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British Economic Policy: Revenue, Drain & Industry: 101 previous year questions

UPSC has asked 101 questions on British Economic Policy: Revenue, Drain & Industry between 1980 and 2026: CSE 32 · CAPF 29 · CDS 25 · NDA 5 · Geo-Scientist 4 · EPFO (AO/EO) 2 · CISF (LDCE) 2 · EPFO (APFC) 2. 49 of them came after 2015, so this is a live topic examiners keep returning to. 32 were set in Civil Services Prelims; the rest come from UPSC's other papers, which draw on the same question bank.

Practise these 101, one at a timeRead the questions

Tap an option to check yourself. Answers follow the official UPSC key; where the key was dropped or disputed the question is not shown.

Consider the following statements about the Bengal countryside at the time of the Permanent Settlement: 1. The zamindars‘ troops were disbanded. 2. Within the villages, the power of jotedars was more effective than that of zamindars. 3. The East India Company made a rule that the property of women would not be taken over. 4. Adhiyars were sharecroppers on the land owned by bargadars. Which of the statements given above are correct ?

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Answer A (official UPSC key)Permanent Settlement Bengal → zamindars' troops disbanded; jotedars more powerful in villages; adhiyars sharecroppers | NOT: rule protecting women's property

Consider the following statements about the initial development of railways in India by the British 1. Private financial investors for railways would get land free from the British Government in India. 2. The investors would get a return of 5 percent on their capital from the government if they ran at a Loss or secured inadequate profit. 3. The railways would be jointly managed with the government. How many of the above statements is/are correct?

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Answer B (official UPSC key)Two correct → railway investors got free land and a 5 percent guaranteed return | NOT: jointly managed with the government

With reference to revenue collection by Cornwallis, consider the following statements : 1. Under the Ryotwari Settlement of revenue collection, the peasants were exempted from revenue payment in case of bad harvests or natural calamities. 2. Under the Permanent Settlement in Bengal, if the Zamindar failed to pay his revenues to the state, on or before the fixed date, he would be removed from his Zamindari. Which of the statements given above is/are correct ?

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Answer B (official UPSC key)Permanent Settlement → Zamindar removed if revenue not paid by the fixed date | Ryotwari → no exemption for bad harvests

Which of the following statements are correct ? 1. British ‗trade surplus‘ with India in the nineteenth century meant that the value of British exports to India was much higher than the value of British imports from India. 2. India played a crucial role in the late-nineteenth-century world economy by helping Britain balance its deficits. 3. Britain grew opium in India and exported it to China and, therefore, for a while after the 1820s, opium became India‘s single largest export. 4. The nineteenth century saw export of Indian raw materials decline, and that of manufactured goods increase. Select the answer using the code given below :

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Answer D (official UPSC key)British trade surplus with India; India helped Britain balance deficits; opium grown in India exported to China | NOT: raw material exports declined, manufactured exports rose

Which of the following statements about „Agency Houses‟ is/are correct? 1. They were important commercial formations in the late eighteenth and nineteenth century India. 2. The operation of managing agencies remained confined to Calcutta. Select the correct answer using the code given below.

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Answer C (official UPSC key)Agency Houses → important commercial formations of the late eighteenth and nineteenth century; managing agencies confined to Calcutta

Consider the following statements : 1. In the 19th century, peasants in various parts of India rose in revolt against moneylenders and grain dealers. 2. In May 1875, at village Supa in Poona District in the Bombay Deccan, peasants attacked shopkeepers, burnt the bahi khatas (account books), looted grain shops and set fire to the houses of Sahukars. Which of the statements given above is/are correct ?

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Answer C (official UPSC key)19th-century peasant revolts against moneylenders and grain dealers | May 1875, Supa (Poona) → peasants attacked Sahukars, burnt bahi khatas

Which one of the following statements with regard to ryotwari settlement is not correct ?

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Answer D (official UPSC key)NOT correct about ryotwari → strengthened the zamindars and weakened the peasantry

Which of the following statements about the first Indian Factory Act passed in 1881 is/are correct ? 1. The Act dealt primarily with the problem of child labour. 2. The Act laid down that children between 7 years and 12 years of age would not work for more than 9 hours a day. Select the correct answer using the code given below :

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Answer C (official UPSC key)First Factory Act 1881 → dealt primarily with child labour; children 7-12 years limited to 9 hours a day

Which of the following statements correctly explain the impact of the Industrial Revolution on India during the first half of the nineteenth century?

