IBPS PRACTICE SET

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Punjab and Sind Bank

(Based on memory)

Test-I: Reasoning Ability
1. In a certain code, PLANT is written as ‘$@2★©’ and
‘YIELD’ is written as ‘β64@%’. How is ‘DELAY’ written
in that code?
1) β4★2% 2) β4@2% 3) %42@β
4) %4@2β 5) None of these
2. How many meaningful English words can be formed with
the letters ARILT using each letter only once in that
word?
1) None 2) One 3) Two
4) Three 5) More than three
3. D said, “A’s father is the only brother of my sister’s
son.” How is A’s father related to D?
1) Cousin 2) Nephew 3) Aunt
4) Data Inadequate 5) None of these
Directions (Q. 4-6): The following questions are based
on the five three-digit numbers given below :
394 632 783 576 895
4. If the positions of the first and the second digit within
each number are interchanged, then which of the
following will be the second highest number?
1) 632 2) 783 3) 576
4) 895 5) 394
5. If the first and second digits of each of the numbers are
added, the resulting sum of which of the following
numbers will not be exactly divisible by 3?
1) 895 2) 394 3) 576
4) 632 5) 783
6. If 2 is added to the last digit of each number and then the
positions of the first and the third digits are
interchanged, which of the following will be the highest
number?
1) 576 2) 895 3) 783
4) 394 5) 632
7. If ‘A’ is coded as 1, ‘B’ as 3, ‘C’ as 5 and so on, which of
the following is the numerical value of the word
‘FAZED’?
1) 81 2) 79 3) 77
4) 80 5) None of these
8. Which of the following pairs of words have the same
relationship as FAN : HEAT?
1) Water : Drink 2) Light : Night 3) Teach : Student
4) Air : Breathe 5) Food : Hunger
9. Q types faster than R but not as fast as V. T types faster
than R. S types faster than V. Who amongst the five
types the fastest?
1) V 2) T 3) S
4) Data Inadequate 5) None of these
10. If ‘B × C’ means ‘B is the daughter of C’, ‘B + C’ means ‘B
is the husband of C’ and ‘B - C’ means ‘B is the sister of
C’, then what does ‘M + N - P × Q’ mean?
1) M is the brother-in-law of Q.
2) M is the uncle of Q.
3) M is the son-in-law of Q.
4) Q is the mother-in-law of M.
5) None of these
Directions (Q. 11-15): Study the following arrangement
carefully and answer the questions given below:
R D A K 5 B I 2 M J E N 9 7 U Z V 1 W 3 H 4 F Y 8 P 6 T G
11. How many such numbers are there in the above
arrangement, each of which is immediately preceded by
a consonant and immediately followed by a vowel?
1) None 2) One 3) Two
4) Three 5) More than three
12. Which of the following is the eighth to the left of the
seventeenth from the left end?
1) M 2) J 3) 8
4) 5 5) None of these
13. Four of the following five are alike in a certain way based on
their positions in the above arrangement and so form a
group. Which is the one that does not belong to that
group?
1) E 9 J 2) Z 1 U 3) H W 4
4) Y 4 8 5) B 2 K
14. Which of the following is the sixth to the right of the
nineteenth from the right end?
1) 5 2) Z 3) V
4) 1 5) None of these
15. How many such consonants are there in the above
arrangement, each of which is immediately preceded by
a number and immediately followed by another
consonant?
1) None 2) One 3) Two 4) Three 5) More than three
Directions (Q. 16-20): Each of the questions below
consists of a question and two statements numbered I and II
given below it. You have to decide whether the data provided
in the statements are sufficient to answer the question. Read
both the statements and
Give answer 1) if the data in statement I alone are
sufficient to answer the question, while the data
in statement II alone are not sufficient to answer
the question.
Give answer 2) if the data in statement II alone are
sufficient to answer the question, while the data
in statement I alone are not sufficient to answer
the question.Give answer 3) if the data either in statement I alone or in
statement II alone are sufficient to answer the
question.
Give answer 4) if the data given in both the statements
I & II together are not sufficient to answer the
question.
Give answer 5) if the data in both the statements I & II
together are necessary to answer the question.
16. How is ‘never’ written in a code language?
I. ‘never ever go there’ is written as ‘na ja ni ho’ in that
code language.
II. ‘go there and come back’ is written as ‘ma ho sa ni
da’ in that code language.
17. Among M, P, K, J, T and W, who is lighter than only the
heaviest?
I. P is heavier than M and T.
II. W is heavier than P but lighter than J who is not the
heaviest.
18. What does ‘$’ mean in a code language?
I. ‘5 $ # 3’ means ‘flowers are really good’.
II. ‘7 # 3 5’ means ‘good flowers are available’.
19. How is P related to J?
I. M is the brother of P and T is the sister of P.
II. P’s mother is married to J’s husband who has one
son and two daughters.
20. How many students are there between Suresh and
Mohan in a row of fifty students?
I. Suresh is twelfth from the left end and Mohan is
seventeenth from the right end.
II. Suresh is six places away from Jayesh, who is
twentieth from the left end.
Directions (Q. 21-25): In each of the following questions,
a group of letters is to be coded by number/symbol codes as
per the codes given below and the conditions that follow. In
each question, a group of letters is given followed by groups
of number/symbol code numbered 1), 2), 3) and 4). The
correct combination of codes is your answer. If none of the
four combinations is correct, your answer is (5), ie ‘None of
these’.
Letter : P D A F L H M R K T B E U
Number/Symbol Code : 3 6 # 8 $ 4 2 7 @ 9 5 1 %
Conditions:
i) If the first letter is a vowel and the last letter is a
consonant, both are to be coded as ‘0’.
ii) If the first letter is a consonant and the last letter is
a vowel, both are to be coded as ‘©’.
