Indian Economy On The Eve Of Independence Test - 1

Among the notable estimators —Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C. Desai —it was Rao, whose estimates during the colonial period was considered very significant. However, most studies did find that the country ’s growth of aggregate real output during the first half of the twentieth century was less than two per cent coupled with a meagre half per cent growth in per capita output per year.

The growth of the aggregate real output (GDP) was less than 2% during the first half of the 20th century and growth of per capita income was just 0.5%.

So option D is correct.

India 's economy under British rule remained primarily agrarian - around 85% country 's population lived in villages and derived livelihood directly or indirectly through agriculture.

Agriculture, with its allied sectors, is the largest source of livelihoods in India. 70 percent of its rural households still depend primarily on agriculture for their livelihood, with 82 percent of farmers being small and marginal. In 2017-18, total food grain production was estimated at 275 million tonnes (MT).

So option A is correct.

Low productivity in agriculture is due to low level of technology. In India farm farmers are still using poor and old agriculture technology of farming. in some areas farmer still do agriculture for survival.

So option B is correct.

Capital goods industry means industries which can produce machine, tools etc. which are, in turn, used for producing articles for current consumption.

So option B is correct.

The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country 's economy. It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy.

So option C is correct.

Gross Domestic Product:

• Definition:
  • GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year.
  • GDP is the total value of all final goods and services  produced during a particular year.
  • GDP growth rate is an important indicator of the economic performance of a country.
  • It counts the goods and services produced within the country and hence does not consider the products that the country imports from another country.
  • It can be measured by three methods, namely,
  • Output Method:
    • This measures the monetary or market value of all the goods and services produced within the borders of the country.
    • In order to avoid a distorted measure of  GDP due to price level changes, GDP at constant prices o real GDP is computed. GDP (as per output method) = Real GDP (GDP at constant prices) –Taxes + Subsidies.
  • Expenditure Method:
    • This measures the total expenditure incurred by all entities on goods and services within the domestic boundaries of a country.
    • GDP (as per expenditure method) = C + I + G + (X-IM) C: Consumption expenditure, I: Investment expenditure, G: Government spending and (X-IM): Exports minus imports, that is, net exports.
  • Income Method:
    • It measures the total income earned by the factors of production, that is, labour and capital within the domestic boundaries of a country.
    • GDP (as per income method) = GDP at factor cost + Taxes –Subsidies.

Tata Iron and Steel Company was founded  and established on 26 August 1907.

So option C is correct.

Railways industries which were under the public sector during the colonial period.

So option B is correct.

The use of fertilizers was negligible. It also added up to aggravate the plight of the farmers.

So option B is correct.