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Answer A (official UPSC key)Industrial Revolution's impact (first half of the nineteenth century) → Indian handicrafts ruined

Indigo cultivation in India declined by the beginning of the 20th century because of

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Answer B (official UPSC key)Indigo decline by early 20th century → unprofitable in the world market due to new inventions

What was the consequence of Permanent Settlement on rural society in Bengal ?

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Answer B (official UPSC key)Permanent Settlement in Bengal → rich peasants (jotedars) consolidated their position in villages

The Deccan Agriculturalists' Relief Act of 1879 was enacted with which of the following objectives

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Answer C (official UPSC key)Deccan Agriculturalists' Relief Act 1879 → restrict sale of land for indebtedness to outsiders

Consider the following Statements Statement I : The Permanent Settlement was rarely extended to any region beyond Bengal. Statement II : After 1810, the agricultural prices declined affecting adversely the income of the Bengal Zamindars. Codes

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Answer C (official UPSC key)Permanent Settlement rarely extended beyond Bengal → true | Agricultural prices after 1810 → rose, not declined

Which of the following statements about town planning in British India in early 19th century is/are correct? 1. The funds for town improvement were also raised through public lotteries. 2. The threats of epidemics gave an impetus to town planning in the early decades of 19 th centuiy. Select the correct answer using the code given below.

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Answer C (official UPSC key)Early 19th-century town planning → public lotteries raised funds; epidemic threats gave impetus

Consider the following Statements Statement I : Dadabhai Naoroji argued that what was being drained out was ‗potential surplus‘ that could generate more economic development in India if invested in India Statement II : Imperialists believed that India was brought into the large capitalist world market and that was in itself a progress towards modernization Codes

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Answer B (official UPSC key)Naoroji → drained wealth was 'potential surplus' | Imperialists → world market integration was modernization | II not the explanation of I

Which one of the following statements about land tenure system is NOT correct ?

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Answer C (official UPSC key)NOT correct → under Mahalwari, agricultural lands belonged to the Government

Which one of the following statements about the Colonial economy is NOT correct ?

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Answer B (official UPSC key)NOT correct → laissez-faire actively promoted indigenous capitalism

Which of the following was/were the reason/reasons for the lack of economic development in India in the 19 th century? 1. Officially the British Government was committed to a policy of laissez-faire, but it was actually a policy of discriminatory intervention. 2. European entrepreneurs had connections to banks and agency houses, while Indians had to rely on kin, family and caste men. 3. When plantations were transferred to individual capitalist ownership, native investors were deliberately ignored. Select the correct answer using the code given below.

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Answer D (official UPSC key)Lack of 19th-century development → discriminatory intervention under laissez-faire; Europeans had bank/agency links, Indians relied on kin; natives ignored in plantation transfers

Consider the following statements: 1. The Factories Act, 1881 was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions. 2. N.M. Lokhande was a pioneer in organizing the labor movement in British India. Which of the above statements is/are correct?

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Answer B (official UPSC key)N.M. Lokhande → pioneer of the labour movement | Factories Act 1881 → not to fix wages or allow trade unions

Which of the following is NOT a characteristic of the Permanent Settlement ?

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Answer B (official UPSC key)NOT a Permanent Settlement feature → attention to customary occupancy rights of peasants

Which of the following is / are characteristic(s) of the Ryotwari system? 1. It was the brainchild of Thomas Munro 2. It was meant to reduce intermediaries 3. Cultivating peasants were gradually impoverished by the system 4. It was introduced in parts of Madras and Bengal Presidency Select the correct answer using the code given below:

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Answer B (official UPSC key)Ryotwari → Thomas Munro's brainchild; reduced intermediaries; peasants gradually impoverished | Not Bengal Presidency

Consider the following Statements Statement I: India‘s share of world manufacturing output steadily declined during the 19th and the 20th centuries. Statement II: There was no absolute decline in production in India during the colonial rule. Codes

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Answer C (official UPSC key)India's share of world manufacturing declined in the 19th and 20th centuries → true | No absolute decline in production → false

Which of the following statements with regard to construction of railways in colonial India by the British companies is /are NOT true ? 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India 2. The railways were to be managed mainly by the Government 3. There was no system of preferential freight charges 4. The companies were to get the land free from the Government Select the correct answer using the code given below :

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Answer B (official UPSC key)NOT true of colonial railways → managed mainly by Government; no preferential freight

The Assam Company, consisting of European tea planters, remained the virtual proprietor of the tea industry till 1850. In the 1850s, who among the following established two small proprietary tea gardens of his own, which were confiscated by the State after his execution for treason in 1858 ?