iii) If the first as well as the last letter are vowels, both
are to be coded as the code for the first letter.
21. KEDURT
1) @16%7@ 2) 916%7@ 3) 916%79
4) @16$79 5) None of these
22. EDRTMP
1) 167923 2) 167921 3) 067920
4) 067923 5) None of these
23. FHRAMU
1) 847#28 2) %47#28 3) 847#2%
4) ©47#2© 5) None of these
24. ULTPHE
1) %$934% 2) 1$9341 3) %$9341
4) 1$934% 5) None of these
25. HKEDLB
1) 5@16$4 2) 4@16$5 3) ©@16$4
4) 0@16$5 5) None of these
Directions (Q. 26-30): Read the following passage
carefully and answer the questions given below it.
A group of seven friends, A, B, C, D, E, F and G, work as
Economist, Agriculture Officer, IT Officer, Terminal Operator,
Clerk, Forex Officer and Research Analyst, for Banks L, M, N,
P, Q, R and S, but not necessarily in the same order. C works
for Bank N and is neither a Research Analyst nor a Clerk. E is
an IT Officer and works for Bank R. A works as Forex Officer
and does not work for Bank L or Q. The one who is an
Agriculture Officer works for Bank M. The one who works
for Bank L works as a Terminal Operator. F works for Bank Q.
G works for Bank P as a Research Analyst. D is not an
Agriculture Officer.
26. Who amongst the following works as an Agriculture
Officer?
1) C 2) B 3) F
4) D 5) None of these
27. What is the profession of C?
1) Terminal Operator 2) Agriculture Officer
3) Economist 4) Cannot be determined
5) None of these
28. For which bank does B work?
1) M 2) S 3) L
4) Either M or S 5) None of these
29. What is the profession of the person who works for Bank S?
1) Clerk 2) Agriculture Officer
3) Terminal Operator 4) Forex Officer
5) None of these
30. Which of the following combinations of person,
profession and bank is correct?
1) A- Forex Officer - M 2) D - Clerk - L
3) F -Agriculture Officer - Q
4) B -Agriculture Officer - S
5) None of these
Directions (Q. 31-35): In the following questions, the
symbols @, #, %, $ and © are used with the following
meaning as illustrated below:
‘P # Q’ means ‘P is neither greater than nor equal to Q’.
‘P © Q’ means ‘P is neither equal to nor smaller than Q’.
‘P % Q’ means ‘P is neither smaller than nor greater than Q’.
‘P $ Q’ means ‘P is not smaller than Q’.
‘P @ Q’ means ‘P is not greater than Q’.
Now in each of the following questions, assuming the
given statements to be true, find which of the three
conclusions I, II and III given below them is/are definitely
true and give your answer accordingly.31. Statements: R @ D, D © W, B $ W
Conclusions:I. W # R II. B © D III. W $ R
1) None is true 2) Only I is true
3) Only III is true 4) Only either I or III is true
5) All are true
32. Statements: H $ V, V % M, K © M
Conclusions: I. K © V II. M @ H III. H © K
1) Only I and III are true 2) Only II and III are true
3) Only I and II are true 4) All are true
5) None of these
33. Statements: K # T, T $ B, B @ F
Conclusions: I. F $ T II. K # B III. T $ F
1) None is true 2) Only I is true
3) Only I and II are true 4) Only II and III are true
5) All are true
34. Statements: Z # F, R @ F, D © R
Conclusions: I. Z # R II. F # D III. D © Z
1) None is true 2) Only I is true
3) Only III is true 4) Only either I or III is true
5) All are true
35. Statements: M © R, R % D, D @ N
Conclusions: I. M © N II. N $ R III. M © D
1) Only I and II are true 2) Only II and III are true
3) Only I and III are true 4) All are true
5) None of these
Directions (Q. 36-40): Below in each question are given
two statements (A) and (B). These statements may be either
independent causes or may be effects of independent causes
or of a common cause. One of these statements may be the
effect of the other statement. Read both the statements and
decide which of the following answer choices correctly
depicts the relationship between these two statements.
Mark answer 1) if statement (A) is the cause and
statement (B) is its effect.
Mark answer 2) if statement (B) is the cause and
statement (A) is its effect.
Mark answer 3) if both the statements (A) and (B) are
independent causes.
Mark answer 4) if both the statements (A) and (B) are
effects of independent causes.
Mark answer 5) if both the statements (A) and (B) are
effects of some common cause.
36. A. State Govt has ordered immediate ban on airing of
certain movie channels on television.
B. A few social activists have come together and
demanded ban on telecasting ‘Adult’ movies on
television.
37. A. Employment scenario in the country has remarkably
improved recently.
B. The number of prospective job-seekers going
abroad has increased recently.
38. A. Government has tightened security checks at all
important places and also at various public places.
B. Incidences of terrorist attacks are increasing day
by day.
39. A. The high court has fixed a time limit for repairing all
the roads in the city.
B. Road development authorities in the city are carrying
out road repair work on an urgent basis.
40. A. There is an outbreak of several epidemics in the
country.
B. There was a worst flood situation ever experienced
in the past in most parts of the country.
Directions (Q. 41-50): Study the following information
carefully and answer the questions which follow:
A Research Institute is recruiting a librarian to digitise
its information resources among other duties. Candidates
must possess the following criteria. The candidate must
(I) be not less than 35 years and not exceed 40 years as
on 01.11.2009.
(II) have a Bachelor’s Degree in Library and Information
Science with 65 per cent marks.
(III) have a PhD in Library Science.
(IV) have post qualification experience of at least 4 years
in a University Library.
However, if the candidate fulfils the above mentioned
criteria except
(A) (II), but has a UGC NET certification with all the
other above criteria fulfilled, he/she may be referred
