WBBSE Solutions For Class 8 History Chapter 4 Nature Of Colonial Economy Topic B Industry Commerce Duties Communication And Different Forms Of Exploitation In Colonial Period

Chapter 4 Nature Of Colonial Economy Topic B Industry Commerce Duties, Communication And Different Forms Of Exploitation In Colonial Period Descriptive Questions

Question 1 Mention the features of the colonial economy.
Answer:

Colonial Economy Introduction:

The British company transacted the economy of colonial India to further the interest of their own country.

Features Of Colonial Economy-

1. Monopoly trade:

Monopoly trade means the establishment of the domination of one country over the export of a particular commodity through abundant production and supply.

For example, England established its monopoly over textiles in colonial India after the Industrial Revolution.

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2. Drainage of Wealth:

The way in which a colonial power transports the wealth and resources of a colony to its own motherland is called the drainage of wealth or drainage of resources.

After the Battle of Plassey, the British East India Company and its officials transported huge amounts of wealth and resources to England.

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3. Deindustrialisation:

Deindustrialization means the complete decay of industries. The destruction of native industries was an important part of deindustrialization.

4. Different land revenue systems:

The British government started making various experiments with land revenue to bring the agro-based rural economy of India under the colonial economy.

The introduction of Permanent Settlement, Ryotwari, Mahalwari, and Bhaiyachari systems transformed the Indian economy into a colonial economy.

5. Introduction of railways:

The work of building railway tracks started during the time of Lord Dalhousie.

One of the main motives was to connect the main cities, ports, markets, and raw material-producing areas through the railways.

The introduction of railways enlivened the colonial economy.

Question 2. Write a note on the Tax Preservation policy in Indian Industry.
Answer:

Tax Preservation Policy In Indian Industry:-

Introduction:

The British government adopted an industrial policy by imposing duties on imported items and by giving some tax concessions to native industries. This is known as the Tax preservation policy.

1. Formation of Industrial Commission:

There was a demand for protecting the indigenous industries from the usual competition with foreign goods.

So an Industrial commission was set up under the chairmanship of Thomas Holland during the Second World War.

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2. Recommendation of the Commission:

1. The government adopted some protective industrial policies between 1920 and 1930 and later to remove the obstacles on the path of development of indigenous industries.
2. Taxes were imposed on the import of iron, steel, paper, sugar, thread, salt, and matches.
3. The tax rate was increased from 3.5% to 7.5% and later on to 11%.
4. Industries were categorized in the center and the provinces to implement separate industrial and trading policies.

Results:

1. The Indigenous industries again flourished due to the adoption of a tax preservation policy.
2. After the First World War much of Indian capital was invested in jute mills, iron and steel industries, tea gardens, and banking.

Question 3. What do you mean by Deindustrialization? What was its effect on India in the colonial period?
Answer:

Deindustrialization Definition:

Deindustrialization is the course of reverse industrialization. In British India, deindustrialization meant the destruction of traditional handicraft and cottage industries.

Deindustrialization Effects:

1. Unemployment:

The Indian artisans and craftsmen lost their jobs due to deindustrialization. As no big factories were set up in place of cottage industries many people became unemployed.

2. Decay of cottage industries:

The goods produced in the British mills were quite cheap. So the native hand-made goods lagged behind in the competition-so these cottage industries gradually decayed.

3. Loss of prosperity of towns:

The towns of Dhaka, Murshidabad, and Surat became depopulated due to the decay of industries or deindustrialization.

The population of Dhaka, the heart of the Indian Muslim industry, lost almost half of its population.

4. Transformation into a raw material supplier:

The process of deindustrialization converted India into a supplier of raw materials.

The British factories in England now began to use raw silk, raw cotton, tea, and indigo imported from India.

5. Destruction of the sugar industry:

The sugar produced at the factories in Bihar and Varanasi was exported to Britain via Kolkata port. The transport cost and duties were quite high.

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Again, the British Government imposed taxes on the Indian sugar industry. This was three times that of the existing ones.

So the Indian sugar industry lagged behind in competition and slowly decayed.

6. Destruction of the shipping industry:

The shipbuilding industry was adversely affected when the British authorities put a ban on the use of Indian ships in trade.

