| Early Modern Industry | Location of First Major Mill/Factory |
|---|---|
| A. First Cotton Mill (1853/54) | i. Rishra (Bengal) |
| B. First Jute Mill (1855) | ii. Bombay |
| C. First Iron and Steel Works (modern attempt) | iii. Serampore |
| D. First Paper Mill | iv. Kulti / Barakar |
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 21–28 of 28 questions
Explanation
Home Charges consisted of payments made by India to Britain for services and obligations, not investments. They included interest on public debt, procurement of military and civil stores, and pensions for British personnel. The concept of the government of India investing in British industries did not exist; rather, the entire system was designed to transfer wealth from the colony to the imperial center.Statement I: The early response of the colonial state to famines was heavily influenced by the economic doctrine of laissez-faire.
Statement II: The Famine Code of 1883 completely eradicated famines in India for the remainder of British rule.
Explanation
Early colonial famine policy was heavily constrained by laissez-faire doctrines, which discouraged government intervention in the grain market. While the Famine Code of 1883 established formal relief procedures, it did not end famines. Severe and widespread famines continued to occur, such as the catastrophic 1899-1900 famine and the 1943 Bengal Famine, proving that the colonial response remained inadequate and structurally flawed.Explanation
The Santhal Rebellion was triggered by the introduction of the British revenue system and the subsequent influx of outsiders, known as dikus. Zamindars and moneylenders used the new legal framework to exploit the Santhals, charging high interest and seizing their ancestral lands. This economic oppression and the loss of traditional rights drove the Santhals to a violent uprising against the colonial state and its agents.Explanation
The expansion of plantations and commercial forestry severely impacted marginalized communities. The British classified vast forest areas as state property and restricted traditional activities like grazing and collecting produce. This enclosure movement deprived tribals of their primary livelihoods and displaced them from their lands. Many were forced to work as low-paid, often indentured, labourers on the very plantations that had replaced their ancestral forests.Explanation
Neel Darpan, written by Dinabandhu Mitra, was a powerful piece of social and political literature. It provided a vivid and realistic account of the systemic cruelty and exploitation faced by indigo cultivators at the hands of European planters. The play played a crucial role in raising awareness and generating public sympathy, which helped build the momentum for the Indigo Revolt and the subsequent government inquiry.Explanation
Under the doctrine of laissez-faire, colonial administrators were reluctant to regulate food prices or stop grain exports, even during severe scarcities. They believed that market forces would eventually solve shortages and that state intervention would be harmful to trade. This approach often allowed merchants to hoard grain for higher profits while the poor could not afford food, leading to millions of preventable deaths.Explanation
While the jute and tea industries were dominated by British capital, the cotton textile industry was a notable exception. Indian entrepreneurs in Bombay and Ahmedabad founded and managed the early cotton mills, using capital accumulated through trade. This sector became a stronghold of the Indian capitalist class and played a vital role in the national movement, especially during the Swadeshi and non-cooperation agitations.Answer key for these questions
| Q | Correct answer |
|---|---|
| 21 | (a) A-ii, B-i, C-iv, D-iii |
| 22 | (c) Government of India investments in British domestic industries. |
| 23 | (c) Statement I is correct but Statement II is incorrect |
| 24 | (d) Oppression and dispossession by zamindars and moneylenders. |
| 25 | (a) Forest enclosure and restriction of customary rights, causing loss of livelihood. |
| 26 | (c) It realistically portrayed the oppression of indigo farmers. |
| 27 | (a) Refusal to interfere with private trade of grains, even during hoarding. |
| 28 | (d) The Cotton Textile Industry in Bombay and Ahmedabad |
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.