Q1. Why did Indian handicrafts face extinction after 1813?
- Rise of Indian nationalism
- British factories were destroyed in wars
- Indian goods were banned globally
- They couldn’t compete with cheap British machine-made products
Correct Option: 4. They couldn’t compete with cheap British machine-made products.
Explanation: After the Industrial Revolution, British goods were mass-produced and cheaper. Indian artisans, lacking modern tools and protection, lost their domestic and foreign markets.
Q2. What was the effect of the 1813 Charter Act on British-Indian trade relations?
- It granted more rights to Indian merchants
- It ended the East India Company’s trade monopoly
- It imposed higher tariffs on British goods
- It restricted British industrialists from trading with India
Correct Option: 2. It ended the East India Company’s trade monopoly.
Explanation: British industrialists succeeded in abolishing the Company’s trade monopoly, opening India to free trade, especially for British manufacturers seeking new markets.
Q3. Which strategy did the British use to expand the market for their goods in India?
- Reducing land revenue to increase purchasing power
- Encouraging Indian factories
- Banning local markets
- Promoting Indian goods in Europe
Correct Option: 1. Reducing land revenue to increase purchasing power.
Explanation: To boost consumption of British goods, some British leaders advocated lowering taxes on peasants, hoping they would then buy more imported goods.
Q4. How did British imports to India change between 1813 and 1856?
- They decreased due to Indian resistance
- They stayed the same
- They increased dramatically
- They were banned under Company rule
Correct Option: 3. They increased dramatically.
Explanation: British cotton goods imports rose from £110,000 in 1813 to £6.3 million in 1856, showing a nearly 60-fold increase, a clear sign of aggressive British economic domination.
Q5. Why didn’t India protect its industries with high tariffs like other countries?
- India was under colonial rule
- Indian rulers supported free trade
- Indian industry was already too strong
- Tariffs were banned by international law
Correct Option: 1. India was under colonial rule.
Explanation: A colonial government in India prioritized British interests, not Indian. While other nations protected their industries, India was forced to accept free entry of British goods, leading to industrial decline.