Question

Which of the following best describes the state of the Indian economy prior to British rule?

Options

• An economy exclusively dependent on international trade

• A self-sufficient and well-functioning economy

• An underdeveloped economy dependent on foreign imports

• An economy with no manufacturing or handicraft base

Answer 1

Before British rule, India had a self-sufficient and well-functioning economy. It had agriculture as its backbone and globally recognised handicraft industries, making it economically independent and productive.