they continued to use similar coercive methods until the twentieth century.Explanation
The Tinkathia system was a coercive practice in Bihar where peasants were legally required to grow indigo on three-twentieths of their landholding. This system was highly exploitative and became the focus of major peasant grievances. It was eventually challenged by Mahatma Gandhi during the Champaran Satyagraha in 1917, which led to the system’s abolition and relief for the suffering indigo cultivators.Statement I: It provided tariff protection to certain Indian industries but under very stringent conditions.
Statement II: The policy was primarily designed to fully protect indigenous industries against British imports.
Explanation
After World War I, the British introduced "discriminating protection," which allowed some Indian industries to receive tariff support. However, the conditions for this protection were extremely strict and designed to ensure that British industrial interests were not significantly harmed. The policy was never intended to promote full-scale industrialisation; rather, it was a limited concession to Indian nationalist pressure and changing economic circumstances.Answer key for these questions
| Q | Correct answer |
|---|---|
| 11 | (a) High revenue demands and debt caused land to pass into the hands of moneylenders. |
| 12 | (a) A-iii, B-iv, C-i, D-ii |
| 13 | (d) Preferential rates were given to inland trade to support domestic industry. |
| 14 | (b) I, II and IV only |
| 15 | (b) The closure of British markets to Indian goods, which accelerated de- industrialisation. |
| 16 | (d) A ‘moral strategy’ of early anticipation and prompt relief, including revenue suspension. |
| 17 | (a) The widespread availability of low-interest credit from state cooperative banks. |
| 18 | (a) I, II, IV and V only |
| 19 | (a) Indigo |
| 20 | (c) Statement I is correct but Statement II is incorrect |
Key facts from British Economic Policies and Their Impact
- Lord Cornwallis introduced the Permanent Settlement in Bengal in 1793.
- The Ryotwari settlement aimed at peasant proprietors but high revenue and debt pushed land to moneylenders.
- The Tinkathia system forced Champaran peasants to grow indigo on a part of their land.
- The Santhal Rebellion (1855-56) arose from oppression and dispossession by zamindars and moneylenders.
- De-industrialisation ruined centres such as Murshidabad and Dhaka.
- Naoroji stated the Drain Theory in 1867; the Welby Commission sat in 1895, and Poverty and Un-British Rule in India appeared in 1901.
Frequently asked questions
How many RAS Prelims practice MCQs are there on British Economic Policies and Their Impact?
This page has 28 practice MCQs on British Economic Policies and Their Impact (Modern Indian History). Each has the correct answer, and most have an explanation.
Who introduced the Permanent Settlement?
Lord Cornwallis, in Bengal in 1793. It fixed the land revenue permanently and made zamindars the owners of land, which gave the British a steady income but put heavy pressure on the actual cultivators.
What was the Tinkathia system?
A system in Champaran, Bihar, under which peasants had to grow indigo on three-twentieths (3/20) of their land for European planters. Its exploitation led to Gandhi’s first Satyagraha in India in 1917.
What was the Drain of Wealth?
The one-way transfer of India’s surplus to Britain through home charges, salaries, profits and interest, without an equal return. Dadabhai Naoroji first stated the theory in 1867, and it became a main plank of the nationalist economic critique.