to the Dean.
(B) (IV), but all the eligibility criteria are met and the
candidate has at least one year’s experience in a
research institute, he/she may be offered contractual
appointment for a year.
Based on the above criteria, study carefully whether the
following candidates are eligible for the recruitment
process and mark your answer as follows. You are not to
assume anything other than the information provided in
each question. All cases are given to you as on 1.11.2009.
Mark answer 1) if he/she is to be shortlisted.
Mark answer 2) if he/she is not to be shortlisted.
Mark answer 3) if he/she should be referred to the Dean.
Mark answer 4) if he/she may be offered contractual
appointment, if required.
Mark answer 5) if the data provided is inadequate to
take a decision.
41. Anil Rath has a doctorate in Library Science from
Karnataka University in 2003. Born on July 21, 1969, he
graduated in Library and Information Science from
Karnataka University, where he was Assistant Librarian
for four years since 2005.
42. Dr Samir Bali has a PhD in Library Science and has been with
the Institute of Fundamental Research as Assistant
Librarian since October 2008. He graduated with a degree
in Library and Information Science in 1994 at the age of 22.
He obtained 70 per cent in his graduation.43. Vaishali Shetty has been a librarian at STS University
since 2007 when she qualified in the UGC NET
examination. She has a degree in Library and Information
Science with 60 per cent. Her first job was as junior
librarian at TRP Institute of Development Research from
October 2000 to December 2001.
44. Vivek Jha has a PhD in Library and Information Science.
He graduated in Library and Information Science in 1992
with 65 per cent. He was born on 1.10.1974. Since July
2005, he has been working as Deputy Librarian at a
deemed University.
45. A graduate in Library Science with 69 per cent, Dr M Puri has
been working at Ranchi University for 4 years as Deputy
Librarian. She earned her doctorate while working for the
Labour Research Institute for 5 years as Assistant Librarian.
She is 38 years old as on the required date.
46. Megha Vaidya has a graduate degree in Library Science
from Punjab University where she has been a librarian for
the past 5 years. In 2002 she obtained UGC NET
qualification at the age of 29. She obtained 72 percent in
graduation.
47. Anup Gupta is obtaining his PhD from YCM University,
where he has been Junior Librarian since 2004. He qualified
in the UGC NET exam in June 2000. He has a degree in
Library and Information Science with 62 per cent. His date
of birth is 17. 10. 1973.
48. Kirti Shukla obtained her doctorate and Bachelor’s degree
from Patna University. She obtained 63 per cent at
graduation. She obtained her UGC NET qualification in
1998 when she was 26.
49. Prakash Sinha has been a librarian for a government
institution for three years. Prior to this, he was a University
Librarian for 7 years after completing his PhD in Library
Science. He graduated in 1991 with 68 per cent in Library
Science. He is exactly 40 years of age on the specified date.
50. Rohan Sachdev obtained his UGC NET qualification after
his graduation in 1998 when he began working. He has been
Assistant Librarian for the past two years with a research
institute. He obtained 65 per cent in his graduation in
Library Science. He earned his PhD in Library Science in
2007. His date of birth is 22.10.1974.
Directions (Q. 51-55): Study the following information
carefully and answer the questions given below :
Eight persons, A, B, C, D, E, F, G and H, are sitting around
a rectangular table in such a way that two persons sit on
each of the four sides of the table facing the centre. Persons
sitting on opposite sides are exactly opposite to each other.
D faces North and sits exactly opposite H. E is on the
immediate left of H. A and G sit on the same side. G is exactly
opposite B, who is on the immediate right of C. A is next to
the left of D.
51. Who is sitting opposite A?
1) G 2) D 3) E
4) A 5) None of these
52. Who is next to E in clockwise direction?
1) G 2) B 3) F
4) A or F 5) None of these
53. Which of the following pairs of persons has both the
persons sitting on the same side with first person sitting
to the right of second person?
1) DF 2) CB 3) FC
4) AG 5) None of these
54. Who is sitting opposite E?
1) D 2) A 3) F
4) A or D 5) None of these
55. Which of the following statements is definitely true?
1) A is facing North. 2) E is sitting opposite F.
3) F is to the left of G. 4) C is to the left of A.
5) None of these
Directions (Q. 56-60): Below is given a passage followed
by several possible inferences which can be drawn from the
facts stated in the passage. You have to examine each inference
separately in the context of the passage and decide upon its
degree of truth or falsity.
Mark answer 1) if the inference is ‘definitely true’, ie it properly
follows from the statement of facts given.
Mark answer 2) if the inference is ‘probably true’ though
not ‘definitely true’ in the light of the facts given.
Mark answer 3) if the ‘data are inadequate’, ie from the
facts given you cannot say whether the
inference is likely to be true or false.
Mark answer 4) if the inference is ‘probably false’ though
not ‘definitely false’ in the light of the facts given.
Mark answer 5) if the inference is ‘definitely false’, ie it
cannot possibly be drawn from the facts given
or it contradicts the given facts.
Aviation is important, both as an industry in its own
right and as a facilitator for the success and competitiveness
of other industries. The success of the aviation industry is
also integral to national competitiveness, economic
development and social progress. More importantly, aviation
