UGC NET History Practice Question

From the free UGC NET History Mock Test 8 — Unit 8: Colonial Economy unit-wise mock test — real question, real answer, real explanation.

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What was the central feature of the Mahalwari System?

Revenue settlement was negotiated jointly with the village community (Mahal) or body of co-sharers ✓

Direct individual contract with the peasant cultivator (Ryot)

Permanent tax fixing with hereditary revenue farmers

Complete tax exemption for grain lands

The Mahalwari system settled revenue with the village community or Mahal (estate) as a collective unit of joint co-sharers, distinguishing it from both the landlord-based Permanent Settlement and the individual-cultivator-based Ryotwari system — the three together cover roughly the full range of British Indian revenue arrangements.

The theory of 'Drain of Wealth' from India to Great Britain was first systematically formulated by:

Dadabhai Naoroji ✓

Romesh Chunder Dutt

M.G. Ranade

Dinshaw Wacha

Dadabhai Naoroji first systematically formulated the "Drain of Wealth" theory, arguing that a substantial share of India's wealth was being extracted to Britain without adequate economic return — a foundational analytical framework for early Indian economic nationalism, later extended by R.C. Dutt.

Dadabhai Naoroji presented his Drain of Wealth paper titled English Debt to India before which organization in London in 1867?

East India Association ✓

Royal Asiatic Society

National Indian Association

British India Society

Naoroji presented his "England's Debt to India" paper before the East India Association in London in 1867, an organization he himself helped found — part of his lifelong strategy of taking India's economic grievances directly to British institutional and public audiences.

What were the 'Home Charges' paid by British India to Britain out of Indian revenues?

Dividends to EIC stockholders, interest on Indian public debt, pensions and annuities of civil/military personnel, and India Office maintenance expenses ✓

Import duties levied on Indian cotton in London

Personal allowances paid to Indian princes

Shipping freight charges exclusively

"Home Charges" bundled together several categories of payment India made to Britain — pensions, interest on debt, stores purchases, and India Office administrative costs — and were a central, concrete component of the "Drain of Wealth" nationalist critique of colonial fiscal policy.

The process of De-industrialization in 19th-century colonial India primarily affected which traditional industry?

Traditional handloom cotton textile weaving and spinning industry ✓

Coal mining industry

Plantation agriculture

Railway engineering workshops

India's traditional handloom cotton textile industry was the primary casualty of "de-industrialization" — undercut by cheap machine-made British textile imports combined with discriminatory tariff policy, a process central to the broader colonial economic critique.

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This question is part of our free Unit-Wise mock test series, drawn from the same real question bank used across every UGC NET History mock test on this site. For structured, chapter-by-chapter notes covering everything these questions test, see our UGC NET History Notes, or try the History Glossary Flashcard Quiz for daily term-by-term practice.