1. With reference to the weekly ‘Yugantar’, consider the following statements:
(1) It was started during the Swadeshi Movement by Sri Aurbindo.
(2) It preached for open revolt and contained articles on guerrilla warfare.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c) Explanation: Statement 1 is correct. The partition of Bengal in 1905 led to a general outburst of revolt which favoured the rise of the extremist party and the great nationalist movement. Sri Aurobindo’s activities were then turned more and more in this direction and the secret revolutionary action became a secondary and subordinate element. He took advantage, however, of the Swadeshi movement to popularise the idea of violent revolt in the future. For furtherance of movement and revolutionaries ideas he started a weekly paper, Yugantar. Statement 2 is correct. Yugantar promoted the ideas of open revolt and the absolute denial of the British rule and included such items as a series of articles containing instructions for guerrilla warfare.
2. Who among the following brought out the journal ‘Bande Mataram’ from Paris?
(a) Sachin Sanyal
(b) Hema Chandra Ghosh
(c) Madame Bhikaji Cama
(d) Ras Behari Bose
Answer: (c) Explanation: Madame Bhikaiji Cama was among the prominent figures in the Indian independence movement. She led the revolutionaries’ activities from France. Cama published and distributed revolutionary literature for the movement, including Bande Mataram. Additional Information: Aurobindo Ghosh too, in 1906, started a newspaper ‘Bande Mataram’.
3. The Mughal emperor, Farrukhsiyar, issued the farman in which ‘Dastak’ was granted to the East India Company in 1717. Which of the following statement is not correct regarding ‘dastak’?
(a) It exempted the goods covered by the English factories from payment of custom duties.
(b) It was applicable for the private trade of the individual servants of the Company.
(c) It led to monopolistic tendencies in the Indian market.
(d) It became one of the reasons for hostility between the Bengal Nawab and the English.
Answer: (b) Explanation: In 1715, an English mission led by John Surman to the court of the Mughal emperor Farrukhsiyar secured three famous farmans, giving the Company many valuable privileges in Bengal, Gujarat and Hyderabad. The farmans thus obtained were regarded the Magna Carta of the Company. Under the conditions of the farmans, a dastak was given to the East India Company that had to be signed by the President of the Calcutta Council. Statement (a) is correct: The dastak was the trade permit which exempted the goods covered by the English factory from payment of custom duties. Statement (b) is not correct: The dastaks were not applicable for the private trade of the individual servants of the Company as these duties formed an important source of revenues. But it was largely misused by the Company official leading to loss of tax revenue to the State. Statement (c) is correct: Because of its misuse, local merchants faced unequal competition with the Company merchants leading to monopolistic tendencies in the Indian market favouring English. By an imperial farman, the English company had obtained the right to trade in Bengal without paying transit dues or tolls. However, the servants of the Company also claimed the same privileges for their private trade. The Company’s servants also sold dastak to Indian merchants for a commission. Statement (d) is correct: The misuse of dastaks later became one of the bones of contention between the English and the Bengal Nawab and the reason for the Battle of Plassey in 1757.
4. The colonial government had drained out the wealth from India to England for which the Indians got no adequate economic or material returns. Which of the following were the means/forms of drain of wealth by the British government?
(1) Home charges
(2) Council bills
(3) Profits on foreign investment in India
(4) Salaries and pensions of British civil and military officials working in India.
(5) India as a supplier of cheap raw material to the British industries
Select the correct answer using the code given below:
(a) 1 and 5 only
(b) 2 and 3 only
(c) 1, 4 and 5 only
(d) 1, 2, 3, 4 and 5
Answer: (d) Explanation: The term ‘economic drain’ refers to a portion of national product of India which was not available for consumption of its peoples but was being drained away to Britain for political reasons and India was not getting adequate economic or material returns for it. The drain theory was put forward by Dadabhai Naoroji in his book “Poverty and UnBritish Rule in India”. The major components of economic drain are:
• The salaries and pensions of British civil and military officials working in India, interests on loans taken by Indian Government, profits of British capitalists in India were all being met by the revenues collected in India.
• The East India Company also provided military help to the native Indian Princes in their fight for power against their rival claimants. Large part of this money went into the personal pockets of the British. Some of it was used to buy Indian products which were sold across Europe, thus profit gained went into the pockets of the British.
• The expenditure of armed forces required to maintain the expansive empire across the world was partly met by Indians revenues and personnel.
• Unequal terms of trade: The main aim of British policy in India was to make her a valuable market of the home country and to transform India into a source of cheap raw material. India experienced deindustrialization over the half century following 1810 due to terms of trade shocks.
• Home charges: It represented the single biggest source of the direct drain of wealth, the expenses in British borne by the Indian treasury. These home charges included pensions to British Indian officials, army officers, military and other stores purchased in England. These were huge burden on the finances and contributed to a sustained and continuous deficit in the budget throughout 19th century.
• Council Bills: These were the actual means through which money was transferred. The would-be British purchasers of Indian exports bought Council bills from the Secretary of State in return for Sterling. The Council bills were then exchanged for rupees from the Government out of India’s revenues. Thus, exchanged rupees were used to buy Indian goods for exports.
• European Agency Houses and European Banks: With the rise of East India Company and gradual flood of European traders in India, the indigenous banking houses declined and were replaced by European Agency Houses and Banks. The Company servants opened these houses and banks after accumulating huge fortunes through their illegal private trade. Hence, all are correct.
5. With reference to economic critique of colonial policies, consider the following pairs:
Work : Author
1. Poverty and Un-British Rule in India : Dadabhai Naoroji
2. Economic History of India : Rajani Palme Dutt
3. India Today : Romesh Chandra Dutt
Which of the pairs given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (a) Explanation: The economic criticism of colonialism is one of the most important lines of thought in the history of Indian freedom movement. The leaders who developed this economic criticism were known as the ‘Moderates’ and are also popularly clubbed as the economic nationalists. The main proponents of economic nationalism:
• Dadabhai Naoroji (the Grand Old Man of India) wrote ‘Poverty Un-British Rule in India(1867)’. He also known as the high priest of the drain theory.
• Justice Mahadev Govind Ranade
• Romesh Chandra Dutt wrote ‘Economic History of India (1901)’.
• G. V. Joshi
• G. Subramania Iyer
• Gopal Krishna Ghokale
• Prithwis Chandra Ray
• Rajani Palme Dutt wrote ‘India Today(1940)’. Hence, only pair 1 is correct.