Statement I: The economy of India in the 19th century came to a state of ruin under English East India Company.

Question

The following questions consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answers to these questions using the codes given below Codes

(a) Both the statements are true and Statement II is the correct explanation of Statement I

(b) Both the statements are true, but Statement II is not the correct explanation of Statement I

(c) Statement I is true, but Statement II is false

(d) Statement I is false, but Statement II is true

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’* acquisition of Diwani right led to the miseries of the peasants and those associated with the traditional handicrafts industry of India.

Answer 1

(a) Both statements are true and statement ll is correct explanation of statement I Britain ruined India’* previous economy and industries as a result of Britain forcing them to import their goods from Britain and not buy their own goods from India. Industries such as the handmade cloth industry, clock-making, metal, and carpentry industries, fell because cloth was made of better quality for cheaper in Britain because of mass production.