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Answer D (official UPSC key)Established two tea gardens, confiscated after execution for treason (1858) → Maniram Dewan

The Permanent Settlement was rarely extended to other regions because

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Answer D (official UPSC key)Permanent Settlement rarely extended → rising prices after 1810; Ricardo's theories; direct settlement with the ryot (all of the above)

Under the forceful thrust of British rule, a rapid transformation of the Indian economy took place. In this context, which of the following statements is/ are correct? 1. Indian economy was transformed into a colonial economy in the 19th century whose structure was determined by Britain's fast developing industrial economy. 2. The influx of cheap Indian products into England gave a great blow to English textile industries. 3. The 19th century saw the collapse of the traditional Indian village economy and fresh economic alignment along commercial lines. Select the correct answer using the code given below :

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Answer A (official UPSC key)Indian economy became a colonial economy shaped by Britain's industrial needs | NOT: cheap Indian goods blew English textiles | NOT: collapse of village economy with commercial realignment

Which one among the following statements about industries in colonial India is not correct?

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Answer D (official UPSC key)NOT correct → cotton industry grew due to government support | Jute → almost entirely European-owned

The first major boost to modern industry in India happened in the 1860s. It was a direct result of

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Answer B (official UPSC key)First major boost to modern industry (1860s) → European demand due to the American Civil War

Consider the following Statements Statement I : The Jajmani system was one in which the village artisans supplied traditionally fixed quantities of their products to peasant families in return for shares in the harvest Statement II : The Jajmani system was a system of the Jotedars (rich farmers) and the Bargadars (sharecroppers). Codes

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Answer C (official UPSC key)Jajmani → artisans supplied fixed products to peasant families for harvest shares | Jotedar-Bargadar → not the Jajmani system

Consider the following Statements Statement I: The Permanent Zamindari Settlement of land created a new class of landlords. Statement II: The new class of landlords became strong political allies of the British and were interested in the continuance of British dominion. Codes

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Answer A (official UPSC key)Permanent Settlement created a new class of landlords | They became political allies of the British | II explains I

Consider the following Statements Statement I: The social institutions of caste in India underwent major changes in the colonial period. Statement II: Caste, in contemporary society is more a product of ancient Indian tradition than of colonialism. Codes

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Answer B (official UPSC key)Caste changed greatly in the colonial period → true | Contemporary caste more ancient tradition than colonialism → true | II not the explanation of I

Consider the following statements Statement I: The economy of India in the 19th century came to a state of ruin under English East India Company. Statement II: English East India Company‘s acquisition of Diwani right led to the miseries of the peasants and those associated with the traditional handicrafts industry of India. Codes

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Answer A (official UPSC key)Indian economy ruined under the Company (19th century) | Diwani rights caused misery of peasants and artisans | II explains I

Match List-I with List-II and select the correct answer using the code given below the Lists (British Policy) (Consequence) A. Agrarian Settlements 1. Partition B. Divide and Rule 2. Famines and popular rebellions C. Excluding Indians of from Government 3. Increase of home charges Jobs D. Wars and Conquests 4. Alienation of the Indian middle class

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Answer C (official UPSC key)Agrarian Settlements → famines and popular rebellions | Divide and Rule → Partition | Excluding Indians from jobs → alienation of the middle class | Wars and Conquests → increase of home charges

Which of the following statements about Permanent Settlement are correct? 1. It conferred proprietary rights to peasants. 2. The Zamindars were recognised as the proprietors of land. 3. The government permanently fixed the land revenue demand. 4. The Zamindars acted as the middlemen between the peasants and the government. Select the correct answer using the codes given below

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Answer A (official UPSC key)Permanent Settlement → Zamindars proprietors; revenue permanently fixed; Zamindars as middlemen | NOT: proprietary rights to peasants

Dalhousie has been regarded as the maker of modern India because he brought about reforms and made a beginning in many fields. Which one among the following was not one of his schemes of reforms?

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Answer D (official UPSC key)Not a Dalhousie reform → Factories Act for Indian labour

Which one among the following statements is not true of the jajmani system?

