50 GK Questions With Answers: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
Economics provides a foundational understanding of the country’s economic structure, policies, and development trajectory, which are critical for analyzing contemporary issues such as poverty, unemployment, inflation, fiscal & Monetary policy.
In this blog post, we’ve compiled 50 Most Important GK MCQs on the INDIAN ECONOMY ON THE EVE OF INDEPENDENCE with answers. These questions are ideal for aspirants preparing for UPSC, SSC, Railway, CDS, NDA, State PSCs, and various other government exams. Understanding these facts not only strengthens your static GK but also gives an edge in Microeconomics, Macroeconomics, their terminologies, and the underlying basis that drives the economic policies of the country.
Multiple-Choice Question (50 gk questions with answers)
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- What was the state of the Indian economy on the eve of independence?
a) Fully industrialized
b) Backward and agrarian
c) Highly urbanized
d) Technologically advanced - During the British rule, what was the primary occupation of the Indian population?
a) Manufacturing
b) Agriculture
c) Trade
d) Mining - What percentage of the Indian workforce was engaged in agriculture on the eve of independence?
a) 50%
b) 70-75%
c) 85%
d) 90% - Which sector experienced a decline due to British policies?
a) Agriculture
b) Handicrafts and cottage industries
c) Trade
d) Banking - The decline of Indian handicrafts was primarily due to:
a) Lack of raw materials
b) Competition from British machine-made goods
c) Lack of skilled labor
d) Government support - Which policy of the British led to the de-industrialization of India?
a) Free trade policy
b) Discriminatory tariff policy
c) Export promotion
d) Industrial subsidies - What was the main export of India during the British period?
a) Machinery
b) Raw materials like cotton and jute
c) Finished goods
d) Steel - The drain of wealth from India to Britain was estimated by Dadabhai Naoroji to be about:
a) 1% of GDP
b) 6-7% of national income
c) 10% of GDP
d) 15% of national income - Which infrastructure was developed by the British primarily for their own convenience?
a) Education system
b) Railways
c) Irrigation canals
d) Public health - What was the condition of the Indian railway network on the eve of independence?
a) Well-integrated and modern
b) Developed for British economic interests
c) Focused on rural connectivity
d) Largely unused - The commercialization of agriculture led to:
a) Increased food production
b) Dependence on cash crops
c) Self-sufficiency in food
d) Industrial growth - Which crop was heavily commercialized during British rule?
a) Wheat
b) Indigo
c) Rice
d) Pulses - What was the impact of the partition of Bengal (1905) on the economy?
a) Boosted industrial growth
b) Disrupted trade and agriculture
c) Increased employment
d) Improved infrastructure - The land revenue system that caused widespread peasant indebtedness was:
a) Ryotwari System
b) Permanent Settlement
c) Mahalwari System
d) Zamindari System - What was the literacy rate in India on the eve of independence?
a) 50%
b) 16%
c) 70%
d) 30% - Which sector received the least attention from the British government?
a) Railways
b) Public health
c) Irrigation
d) Defense - The process of de-industrialization in India began around:
a) 1750s
b) 1810s-1830s
c) 1850s
d) 1900s - Which industry suffered the most due to the decline of handicrafts?
a) Steel industry
b) Textile industry
c) Jute industry
d) Mining - The British exported Indian raw materials to:
a) Asian countries
b) Britain and Europe
c) Africa
d) Australia - What was the main purpose of the British economic policies in India?
a) Development of Indian industries
b) Exploitation of Indian resources
c) Promotion of education
d) Rural development - The economic drain theory was propounded by:
a) R.C. Dutt
b) Dadabhai Naoroji
c) Gopal Krishna Gokhale
d) B.G. Tilak - Which of the following was a feature of the Indian economy on the eve of independence?
a) High urbanization
b) Low per capita income
c) Industrial surplus
d) Export-led growth - The British introduced the railway system in India in:
a) 1830
b) 1850
c) 1870
d) 1900 - Which system of land revenue was introduced in parts of Madras and Bombay Presidencies?
a) Permanent Settlement
b) Ryotwari System
c) Mahalwari System
d) Zamindari System - The Permanent Settlement was introduced by the British in:
a) 1793
b) 1793
c) 1800
d) 1810 - What was the impact of the Permanent Settlement on peasants?
a) Increased land ownership
b) Heavy taxation and poverty
c) Improved irrigation
d) Industrial employment - The Mahalwari System was implemented in:
a) Bengal
b) North-Western Provinces
c) Madras
d) Bombay - Which of the following was a result of British economic policies?
a) Growth of small-scale industries
b) Stagnation of the agricultural sector
c) Increase in literacy
d) Development of technology - The jute industry in India was concentrated in:
a) Maharashtra
b) Bengal
c) Punjab
d) Gujarat - The first cotton textile mill in India was established in:
a) Bombay
b) Bombay
c) Calcutta
d) Madras - What was the condition of the Indian currency system on the eve of independence?
a) Fully modernized
b) Based on the British sterling
c) Independent and stable
d) Decentralized - The economic exploitation of India by Britain was facilitated by:
a) Free education
b) Unfair trade practices
c) Local governance
d) Industrial investment - Which of the following was NOT a feature of the Indian economy on the eve of independence?
