📚 Part of: British Colonial Economic Policies And Indian Handicraft Industry Mcqs

The main reason for decline of handicraft industry in India during British rule was

Category: Miscellaneous Indian Gk

Correct Answer: A) Discriminatory tariff policy.

Exam Relevance: UPSC Civil Services, IAS Prelims, IAS Mains, State PSC Exams, History Exams

Difficulty: Moderate

Concept notes:

The decline of the handicraft industry in India during British rule was significantly influenced by discriminatory tariff policies. These policies favored British goods and imposed high tariffs on Indian goods, making them less competitive in both domestic and international markets. This led to a decline in demand for Indian handicrafts and a shift towards British manufactured goods.

Common Mistakes:
  • Confusing the impact of commercialization of agriculture with the decline of handicrafts.
  • Misunderstanding the role of the Zamindari system in the decline of handicrafts.
  • Overlooking the broader economic policies that favored British goods over Indian handicrafts.
Explanation:

The decline of the handicraft industry in India during the British colonial period was a multifaceted issue, but one of the primary reasons was the discriminatory tariff policy implemented by the British. This policy was part of a broader economic strategy aimed at making India a market for British manufactured goods and a supplier of raw materials to British industries.

The British East India Company and later the British government imposed high tariffs on Indian goods, making them more expensive and less competitive in both domestic and international markets. At the same time, they ensured that British goods faced lower tariffs or no tariffs at all when entering the Indian market. This created an environment where Indian handicrafts could not compete with the cheaper and more readily available British goods.

The impact of these policies was significant. Indian artisans and craftsmen, who had traditionally produced a wide range of goods, found their markets shrinking as consumers increasingly preferred British goods. This led to a decline in demand for Indian handicrafts, which in turn affected the livelihoods of artisans and craftsmen across the country.

It is important to note that while the discriminatory tariff policy was a major factor, other economic policies and social changes also contributed to the decline of the handicraft industry. For example, the introduction of the railway system and the growth of urban centers led to changes in consumer preferences and market dynamics. Additionally, the commercialization of agriculture and the introduction of the Zamindari system had broader economic impacts that indirectly affected the handicraft industry.

However, the core reason for the decline of the handicraft industry was the deliberate economic strategy of the British to undermine local industries and create a market for their own goods. This strategy was implemented through various policies, with the discriminatory tariff policy being a key component.

In summary, the discriminatory tariff policy played a crucial role in the decline of the handicraft industry in India during British rule. It created an economic environment that favored British goods and made it difficult for Indian handicrafts to compete, leading to a significant decline in the industry and the livelihoods of those dependent on it.

Option Analysis:
  • Option A: This option is correct. The British implemented discriminatory tariff policies that favored British goods and imposed high tariffs on Indian goods. This made Indian handicrafts less competitive in both domestic and international markets, leading to a decline in demand and production. The tariffs were designed to protect British industries and ensure that Indian markets were flooded with British goods, thereby undermining the local handicraft industry.
  • Option B: This option is incorrect. While the commercialization of agriculture did have significant impacts on the Indian economy, it was not the primary reason for the decline of the handicraft industry. The commercialization of agriculture primarily affected the agricultural sector and the rural economy, but the decline of handicrafts was more directly linked to the economic policies that favored British goods over Indian handicrafts.
  • Option C: This option is incorrect. The Zamindari system was a land revenue system introduced by the British, which had significant impacts on land ownership and agricultural production. However, it was not the primary cause of the decline of the handicraft industry. The decline was more directly linked to the economic policies that favored British goods and imposed high tariffs on Indian goods.
  • Option D: This option is incorrect. The correct answer is provided in option A, which identifies the discriminatory tariff policy as the main reason for the decline of the handicraft industry in India during British rule.

Mnemonic: D-TIP: Discriminatory Tariff policy Impacted Production

⬅️ Back to British Colonial Economic Policies And Indian Handicraft Industry Mcqs – Practice all questions