Again, several restrictions were imposed on the entry of steamers and the procedure of building ships. Thus the shipbuilding industry of India began to decay.

Question 4. Discuss the causes of the decay of the Indian textile industry under the company’s rule. What were its effects?
Answer:

Causes Of The Decay Of The Indian Textile Industry Under The Company’s Rule:-

Indian Textile Industry Introduction:

Though the English East India Company had come to India to trade gradually they succeeded in capturing political power.

The Company continuously destroyed the prosperous textile industry of India for about 100 years from the Battle of Plassey to the Sepoy Mutiny.

Causes Of Decay Of the Indian Textile Industry-

1. Tax discrimination:

The duties on the mill-manufactured fabric imported from Britain were reduced on the pretext of free trade.

On the other hand, heavy duties were levied on Indian goods which were exported to Britain.

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2. Cheap and fancy clothes:

The clothes produced in the mills in Manchester were quite cheap and fancy and easily attracted Indian customers.

So, an unprecedented crisis could be noticed in the weaving industry in India.

3. Industrial Revolution:

As a result of the Industrial Revolution, highly developed techniques were used in England to produce huge quantities of clothes in a short time.

So, the production cost remained less and this enabled the British traders to sell their products at a cheap rate.

4. British monopoly over raw cotton:

Since the monopoly of raw cotton was in the hands of the British, the Indian weavers had to buy cotton at high prices.

Again, they had to sell the manufactured clothes at lower prices. Thus the weavers lost both ways, became bankrupt, and gave up weaving.

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5. Famines and natural disasters:

The weaving industry declined due to natural calamities like the famine of 76, and the disastrous flood and cyclones of 1787-88. Several weavers were killed.

The centers of the Indian textile industry like Sylhet, Rangpur, Malda, Nadia, and Chittagong lost their tradition of textiles.

Question 5 Discuss the reasons for the decline of indigenous industries during the rule of the East India Company.
Answer:

Reasons For The Decline Of Indigenous Industries During The Rule Of The East India Company:-

Indigenous Industries  Introduction:

The indigenous industries in India declined under the British. rule. This decay of industries is referred to as deindustrialization.

Causes Of Decay Indigenous Industries –

The main causes of the decay of indigenous industries are as follows:

1. Industrial Revolution in England:

The Industrial Revolution took place in England for the first time.

So high quality goods began to be produced in the mills and factories with the help of new technology. As a result, the native products suffered a setback.

2. Monopoly of the company:

The British East India Company established its monopoly over industry and trade after receiving ‘Diwani’.

Naturally, the native industrialists and traders could not compete with the company and lagged behind.

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3. Lack of capital:

The main condition for the development of an industry is the availability of adequate capital. In the 18th century

the British Company exploited the resources of India so much that the Indian industrialists did not have enough capital to keep the structure of our industries intact.

4. Discriminatory Tax Policy:

After implementing the dual government system, the Company further destroyed the indigenous industries by using discriminatory tax policies.

They themselves availed of tax concession but imposed heavy duties on the indigenous products and thus completed the destruction of indigenous industries.

5. Export of raw materials:

When the Company exported raw materials from India including cotton, scarcity of raw materials for native industries arose.

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6. Unrestricted trade policy:

The Charter Act of 1813 did away with the monopoly of the British traders and an unrestricted trade policy was followed.

This encouraged more English traders to come to India. The agro-based products are manufactured in England. flooded the Indian markets.

Question 6 What was the motive of the British behind the introduction of railways in India?
Answer:

Motive Of The British Behind The Introduction Of Railways In India:-

Railways in India Introduction:

The introduction of railways in the second half of the 19th century brought about a change in the economic life of the Indians.

Lord Dalhousie declared in 1854 that the railways have been constructed to modernize the Indian economy.

Motive Of The British In Constructing Railways In India-

Dalhousie’s Motive:

1. The reasons for Dalhousie’s personal initiative in introducing the railways were
2.  sending the army quickly to suppress the revolts in distant areas;
3.  to develop the communication system and thereby extend commercial facilities;
4. to build up an industrial infrastructure through the construction of railways and welcome the initiative of the British capitalists;
5. to facilitate the transportation of raw materials from distant regions to commercial ports.