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Answer C (official UPSC key)NOT true of jajmani → introduced under colonial pressure

The most effective contribution made by Dadabhai Naoroji to the cause of the Indian National Movement was that he [2012 ] 1. exposed the economic exploitation of India by the British 2. interpreted the ancient Indian texts and restored the self-confidence of Indians 3. stressed the need for eradication of all the social evils before anything else Which of the statements given above is/are correct?

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Answer A (official UPSC key)Dadabhai Naoroji's main contribution → exposed British economic exploitation of India

Consider the following : 1. Assessment of land revenue on the basis of nature of the soil and the quality of crops. 2. Use of mobile cannons in warfare. 3. Cultivation of tobacco and red chillies. Which of the above was/were introduced into India by the English?

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Answer D (official UPSC key)Introduced by the English → none | Soil-based revenue assessment, mobile cannons, tobacco and chillies → not English introductions

With reference to Ryotwari Settlement, consider the following statements : [2012] 1. The rent was paid directly by the peasants to the Government. 2. The Government gave Pattas to the Ryots. 3. The lands were surveyed and assessed before being taxed. Which of the statements given above is/are correct?

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Answer C (official UPSC key)Ryotwari → rent paid directly to Government; pattas to ryots; lands surveyed and assessed before taxation

Which of the following statements regarding Permanent Settlement is/are correct? 1. The Permanent Settlement was introduced in parts of the Madras and Bombay Presidencies. 2. The Permanent Settlement created a new class of landlords with hereditary rights on land. 3. The landlords created by the Permanent Settlement could never be removed under any circumstance. Select the correct answer using the codes given below

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Answer B (official UPSC key)Permanent Settlement → created hereditary landlords | NOT: in Madras and Bombay | Landlords → could be removed for non-payment

Which one among the following statements appropriately defines the term ‗Drain Theory‘ as propounded by Dadabhai Naoroji in his work ‗Poverty and Un–British Rule in India‘?

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Answer A (official UPSC key)Drain Theory → part of India's wealth exported to Britain with no material return

With reference to the period of colonial rule in India, ―Home Charges‖ formed an important part of drain of wealth from India. Which of the following funds constituted ―Home Charges‘‘ ? [2011] 1. Funds used to support the India office in London. 2. Funds used to pay salaries and pensions of British personnel engaged in India. 3. Funds used for waging wars outside India by the British. Options

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Answer D (official UPSC key)Home Charges → India office in London; salaries and pensions of British personnel; wars outside India

The tendency for increased litigation was visible after the introduction of the land settlement system of Lord Cornwallis in 1793. The reason for this is normally traced to which of the following provisions ?

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Answer D (official UPSC key)Litigation after the 1793 Cornwallis settlement → none of the listed provisions

Consider the following Passage The permanent settlement vested the land ownership right in the zamindars, who previously enjoyed only revenue collecting rights. Therefore, those who lost out in this settlement were the peasants, who were left at the mercy of the zamindars. The customary occupancy right was ignored and they were reduced to the status of tenants. The provision of patta, or written agreement between the peasant and the zamindar providing a record of the amount of rent to be paid, was rarely followed by the zamindars. Nor was it liked by the peasants who always feared to lose in any formal record of rights and obligations. The burden of high revenue assessment was thus shifted to the peasants, who were often also called upon to pay illegal cesses. The subsequent regulations of 1799 and 1812 gave the zamindars the right to seize property of the tenants in case of non-payment of rent without any permission of a court of law. It is no wonder, therefore, that as a cumulative effect of this support to the coercive power of the zamindars, the condition of the actual cultivators declined under the Permanent Settlement. According to the passage, the permanent settlement vested :

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Answer B (official UPSC key)Permanent settlement vested (per passage question) → land ownership rights to the state (per key)

Consider the following Passage The permanent settlement vested the land ownership right in the zamindars, who previously enjoyed only revenue collecting rights. Therefore, those who lost out in this settlement were the peasants, who were left at the mercy of the zamindars. The customary occupancy right was ignored and they were reduced to the status of tenants. The provision of patta, or written agreement between the peasant and the zamindar providing a record of the amount of rent to be paid, was rarely followed by the zamindars. Nor was it liked by the peasants who always feared to lose in any formal record of rights and obligations. The burden of high revenue assessment was thus shifted to the peasants, who were often also called upon to pay illegal cesses. The subsequent regulations of 1799 and 1812 gave the zamindars the right to seize property of the tenants in case of non-payment of rent without any permission of a court of law. It is no wonder, therefore, that as a cumulative effect of this support to the coercive power of the zamindars, the condition of the actual cultivators declined under the Permanent Settlement. Before the permanent settlement the peasants enjoyed :