supports those new economic sectors on which India’s future
prosperity relies, like Information Technology, Biotechnology,
Finance and Electronics. That India’s air transport industry
is on the rise is an undisputable fact. However, the Indian
economy will only achieve its true potential if we are able to
compete in the industries of the future. We need to be strong
in the areas with potential to grow and the role of India’s
aviation sector is critical in this regard.
56. India needs to make massive investments in
infrastructural development.
57. Growth in India’s aviation sector is important to its
economic development.
58. India has made substantial development in the
Biotechnology sector.
59. India has tremendous potential to grow in the emerging
industries.
60. Aviation sector in India has not fulfilled its role in the
past in its economic development.Directions (Q. 61-75): In each of the questions given below, which one of the five answer figures on the right should come
after the problem figures on the left, if the sequence were continued?
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.71.
72.
73.
74.
75.
Test-II: Quantitative Aptitude
Directions (Q. 76-85): What should come in place of
question mark (?) in the following questions?
76. ?
18 7.5 5 4
9 2 27 9
=
÷ × ÷
÷ × ÷
1) 4.5 2) 5.7 3) 2.5
4) 6.8 5) None of these
77. ?% of 280 + 18% of 550 = 143.8
1) 11 2) 18 3) 21
4) 16 5) None of these
78. 8.88 × 88.8 × 88 = ?
1) 68301.142 2) 79391.642 3) 65365.824
4) 76218.414 5) None of these
79. 2
2500 + 961 = (?)
1) 81 2) 3 3) 6561
4) 9 5) None of these
80. ?
3
1
1
5
3
1
7
4
1 + + =
1) 105
47 5 2) 105
58 4 3) 105
53 4
4) 105
43 5 5) None of these
81. 15 : 66 : : 185 : ?
1) 824 2) 644 3) 604
4) 814 5) None of these
82. 6412 ÷ 415 = 64?
1) 9 2) 3 3) 12
4) 7 5) None of these
83. 14% of 80 + ?% of 90 = 31.9
1) 16 2) 23 3) 18
4) 26 5) None of these
84. 97344 = ?
1) 302 2) 322 3) 292
4) 342 5) None of these
85. ?
3
1
5
4
1
6
7
6
3 − + =
1) 84
65 1 2) 84
1
8 3) 84
79 2
4) 84
47 5 5) None of theseDirections (Q. 86-90): What should come in place of
question mark (?) in the following number series?
86. 15 18 16 19 17 20 ?
1) 23 2) 22 3) 16
4) 18 5) None of these
87. 1050 420 168 67.2 26.88 10.752 ?
1) 4.3008 2) 6.5038 3) 4.4015
4) 5.6002 5) None of these
88. 0 6 24 60 120 210 ?
1) 343 2) 280 3) 335
4) 295 5) None of these
89. 32 49 83 151 287 559 ?
1) 1118 2) 979 3) 1103
4) 1120 5) None of these
90. 462 552 650 756 870 992 ?
1) 1040 2) 1122 3) 1132
4) 1050 5) None of these
Directions (Q. 91-95): What approximate value should
come in place of question mark(?) in the following question?
(Note: You are not expected to calculate the exact value.)
91. 5554.999 ÷ 50.007 = ?
1) 110 2) 150 3) 200
4) 50 5) 125
92. (18.001)3
 = ?
1) 5830 2) 5500 3) 6000
4) 6480 5) 5240
93. 23.001 × 18.999 × 7.998 = ?
1) 4200 2) 3000 3) 3500
4) 4000 5) 2500
94. 9999 ÷ 99 ÷ 9 = ?
1) 18 2) 15 3) 6
4) 11 5) 20
95. 22.005% of 449.999 = ?
1) 85 2) 100 3) 125
4) 75 5) 150
96. A sum of `731 is divided among A, B and C such that A
receives 25% more than B and B receives 25% less than
C. What is C’s share in the amount?
1) `172 2) `200 3) `262
4) `258 5) None of these
97. In how many different ways can the letters of the word
‘PRAISE’ be arranged?
1) 720 2) 610 3) 360
4) 210 5) None of these
98. If the numerator of a fraction is increased by 150% and
the denominator of the fraction is increased by 300%,
the resultant fraction is 18
5
. What is the original fraction?
1) 9
4
2) 5
4
3) 9
8
4) 
11
8
5) None of these
99. A car covers the first 39 km of its journey in 45 minutes
and the remaining 25 km in 35 minutes. What is the
average speed of the car?
1) 40 km/hr 2) 64 km/hr 3) 49 km/hr
4) 48 km/hr 5) None of these
100. Four examiners can examine a certain number of answer
papers in 10 days by working for 5 hours a day. For how
many hours in a day would 2 examiners have to work in
order to examine twice the number of answer papers in
20 days?
1) 8 hours 2) 2
1
7 hours 3) 10 hours
4) 2
1
8 hours 5) None of these
Directions (Q. 101-105): In each of these questions,
two equations are given. You have to solve these equations
and find out the values of x and y and
Give answer If
1) x < y
2) x > y
3) x ≤ y
4) x ≥ y
5) x = y
101.I. 16x2
 + 20x + 6 = 0
II. 10y2
 + 38y + 24 = 0
102.I. 18x2
 + 18x + 4 = 0
II. 12y2
 + 29y + 14 = 0
103.I. 8x2
 + 6x = 5
II. 12y2
 - 22y + 8 = 0
104.I. 17x2
 + 48x = 9
II. 13y2
 = 32y - 21
105.I. 4x + 7y = 209
II. 12x - 14y = -38
Directions (Q. 106-110): Study the pie-chart carefully
to answer the following questions.
Percentage of students enrolled in different activities
in a school Total number of students = 3000
Dancing
24% Drawing
14%
Singing
21%
Craft
25%
Swimming
16%Percentage break-up of girls enrolled in these activities
out of the total students Total number of girls = 1750
Dancing
20%
Drawing
16%
Craft
22%
Singing
28%
Swimming
14%
106.What is the approximate percentage of boys in the
school?
1) 34 2) 56 3) 28 4) 50 5) 42
107.How many boys are enrolled in Singing and Craft
together?
1) 505 2) 610 3) 485
4) 420 5) None of these
108.What is the total number of girls enrolled in Swimming
and Drawing together?
1) 480 2) 525 3) 505
4) 495 5) None of these
109.The number of girls enrolled in Dancing form what per
cent of the total number of students in the school? (round
off to two digits after decimal)
1) 12.35 2) 14.12 3) 11.67
4) 10.08 5) None of these
110.What is the ratio of the number of girls enrolled in
Swimming to the number of boys enrolled in Swimming?
1) 47 : 49 2) 23 : 29 3) 29 : 23
4) 49 : 47 5) None of these
Directions (Q. 111-115): Study the following graph
carefully and answer the questions given below it.
Total number of students appeared and qualified from
various schools at a scholarship exam
        