Motive Of The British Government

1. Economic motive:

1. To send the huge amount of commodities produced in England as a consequence of the Industrial Revolution to the frontier regions;
2.  to create a safe place for profitable investment of the huge capital that had accumulated due to the Industrial Revolution;
3. to increase employment opportunities by expanding the railways.

2. Political and administrative motive:

The British empire had become quite vast during the tenure of Lord Dalhousie. Therefore, the need for a developed communication system was felt to administer such a large empire.

3. Military motive:

The railways became an important and inevitable means for sending food and other resources to the army quickly, to suppress rebellions in the interior or distant areas, and to combat external aggressions.

So, after the Great Revolt of 1857, railways were quickly extended to sensitive areas in spite of the acute financial crisis

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Question 7 What was the role of the Guarantee System in the expansion of railways in India?
Answer:

Role Of The Guarantee System In The Expansion Of Railways In India:-

1. Guarantee System Introduction:

The British government gave a guarantee to the private companies ensuring their profit so that they might start constructing the railways. This is known as Guarantee System.

2. Terms of Guarantee System:

1.  The companies would be given a lease of land to build the railways for 99 years.
2. The government would provide a guarantee of profit, .e. the government would pay compensation if the profit was less than 5% of the capital.
3.  If the profit exceeded 5% then the excess amount would be shared equally between the investor and the government.
4. The government could buy the railways after 25 or 50 years if it so wished.
5. The investing companies would get back their capital at a notice of six months.

On getting such a guarantee from the government eight British companies invested their capital in building the railways.

3. Introduction of Guarantee System:

The guarantee system was introduced in 1849 and by 1869 about 8,255 miles of railways were constructed.

However, the guarantee system had to be stopped when corruption was detected in the accounts of the different railway companies.

The system was renowned in 1880 but the guarantee of profit was reduced from 5% to 3.5%.

4. Criticism:

1.  It was wrong to think that the Indian economy would prosper if foreign capital was invested in building the railways. Rather it weakened the Indian economy
2. The government suffered great losses in paying the guaranteed money to the private companies.

Question 8 Discuss the influence of the railways on the Indian economy.
Answer:

Influence Of The Railways On The Indian Economy:-

Railways on the Indian Economy Introduction:

The construction of railways by the British Government deeply influenced the socioeconomic life of the Indians. In fact, it changed the entire economic face of colonial India.

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Influence Of The Railways-

1. Merits:

1. Development of Communication:

The communication system developed due to the construction of the railways. It facilitated the easy, safe, and swift transportation of goods as well as passengers.

Relief materials could be quickly sent to the frontier regions during drought or famine.

2. Quick development of industries:

The railways played a vital role in the process of industrialization in India. So the introduction of railways actually initiated the development of modern industries in India

3. Cost discrimination removed:

The railways reduced the distance between the different regions of India and also brought down the transport cost which, in turn, helped to remove the discrepancy in the price of commodities

4. Expansion of trade:

The railways also helped in the expansion of both internal and external trade by facilitating transport and communication.

2. Railways on the Indian Economy Demerits:

1. The miserable condition of the rural economy:
2.  The British capitalists invested their capital in the railways and took away the profit to England thereby draining the wealth of India. So the rural economy became weak.
3. Harmful to other means of transport:
4. As the railways gained prominence, other means of land and water transport suffered heavy losses.
5. Harmful to native products and cottage industries:

The goods manufactured in Britain flooded the Indian markets, even in the interior regions, through the railways.

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So the markets selling indigenous products suffered a heavy loss. The cottage industries went almost out of existence.

4. Scarcity of food items: Essential items like rice, wheat, and other food items were exported to England through the railways. So there was a scarcity of food in the country.

Question 9 Briefly discuss the European and Indian initiatives in the development of the cotton textile industry in India.
Answer:

European And Indian Initiatives In The Development Of The Cotton Textile Industry In India:-

Cotton Textile Industry in India Introduction:

The industry which showed maximum development under Indian initiative in the second half of the 19th century was the textile industry.

The main center of the textile industry was Bombay.

1. European Initiative:

The English and other European capitalists were interested in making investments in the cotton textile industry.

