CA Foundation · Business Economics · Indian Economy
Which of the following is a correct statement about the effect of British policy on India's traditional handicraft industries, such as cotton textiles?
Cheap British machine-made goods entered India at low or no duty, while Indian handicrafts faced high tariffs in Britain. This discriminatory tariff policy destroyed markets for Indian artisans, causing the decline of traditional handicrafts and de-industrialisation of India during colonial rule.
- AHeavy export duties on British goods protected Indian handicrafts
- BImports of cheap machine-made British goods with low or no duties, together with high tariffs on Indian goods entering Britain, caused decline of traditional handicrafts and de-industrialisationCorrect
- CIndian handicrafts expanded rapidly as British demand for them grew steadily throughout the nineteenth century
- DThe colonial government supported handicrafts with subsidies and modern machinery
Explanation
Britain's tariff policy was discriminatory: Indian handicraft exports faced heavy duties in Britain, while British machine-made goods entered India at minimal duty. Indian artisans lost both foreign and domestic markets, causing de-industrialisation. The claim that handicrafts were protected or subsidised contradicts this.
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
- In a year, the GVA of an economy is ₹300 lakh crore, of which the primary sector contributes ₹54 lakh crore and the secondary sector ₹72 lak…
- The Lorenz curve is used in the study of inequality in India. If the Lorenz curve of income distribution moves closer to the line of equal d…
- The Minimum Support Price (MSP) system for farm produce in India is mainly intended to:
- Which statement about India's occupational structure at Independence is correct?
- India's labour force participation rate has been a concern for policymakers, particularly among women. Which of the following is a structura…
- The government procures 40 lakh tonnes of wheat at an MSP of ₹2,000 per quintal. Given that 1 tonne equals 10 quintals, what is the total pr…