      
                 
       
        
     
   
      
     
     
0
500
1000
1500
2000
2500
3000
3500
ABCDE
Schools
Number of students
  Appeared
  Qualified
111.The average number of students qualified in the
examination from Schools C and D is what per cent of
the average number of students appeared for the
examination from the same schools? (rounded off to two
digits after decimal)
1) 58.62 2) 73.91 3) 62.58
4) 58.96 5) None of these
112.What is the ratio of the number of students appeared to
the number of students qualified at the scholarship exam
from School C?
1) 7 : 12 2) 6 : 5 3) 9 : 13
4) 9 : 10 5) None of these
113.What is the ratio of the number of students qualified in
the scholarship examination from School A and the
number of students qualified in the examination from
school B?
1) 8 : 3 2) 5 : 7 3) 7 : 3
4) 9 : 5 5) None of these
114.The number of students appeared for the scholarship
exam from School D is approximately what per cent of
the total number of students appeared for the exam from
all the schools together?
1) 12 2) 24 3) 29
4) 18 5) 8
115.What is the difference between the average number of
students appeared in the scholarship exam from all the
given schools and the average number of students
qualified from all the schools together?
1) 950 2) 1100 3) 990
4) 1020 5) None of these
116.The difference between the amount of compound
interest and simple interest accrued on an amount of
`26,000 at the end of 3 years is `2994.134. What is the
rate of interest pcpa?
1) 22 2) 17 3) 19
4) Cannot be determined 5) None of these
117. On a shelf there are 4 books on Economics, 3 books on
Management and 4 books on Statistics. In how many
different ways can the books be arranged so that the
books on Economics are kept together?
1) 967680 2) 20960 3) 5040
4) 40320 5) None of these
118. 6 women and 6 men together can complete a piece of
work in 6 days. In how many days can 15 men alone
complete the same work if 9 women alone can complete
it in 10 days?
1) 6 2) 5 3) 7.2
4) Cannot be determined 5) None of these
119.Ravi borrowed some money at the rate of 4 pcpa for the
first three years, at the rate of 8 pcpa for the next two
years and at the rate of 9 pcpa for the period beyond 5
years. If he pays a total simple interest of `19,550 at the
end of 7 years, how much money did he borrow?
1) `39,500 2) `42,500 3) `41,900
4) `43,000 5) None of these

