Economics Class 11 Chapter 1 Notes PDF for FREE Download
FAQs on Indian Economy on the Eve of Independence Class 11 Notes: CBSE Economics (Indian Economic Development) Chapter 1
1. What are the key areas covered in the revision notes for Chapter 1, 'Indian Economy on the Eve of Independence'?
These revision notes provide a quick summary of the Indian economy's condition around 1947, focusing on these core areas:
- The state of the agricultural sector and its stagnation.
- The condition of the industrial sector, including the decline of handicrafts.
- The structure and direction of India's foreign trade under colonial rule.
- The demographic profile, highlighting issues like literacy and mortality rates.
- The development of infrastructure such as railways and its primary purpose.
- The lopsided occupational structure dominated by agriculture.
2. How do these notes summarise the state of the agricultural sector before 1947?
The notes explain that the agricultural sector was characterised by extreme backwardness and stagnation. Despite around 85% of the population depending on it, productivity was very low. This was due to the exploitative land settlement systems (like the Zamindari system), lack of investment in irrigation and technology, and the forced commercialisation of agriculture which benefited British industries more than Indian farmers.
3. What was the two-fold motive behind the British policy of de-industrialisation in India?
The revision notes highlight that the British policy of de-industrialisation, which led to the decline of India's famous handicraft industries, had a two-fold motive:
- To turn India into a mere exporter of cheap raw materials needed for modern industries in Britain.
- To make India a sprawling market for the finished products manufactured in British industries, thereby eliminating any potential competition.
4. How do the notes explain the condition of India's foreign trade under colonial rule?
The notes clarify that Britain maintained a monopoly over India's foreign trade. The policies were highly restrictive, forcing India to export primary products like raw silk, cotton, and sugar, while becoming a net importer of finished goods from Britain. A key point for revision is that while India often had a large export surplus, this led to a severe 'drain of wealth' instead of benefiting the Indian economy, as the surplus was used to fund British administrative and war expenses.
5. Why was the commercialisation of agriculture not necessarily beneficial for Indian farmers?
The commercialisation of agriculture, which meant producing cash crops for the market instead of food crops for self-consumption, was largely detrimental to Indian farmers. This was because they were often forced to cultivate crops like indigo or cotton to supply British industries, and they rarely received the actual profits from these sales. This shift led to frequent famines due to a shortage of food grains and pushed many farmers into a cycle of debt.
6. What were the main features of India's demographic profile on the eve of independence?
The demographic condition of India was one of backwardness, as highlighted in the notes. Key features included:
- High birth and death rates, indicating poor public health.
- An extremely low overall literacy rate of less than 16%, with female literacy being even lower at about 7%.
- Poor health facilities, leading to widespread water and airborne diseases.
- A high infant mortality rate and low life expectancy.
7. How did infrastructure development during the colonial era serve British interests more than India's?
While the British did develop infrastructure like railways, ports, and telegraphs, the primary motive was to serve their own colonial interests. For instance, the railways were not built to connect internal markets for Indian producers but to facilitate the transport of raw materials from the hinterlands to ports for export to Britain. Similarly, they enabled the swift movement of the British army to suppress internal rebellions. This development did not lead to a genuine economic upliftment for the Indian populace.
8. For revision, why is it crucial to understand the occupational structure of pre-independence India?
Understanding the occupational structure is vital because it reveals the fundamental backwardness of the economy. The overwhelming dominance of the agricultural sector, which employed around 70-75% of the workforce, showed a lack of industrialisation. The manufacturing and service sectors were nascent, employing only 10% and 15-20% respectively. This lopsided structure, a direct result of colonial policies, explains the widespread poverty and the slow economic growth that India inherited at independence.

