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Answer D (official UPSC key)Before the permanent settlement peasants enjoyed → revenue collecting rights (per key)

Consider the following Passage The permanent settlement vested the land ownership right in the zamindars, who previously enjoyed only revenue collecting rights. Therefore, those who lost out in this settlement were the peasants, who were left at the mercy of the zamindars. The customary occupancy right was ignored and they were reduced to the status of tenants. The provision of patta, or written agreement between the peasant and the zamindar providing a record of the amount of rent to be paid, was rarely followed by the zamindars. Nor was it liked by the peasants who always feared to lose in any formal record of rights and obligations. The burden of high revenue assessment was thus shifted to the peasants, who were often also called upon to pay illegal cesses. The subsequent regulations of 1799 and 1812 gave the zamindars the right to seize property of the tenants in case of non-payment of rent without any permission of a court of law. It is no wonder, therefore, that as a cumulative effect of this support to the coercive power of the zamindars, the condition of the actual cultivators declined under the Permanent Settlement. Patta was a written agreement between the :

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Answer A (official UPSC key)Patta → written agreement between peasant and zamindars recording the rent

Prior to 1813, which among the following measures, was not adopted by the British to exploit the Indians economically ?

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Answer C (official UPSC key)Not a pre-1813 British measure → Free Trade Policy

Which of the following statements above Ryotwari settlement is/are correct? 1. It recognised the cultivators as the owner of land. 2. It was a temporary settlement. 3. It was introduced later than the permanent settlement. Select the correct answer using the codes given below

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Answer D (official UPSC key)Ryotwari → cultivators recognised as owners; a temporary settlement; later than the Permanent Settlement

Consider the following statements : 1. The Indian cities like Dacca, Murshidabad and Surat were known, all over the world as centers of trade and industry in the pre-colonial period. 2. Such centers of trade and industry went down in the face of foreign competition in the colonial period. 3. Indian artisans, manufacturers and weavers were provided alternative employment by the British Indian government after the decline of these centers of trade. Which of the statements given above is/are not correct ?

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Answer C (official UPSC key)NOT correct → British provided alternative employment to artisans after decline | Dacca, Murshidabad, Surat → pre-colonial trade centres that declined under foreign competition

Consider the following statements: [2009] 1. The first telegraph line in India was laid between Kolkata (formerly Calcutta) and Diamond Harbour. 2. The first Export Processing Zone in India was set up in Kandla. Which of the statements given above is/are correct?

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Answer C (official UPSC key)First telegraph line → Kolkata to Diamond Harbour | First Export Processing Zone → Kandla

During the colonial period in India, what was the purpose of the Whitley Commission? [2003]

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Answer B (official UPSC key)Whitley Commission → report on labour conditions and recommend

Under the Permanent Settlement, 1793, the Zamindars are required to issue pattas to the farmers which were not issued by many of the Zamindars. The reason was: [2001]

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Answer B (official UPSC key)Zamindars did not issue pattas → no officials checked upon the Zamindars

Match List-I with List-II and select the correct answer using the codes given below the list: List-I: A. Land allotted to big feudal landlords; B. Land allotted to revenue farmers of rent collectors; C. Land allotted to each peasant with the right to sublet, mortgage transfer, gift or sell; D. Revenue settlements made at village level List-II: 1. Jagirdari System; 2. Ryotwari System; 3. Mahalwari System; 4. Zamindari System

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Answer B (official UPSC key)Land to big feudal landlords → Jagirdari | Land to revenue farmers → Zamindari | Land to each peasant with rights to sublet, mortgage, sell → Ryotwari | Village-level settlement → Mahalwari

Which one of the following statements does correctly defines the term 'drain theory' as propounded by Dadabhai Naoroji?

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Answer B (official UPSC key)Drain theory → part of India's national wealth exported to Britain with no material return

Why did India industrialise only gradually in the time of Britishers?

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Answer C (official UPSC key)India industrialised only gradually → the British seized and handicapped Indian cottage industries

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