CHAPTER I INDIAN ECONOMY AT THE TIME OF INDEPENDENCE

Indian ecconomy at the time of british rule

At the time of Independence, Indian economy was under-developed, there was low per-capita income, poor infrastructure, illiteracy, it was mainly dependent on agriculture and there was no industrial development, it was dependent on imports. Apart from these Indian economy was semi feudal, depreciated, stagnant. India suffered from capital deficiency, high population growth, famines, unemployment, economic disparities and lots more. ndia was one of the richest and the most flourishing nations of the world and this is evident from the past history of the nation. India attracted many invaders in the past with its wealth. However, after British Invasion, India suffered a massive economic downfall and it continued even after India's Independence. Nevertheless, Indian economy is now gaining momentum and is developing quite fast.

Low level of economic develoment

 under the colonical rule india had an independent economy before the advent of the british rule. Though agriculture was the main source of livelihood for most people, the country’s economy was characterized by various kinds of manufacturing activities. India was particularly well known for its handicraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. These products enjoyed a worldwide market based on the reputattion of the fine quality of material used and the high standards of craftsmanship seen in all imports from india.

The economic policies pursued by the colonical government in india were concerned more with the protection and promotion of the economic interests of their home country than with the development of the indian economy. Most studies did find that the countre’s growth of aggregate real output during the first half of the twentieth century was less than two per coupled with a meager half per cent growth per capita output per year.

AGRICULTURAL SECTOR

India’s economy the British colonical rule remained fundamenally agrarian- about 85 per cent of the country’s population lived mostly in villages and derived livelihood directly or indirectly from agriculture. However, despite being the occupation of such a large population, the agricultural sector continued to experience stagnation and, not infrequently, unusul deterioration. Agricultural productivity became incrementally low though, in absolute terms, the sector shows expansion some growth due to the expansion of the aggregate area under cultivation.

This stagnation in the agricultural sector was caused mainly because of the various systems of land settlement that were introduced by the colonical government.that is the introduction of middle man to farm field. Neither the goverment nor the zamindars did nothing for the improvement of farm field. The other reason for the back ward condition of agriculture duing this period was low level of technology,negligible use of chemical fertilizers and pesticieds and low irrigational fecilities agrravated the problem.

The  commercialisation of agriculture also act as a reason for the back ward condition of the sector, commercialisation of agriculture refers shifting of production from food grains to cash crops or the agriculture produce is for market not for consumption. There was some evidence of a relatively higher yield of cash crops in certain areas of the country due to commercialization of agriclture.

INDUSTRIAL  SECTOR

As in the case of agriculture, so also in manufacturing, india could not develop a sound industrial base under the colonical rule. Even as the country’s world famous handicraft industies declined, no corresponding modern industrial base was allowed to come up to take pride of place so long enjoyed by second by the former.the british did not take a sufficient step for industrilisation of the country rather than deindustrilise the nation. There are two motives behind this  one is to convert india as achief supplier of raw material for british factories and a market for selling british finshed goods.

During the second half of the nineteenth century, modern industry began to take root in india but its progress remained very slow. Initially, this development was confined to the setting up of cotton and jute textile mills. The large scale industy did notset up the colinoel rule, the only large scale industry was sep in 1907 (TISCo)  The growth rate new industrial sectoor and its contribution to the Gross Domestic Product (GDP) remained very small.the public investment in industries will reamin very low in this period

FOREIGN TRADE

India has been an important trading nation since ancient times. But the restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of india’s foreign trade.

Consequently, india become an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, juste ect. And an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods llike light machinery produced in the factorice of Britain.  Britain maintained a moopoly control over india’s exports and imports.

The most important characteristic of india’s foreign trade throughout the colonial period was the generation of a large export surplus,this surpuls was used for meeting was expences.

DEMOGRAPHIC CONDITION

Various details about the population of British india were first collected through a census in 1881. Though suffering from certain limitations, it revealed the unevenness in india’s population growth. Subsequently, every ten years such census operations were carried out. Before 1921, India was in the first stage of demographic transition. The second stage of ttransition began after 1921. However , neither  the total population of india nor the rate of population growth at this stage was very high.

The  socio domographic indicaters moves in backward direction during british rule, the literacy rate was less than16% amog hiese the female literacy was about 7% only.the public health fecilities are not availiable if availiable  the fecilities are adequate.therefore water bone and air bone deasise are frequient in india. The mortalitity rate is very alarming especially in fant mortality rate is very high in worl is about 218per thousand. The life expectancy at that time was 32 years

OCCUPATIONAL STRUCTURE

During the colonial period, the occupational structure of india, i.e., distribution of working persons across different industries and sectors, showed little sign of change. The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70- 75 per cent which the manufacturing and the services sectors accounted for only 10 and 15-20 per cent resectively.

INFRASTRUCTURE

Under the colonial regime, basic infrastructure such as railways, ports, water transpport, posts and telegraphs did railways, ports, water transport, posts and telegraphs did develop. However, the real motive bahind this development was not to provide basic amenities to the people but to sub serve verious colonial interests. Roads constructed in india prior to the advent of the british rule were not fit for modern transport.