In fact, the first cotton textile center in India had grown up under European initiative.

The Bauria Cotton Mill of Howrah was established in 1818.

Pondichery under French initiative and in 1853 Then a spinning mill was set up in 1830 at Broach under the initiative of an Englishman named James Landen.

Indian Initiative:

1. Reasons for the initiative:

Some notable reasons for Indian initiative in the textile industry are as follows

1. The Parsees and Marwaris of Bombay and Gujarat decided to invest their capital in the textile industry keeping the geographical advantage in view.
2. The native industrialists also took advantage of the introduction of the railways in Bombay.
3. Cotton, the most essential raw material of the textile industry grew abundantly in South India and so the Indian industrialists showed interest in investing in the textile industry
4.  In the case of Persian textiles, the traders were already carrying on trade in cotton with Africa and China. Their experience proved to be profitable in the Indian textile industry.

2. Establishment of Industries:

1. Bombay Spinning and Weaving Company, the first largest textile industry under Indian initiative was established in 1853 by the Persian industrialist Cawasji Nanabhoy Davar
2. Ranchorlal Chopatlal set up a cloth mill in Ahmedabad in 1859.
3. The eminent industrialist Jamshedji Tata set up the Empress Mill in Nagpur in 1877.

Question 10 Discuss the European and Indian initials active in Jute Industry.
Answer:

European And Indian Initials Active In Jute Industry:-

Jute Industry Introduction:

Bengal was famous for its jute production. So the Indian Jute Industry grew up through the setting up of Jute mills on either side of the Ganges.

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The investment in this industry began after the First World War. The investment, as well as management of these industries, remained in the hands of foreigners.

1. Jute Industry European Initiative:

1.  The first jute mill was established by George Auckland in Rishra in 1855.
2. The second mill was established at Baranagar by the Borneo Company in 1859. Two more mills were set up at Gauripur and Sirajganj in 1862.
3.  An association of the jute mill owners called the Jute Manufacturer’s Association grew up in 1884 to organize the jute industry. In 1902 it was renamed as Indian Jute Mills Association.

2. . Jute Industry Indian Initiative:

1.  The Bengalee industrialist Shyam Sunder Sen was a partner of the Jute mill set up by Auckland in Rishra.
2. The first Indian to invest in this industry was Ghanshyam Das Birla (1921). The investment was made by Swarup Chand Hukumchand in 1922.

In 1910 jute products of approximately 2 crores and 5 lakhs rupees were exported to different countries all over the world.

3. Jute Industry Conclusion:

As the demand for jute products increased considerably during the First World War, production was carried on in the mills day and night and the mill owners earned huge profits.

However, the jute farmers were not benefitted. After the war ended, the rate of production in the mills became irregular.

Question 11. Discuss briefly how the drainage of resources took place after the Battle of Plassey.
Answer:

The Drainage Of Resources Took Place After The Battle Of Plassey:-

Battle of Plassey Introduction:

After winning the Battle of Plassey the Company sent a huge amount of wealth and products collected from Bengal and other parts of India to England.

This outgoing of resources is referred to as ‘Drainage of wealth or ‘Economic Drainage’ by historians and critics.

1. Through the making of Nawabs:

After winning the Battle of Plassey the company began to play the role of king-maker in Bengal.

They kept placing one Nawab after another on the throne and kept on extracting money from each Nawab.

2. Through bribes and gifts:

The company officials sent about 50 crores to England. They collected this money through bribes, gifts, fees, and tributes.

They took a gift of 4,76,000 rupees to place Reza Khan as the Naib Nazim.

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3. Through the high officials:

The high officials of the company like Clive, Johnston, William Henry, and Sykes came from. England and took away millions of rupees with them.

They amassed such wealth through direct or indirect private trade, investment, and imposition of taxes.

4. Through contract:

The Governor General as well as British Residents and officials amassed huge wealth by taking contracts for bridge construction, dam construction, and road construction directly or indirectly.

5 Through Home Charges:

The expenses incurred in England to transact the Company’s activities in India were collected from India only. These expenses were known as Home Charges.