a) Low life expectancy
b) High industrial output
c) Poverty
d) Unemployment - The British policy of “Home Charges” referred to:
a) Investment in Indian infrastructure
b) Payments made to Britain for administrative costs
c) Subsidies for Indian farmers
d) Development funds - The contribution of the industrial sector to national income was about:
a) 50%
b) 7-8%
c) 20%
d) 30% - Which of the following was a positive contribution of British rule?
a) Industrial revolution
b) Introduction of railways
c) Universal education
d) Agricultural modernization - The famine of 1943 occurred in which region?
a) Punjab
b) Bengal
c) Madras
d) Bombay - What was the primary cause of the Bengal Famine of 1943?
a) Drought
b) War-time policies and hoarding
c) Floods
d) Lack of irrigation - The per capita income in India on the eve of independence was:
a) High and growing
b) Stagnant and low
c) Rapidly increasing
d) Equal to Britain’s - Which of the following was a feature of the occupational structure on the eve of independence?
a) Diversified economy
b) Overwhelming dependence on agriculture
c) Industrial dominance
d) Service sector growth - The British exported finished goods to India to:
a) Promote local industries
b) Destroy Indian handicrafts
c) Encourage trade balance
d) Support agriculture - The first jute mill in India was established in:
a) 1850
b) 1855
c) 1860
d) 1870 - Which of the following was a negative impact of British economic policies?
a) Development of ports
b) Rural indebtedness
c) Expansion of railways
d) Growth of trade - The Indian economy on the eve of independence was characterized by:
a) High savings rate
b) Low level of economic development
c) Industrial surplus
d) Export-led growth - The British policy of “Laissez-faire” in India meant:
a) Government control over industries
b) Minimal government interference in trade
c) Heavy taxation on exports
d) Subsidies for farmers - Which industry saw some growth despite British policies?
a) Handicrafts
b) Jute industry
c) Cotton weaving
d) Silk production - The economic drain included payments for:
a) Indian military expenses
b) British administrative costs
c) Local infrastructure
d) Education subsidies - The Zamindari System was abolished after independence due to:
a) British support
b) Exploitation of peasants
c) Industrial needs
d) Urbanization - The British invested in which sector to extract raw materials?
a) Education
b) Mining
c) Health
d) Agriculture - The overall impact of British rule on the Indian economy was:
a) Progressive and developmental
b) Exploitative and regressive
c) Neutral
d) Industrial-focused
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Answer Key
- b) Backward and agrarian
- b) Agriculture
- b) 70-75%
- b) Handicrafts and cottage industries
- b) Competition from British machine-made goods
- b) Discriminatory tariff policy
- b) Raw materials like cotton and jute
- b) 6-7% of national income
- b) Railways
- b) Developed for British economic interests
- b) Dependence on cash crops
- b) Indigo
- b) Disrupted trade and agriculture
- b) Permanent Settlement
- b) 16%
- b) Public health
- b) 1810s-1830s
- b) Textile industry
- b) Britain and Europe
- b) Exploitation of Indian resources
- b) Dadabhai Naoroji
- b) Low per capita income
- b) 1850
- b) Ryotwari System
- b) 1793
- b) Heavy taxation and poverty
- b) North-Western Provinces
- b) Stagnation of the agricultural sector
- b) Bengal
- b) Bombay
- b) Based on the British sterling
- b) Unfair trade practices
- b) High industrial output
- b) Payments made to Britain for administrative costs
- b) 7-8%
- b) Introduction of railways
- b) Bengal
- b) War-time policies and hoarding
- b) Stagnant and low
- b) Overwhelming dependence on agriculture
- b) Destroy Indian handicrafts
- b) 1855
- b) Rural indebtedness
- b) Low level of economic development
- b) Minimal government interference in trade
- b) Jute industry
- b) British administrative costs
- b) Exploitation of peasants
- b) Mining
- b) Exploitative and regressive
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Tips for Aspirants – Why These GK Questions Matter
If you’re aiming for exams like UPSC, SSC, Railways, or various other State Public Service Commissions, mastering Geography GK is a must. Questions from “INDIAN ECONOMY ON THE EVE OF INDEPENDENCE” are frequently repeated in exams because they establish a logical outlook for Microeconomics, Macroeconomics, their terminologies, and the underlying basis that drives the economic policies of the country.
🟢 These GK questions with answers help in:
- Strengthening your static GK base
- Quick revision of conceptual theories
- Differentiating between similar-sounding options
- Retaining chronological facts like Microeconomics, Macroeconomics terminologies and major events (Pre and Post Colonial Economic situation of the country )
Pro Tip: Revise these questions multiple times, focus on keywords (like industry, exploitation, scarcity, trade practices, indebtedness etc. ), and try linking each theory to a scientist’s name—it helps in elimination strategy!
Conclusion
We hope you found this collection of 50 MCQs on INDIAN ECONOMY ON THE EVE OF INDEPENDENCE helpful in your exam preparation. Economics isn’t just about memorizing terms and time periods—it’s about understanding how our grow to its present 4th came to be and how it continues to change.
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