The British introduced the railways in 1850 and it is considered as one of their moste important contributions.   

Question and answers

  Question 1:    What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these

policies?

The main focus of the economic policies pursued by the colonial government was to make India a mere supplier of Britain’s own  flourishing industrial base. The policies were concerned mainly with the fortification and advancement for their home country. The interests of the Indian economy were completely ignored. Such policies brought structural changes in the Indian economy by transforming it to a supplier of raw materials and consumer of finished products from Britain. The impacts of these policies are discussed as follows in detail;

i. Low Economic Development

Throughout the British rule, Indian economy experienced very low level of economic development. As per some researches,  Indian economy grew at even less than two percent during 1900-50. The reason for such a low level of development was that the  British government was more concerned with the promotion of economic interests of their home country. Consequently, the  colonial rule transformed India’s agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton  industries. These manufacturing units faced a stiff competition from the British machine made textiles and handlooms.

ii. Backwardness of Indian Agriculture

Under the colonial rule, India was basically an agrarian economy employing nearly 85% of its population. Nevertheless, the  growth of the agriculture sector was meager. This was due to the prevalence of various systems of Land Settlement,  particularly Zamindari system. Under this system, the zamindars (owners of land) were required to pay very high revenue  (lagaan) to the British government, which they used to collect from the peasants (landless labourers, who were actually  cultivating). The zamindars were mainly concerned with extracting high revenues from the peasants but never took any steps to  improve the productivity of the land. Moreover, in order to feed British industries with cheap raw materials, the Indian peasants  were forced to grow cash crops (such as, indigo, cotton, etc.) instead of food crops (such as, rice and wheat). This  commercialisation of agriculture not only increased the burden of high revenues on the poor peasants but also led India to face  shortage of food grains. Therefore, Indian agriculture remained backward and primitive.

iii. Deindustrialisation of Indian Economy

India failed to develop a sound and strong industrial base during the colonial rule. The status of industrial sector during the  British rule can be well defined by the term ‘systematic deindustrialisation’. The cause of deindustrialisation can be attributed to  the downfall of India’s handicraft industry and the cause of bleak growth of modern industry was the lack of investment. On one  hand, the British government imposed heavy tariffs on the export of Indian handicraft products and on the other hand, allowed  free exports of Indian raw materials to Britain and free imports of British products to India. As a result of the heavy tariffs, the  Indian exports became costlier and its demand in the international market fell drastically that led to the collapse of Indian  handicrafts industries. Simultaneously, the demand for the handicrafts products also fell in the domestic markets due to stiff  competition from the machine made textiles of Britain. As a result, the domestic industries lacked investment and growth  initiatives.

iv. Regression in Foreign Trade

During the colonial rule, the British government owned the monopoly power over India’s foreign trade. The British government  used the trade policy according to the interests of their home country. The exports and imports transactions were restricted only  to India and Britain. On one hand, the exports from India provided the cheap raw materials to the British industries and on the  other hand, India's imports from Britain provided a virgin market for Britain’s products. In either ways, British industries were  benefitted. Moreover, the surplus generated from t foreign trade was not invested in the Indian economy; instead it was used in  administrative and war purposes by Britain to spread their colonial power.

  Question 2:     Name some notable economists who estimated India’s per capita income during the colonial period.

As the British government was never interested in upliftment of our country, so they never took any initiative to measure India’s  national and per capita income. Though some of the economists tried to estimate India’s national income and per capita income during the colonial rule, but the results are mixed and conflicting. The following are some of the notable economists who were  engaged in estimation of national income and per capita income:

i. Dadabhai Naroji   ii. William Digbay    iii. Findlay Shirras    iv. V.K.R.V Rao     v. R.C. Desai

Out of these, V.K.R.V Rao's estimates are considered to be significant. Most of these studies revealed that Indian economy grew  at even less than two percent during 1900-50 with half per cent growth in per capita output per year.

  Question 3:what were the main causes of India’s agricultural stagnation during the colonial period?

Under the colonial rule, India was basically an agrarian economy, employing nearly 85% of its population. Nevertheless, the  growth of the agriculture sector was meager. The following are the causes explaining stagnancy in Indian agriculture sector  during the colonial rule:

1. Introduction of Land Revenue System

This was due to prevalence of various systems of Land Settlement, particularly Zamindari system. This system was introduced by  Lord Cornwallis in Bengal in 1793. Under this system, the zamindars(owners of land) were required to pay very high revenue  (lagaan) to the British government, which they used to collect from the peasants (landless labourers, who were actually  cultivating). The zamindars were mainly concerned with extracting high revenues from the peasants but never took any steps to  improve the productivity of the land. This resulted in low agricultural productivity and worsened the peasants economically.

2. Forceful Commercialisation

Initially before the British rule, the farmers were practicing conventional subsistence farming. They used to grow crops like rice  and wheat for their own consumption. But afterwards, in order to feed British industries with cheap raw materials, the Indian farmers were forced to grow commercial crops (like indigo required by British industries to dye textiles) instead of food crops  (like rice and wheat). This led to the commercialisation of Indian agriculture. This commercialisation of Indian agriculture not  only increased the burden of high revenues on the poor farmers but also led India to face shortage of food grains, resources,  technology and investment. Therefore, Indian agriculture remained backward and primitive.