Question 12. Give a comparative account of the initiatives taken by the Europeans and the Indians in the development of modern industries in India.
Answer:

A Comparative Account Of The Initiatives Taken By The Europeans And The Indians In The Development Of Modern Industries In India:-

Question 13 Suppose you and your friend are two Indians living in the first half of the 19th century. Write a dialogue on the development of railways and telegraph systems in colonial India.
Answer:

Development Of Railways And Telegraph Systems In Colonial India:-

Manish: Haven’t you heard Rajesh, that Governor General Lord Dalhousie has introduced the railways in India?

 Rajesh: Yes, I have heard Manish, that a railway track has been constructed from Bombay to Poona,

 Manish: Now it will be possible to go quickly from one place to another via the railways, isn’t it? Ispahin.

Rajesh: That’s right but the British have constructed it to serve their interest, not ours.

Manish: I haven’t understood what you mean.

Rajesh: The actual motive of the British is to suppress the revolts by sending the army quickly by train.

Again, railways have been built to facilitate the transportation of raw materials from remote areas.

Manish: Is it so?

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Rajesh: Yes. Moreover, do you know that British capitalists are investing their capital in the railways to earn more profits?

Manish: Well, do they have any vested interest in introducing the telegraph?

Rajesh: Of course. The British want to use the telegraph system to administer the country in a better way.

 Manish: Would you please explain more elaborately?

Rajesh: Listen, the British have developed the telegraph system to get information quickly and directly from all parts of India.

Manish: You are right. I had not thought so deeply.

Rajesh: However, it is also true that though the development of the telegraph system and the introduction of the railways involve the interest of the British, they have helped to modernize the Indian economy and culture.

Chapter 4 Nature Of Colonial Economy B Industry Commerce Duties Communication And Different From Of Exploitation In Colonial Period Short Analytical Type Questions

Question 1. What do you mean by modernization of the economy?
Answer:

Modernization Of The Economy:-

Trade formed an important part of the colonial economy in India and this trade was chiefly dependent on agricultural products.

The government began to compel the farmers to grow cash crops like tea, indigo, jute, and cotton, and thus agriculture was gradually commercialized.

So the introduction of railways, the increase in export rate, and the commercialization of agricultural products together led to the modernization of the economy.

Question 2. State two characteristic changes of Indian trade.
Answer:

Characteristic Changes Of Indian Trade:-

1. Abolition of Commercial Monopoly:

Initially, the East India Company enjoyed monopoly rights in trade by virtue of a charter passed by the British Government.

However, the Charter Act of 1813 put an end to the monopoly of the company in Indian trade.

2. Introduction of unrestricted trade:

With the introduction of the policy of unrestricted trade, other European companies also got the right to trade in India.

The chief products of England entered India in huge amounts and the Indian traders were unable to compete with them.

Question 3 Which items were imported and exported by the British East India Company in India?
Answer:

Items Were Imported And Exported By The British East India Company In India:-

The East India Company got the right to monopoly trade from the Queen of England in 1600 and remained a trading company till 1757.

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Imports:

The company used to import expensive metals and necessary items from England.

Export: They exported various spices and clothes from India to England.

Question 4. State two main reasons for the decline of the textile industry in India.
Answer:

Two reasons for the decline of the textile industry in India are :

1. Industrial Revolution in England:

As the Industrial Revolution first took place in England, high-quality and durable clothes began to be produced cheaply in less time.

2. Company’s monopoly over cotton :

Quality raw materials were required for the textile industry.

The monopoly of the British East India Company over raw cotton landed the native industry in trouble since they could not find any farmers to supply them with raw cotton.

Question 5. What were the results of the decline of the textile industry in India?
Answer:

Results Of The Decline Of The Textile Industry In India:-

1. Increase in unemployment:

Many laborers connected with the cotton and silk industries became unemployed.

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2. Pressure on agricultural hands:

Many unemployed persons came to seek jobs in the agricultural fields. So the pressure on agricultural land increased.

3. Decrease in income and production:

The farmers decreased their income considerably. Again the production
decreased due to the division of cultivable land into smaller parts.

4 Decrease in the prosperity of towns:

The prosperity of the towns like Dhaka, Malda, Rangpur, Surat, and Muslipattanam, which were centers of textile industries, decreased considerably.

