CA Foundation · Business Economics · Indian Economy
Which of the following correctly explains why colonial India's agricultural sector stagnated despite employing most of the population?
Agriculture stagnated mainly because land revenue systems like zamindari imposed heavy payments on cultivators, giving little incentive or means to invest, while the colonial government spent little on irrigation and technology. Productivity stayed low, and commercialisation did not raise food grain yields, so the first option is correct.
- ALand settlement systems such as zamindari, heavy revenue demands, and low investment in irrigation and technologyCorrect
- BLarge public investment in irrigation and fertilisers by the colonial state
- CComplete abolition of intermediaries between the state and cultivators
- DRapid commercialisation that raised food grain output per hectare significantly
Explanation
Zamindari and similar systems burdened cultivators with high rents and gave them little incentive to invest. The state spent little on irrigation and technology, and commercialisation shifted land to cash crops without raising food output per hectare. Hence stagnation, not the other options, is the correct description.
Did you get it right without looking?
One question tells you little. A timed set on Indian Economy shows your real accuracy, how long you take and where you lose marks.
More Indian Economy questions
- Which of the following types of unemployment is most characteristic of the agricultural sector in India, where several family members work o…
- Which of the following was a trade policy reform introduced in India as part of the 1991 reforms?
- Which sector of the Indian economy employs the largest share of the country's workforce, even though its share in Gross Value Added is compa…
- A country's population has a high proportion of persons in the working age group (15-59 years) and a falling dependency ratio. This situatio…
- The Twelfth Five Year Plan (2012-17) was the last one before planning was discontinued. Its theme was best described as:
- Which of the following best describes 'indicative planning' as practised in India after 1991?