Chapter 4 Nature Of Colonial Economy Topic B Industry-Commerce Duties Communication And Different From Of Exploitation In Colonial Period state Whether The Following Statements Are True Or False

Question 1. The textile industry is the chief cottage industry of India.
Answer: True

Question 2. Muslin was a famous cottage industry in India.
Answer: True

Question 3. Muslin is a fine and delicate cotton fabric.
Answer: True

Question 4. ‘Hind Swaraj’ is a book written by historian Ramesh Chandra Dutta.
Answer: False

Question 5. Jawaharlal Nehru first spoke about the drainage of resources.
Answer: False

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Question 6. ‘Poverty and Un-British Rule in India’ was written by Dadabhai Naoroji.
Answer: True

Question 7. Dalhousie formed the Board of revenue.
Answer: False

Question 8. ‘Wealth of Nations’ was written by the British economist Adam Smith.
Answer: True

Chapter 4 Nature Of Colonial Economy B Industry Commerce Duties Communication And Different From Of Exploitation In Colonial Period Fill In The Blanks By Selecting The Appropriate Expressions From The Brackets

Question 1. The Company’s monopoly in trade came to an end in ____________(1812/1813/1814).
Answer: 1813

Question 2. ____________(85/86/87) percent of the cotton clothes manufactured at Lancashire in 1914, were sold in India.
Answer: 85

Question 3. The most precious jewel’ of the British was empire ____________ (America/India/ Algeria).
Answer: India

Chapter 4 Nature Of Colonial Economy Topic A Agriculture In Colonial Period Topic B Industry-Commerce Duties Communication And Different From Of Exploitation In Colonial Period Answer In A Complete Sentence

Question 1. What is deindustrialization?
Answer:

Deindustrialization:-

In British India, deindustrialization meant the destruction of traditional handicraft and cottage industries.

Question 2. How many telegraph centers were established in the subcontinent by the end of 1856?
Answer:

46 telegraph centers were established in the subcontinent by the end of 1856.

Question 3. How much was invested in Indian Railways between 1859 to 1869?
Answer:

More than 7 crore pounds were invested in Indian Railways between 1859 to 1869.

Question 4. Who is considered the father of Indian Railways?
Answer:

The Father Of Indian Railway:-

Lord Dalhousie is considered the father of Indian Railways.

Question 5. How did the railway stations keep connecting with each other?
Answer:

Railway Stations Keep Connecting With Each Other As Follows:-

The railway stations kept connecting with each other through telegraph.

Chapter 4 Nature Of Colonial Economy Topic B Industry Commerce Duties Communication And Different From Of Exploitation In Colonial Period Select The Most Appropriate Explanation For The Following Statement

Question 1. The farmers were most adversely affected by the revenue policy of the British.

1. The farmers were forced to pay excess revenue.
2. The farmers opposed the revenue policy.
3. The farmers refused to pay the revenue.

Answer: 1. The farmers were forced to pay excess revenue.

Question 2. The use of cotton textiles was banned in India by passing an act.

1. There was a need of raising the sale of textiles produced as a result of the Industrial Revolution.
2. The Company wanted to destroy the cotton textile industry of India.
3. The cotton textiles were not durable.

Answer: 2. The Company wanted to destroy the cotton textile industry of India.

Chapter 4 Nature Of Colonial Economy B Industry Commerce Duties Communication And Different From Of Exploitation In Colonial Period Multiple Choice Questions

Question 1. In colonial India, the first jute factory was set up at

1. Rishra
2. Calcutta
3. Chennai
4. Bombay

Answer: 1. Rishra

Question 2. One of the chief items of export was

1. Sugar
2. Raw thread
3. Tea
4. Indigo

Answer: 2. Raw thread

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Question 3. The railway construction began during

1. William Pitt’s tenure
2. William Bentinck’s tenure
3. Dalhousie’s tenure
4. Cornwallis’s tenure

Answer: 3. Dalhousie’s tenure

Question 4. The Second Anglo Burmese war was happened in

1. 1851
2. 1852
3. 1853
4. 1854

Answer:

Question 5. The outgoing of resources is referred to as

1. Drain of wealth
2. Deindustrialization
3. Bargadari system
4. Malnutrition

Answer: 1. Drain of wealth