3. Lack of Irrigation Facilities and Resources

Besides the above factors, Indian agricultural sector also faced lack of irrigation facilities, insignificant use of fertilisers, lack of  investment, frequent famines and other natural calamities, etc. that further exaggerated the agricultural performance and made it  more vulnerable.

Question 4:

Name some modern industries which were in operation in our country at the time of independence. The second half of the nineteenth century witnessed the emergence of modern industries. At the initial stage, development was  confined to setting up of cotton and jute textile mills. The western parts of the country Maharashtra and Gujarat was the hub for  cotton textile mills which were mainly dominated by the Indians whereas the jute industries were mainly concentrated in Bengal  and were dominated by the British. In the beginning of the 20thcentury, Iron and steel industries also started emerging gradually. It was incorporated in 1907. Some other industries that were operating at a smaller scale during the British era were sugar  industry, cement industry and paper industry.

Question 5    What was the two-fold motive behind the systematic deindustrialisation affected by the British in pre - independent India?

The following are the two-fold motives behind the systematic deindustrialisation affected by the British:

1. Making India a Supplier of Raw Materials: The main motive of the British government was to make India a mere supplier of  cheap raw materials to feed its own flourishing industrial base.

2. Making India a Market for Finished Goods: Another important objective of the British government was to use India as a virgin  market to sell the finished goods produced by the British industries.

Question 6    The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of .

Yes, we do agree with the above statement that the traditional handicrafts industries were ruined under the British times. The following are the reasons in favour of the statement.

1. Discriminatory Tariff Policy: The British rule in India corresponded with its industrialisation. The British rule used India both  as a source of cheap raw materials as well as easy accessible market for their finished products. Thereby, they imposed heavy tariffs (export duties) on India’s export of handicraft products, while allowed free export of India’s raw material to Britain and  free import of British products into India. This made Indian exports costlier and its international demand fell drastically leading  to the collapse of handicrafts industries.

2. Competition from Machine made Britain Goods: The demand for the handicrafts products experienced a downward trend in  the domestic markets as well. This was due to stiff competition from the machine made textiles from Britain. This was because of  the reason that the goods produced mechanically in Britain were comparatively cheaper and of superior quality than the Indian handicraft goods. This narrowed the market for Indian industries.

3. Emergence of New Class: The British rule in India popularised western lifestyle in India. There was an emergence of a new  section of population (consisting mainly of zamindars) in India who liked the British goods. This section used to spend lavishly  on the British products that provided impetus for the development of British industries at the cost of the domestic industries.  Hence, gradually Indian industries perished away.4 www.cbse.entrancei.com

4. Disappearance of Princely State: Prior to the advent of British, India was ruled by princely states. They used to patronise handicrafts industries and consequently, Indian handicrafts gained reputation in the international markets. But during the British  rule, these princely states were ruined thereby ruining the protection of these handicrafts industries. Thus, gradually Indian  handicrafts lost its reputation and its importance deteriorated.

Question 7:

What objectives did the British intend to achieve through their policies of infrastructure development in India?

One cannot deny the fact that under the British rule, there was significant change in the infrastructural development in the  country. But the bonafide motive of the British behind the infrastructure development was only to serve their own colonial  interests. There was infrastructural development in the fields of transport and communication. The roads served the purpose of  facilitating transportation of raw materials from different parts of the country to ports, and ports were developed for easy and fast  exports to and imports from Britain. Similarly, railways were introduced and developed for the transportation of finished goods  of British industries to the interiors of India. Railways assisted British industries to widen the market for their finished products.  Post and telegraphs were developed to enhance the efficiency and effectiveness of the British administration. Hence, the aim of  infrastructural development was not the growth and development of the Indian economy but to serve their own interest.

Question 8:

Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration. The focus of the industrial policies pursued by the colonial government in India was to make our country a mere supplier of  Britain’s own flourishing industrial base. The policies were concerned mainly with the fortification and advancement for their  own country. The industrial policy pursued by the British colonial administration has the following shortfalls:

1. Neglect of Indian Handicraft Industries: The British followed a discriminatory tariff policy under which they imposed heavy  tariffs (export duties) on India’s export of handicraft products while allowed free export of India’s raw material to Britain and  free import of British products to India. This made Indian exports costlier and its international demand fell drastically leading to  the collapse of handicrafts industries. Also, Indian handicrafts faced a stiff competition from machine made textiles of Britain.  The emergence of a new section of people who liked the British goods more in comparison to the domestic goods encouraged  British industries at the cost of Indian industries. This led to the declining demand for Indian products and encouraged foreign  products.

2. Lack of Investment in Indian Industries: The modern industries in India demanded investments in capital goods that were  beyond the means of Indian investors. On the other hand, British government was least interested in investing in Indian  industries. Thus, due to the lack of sufficient investment, the growth of Indian industries was acutely constrained.

Question 9:

What do you understand by the drain of Indian wealth during the colonial period?

Dadabhai Naroji advocated the theory of ‘Drain of Wealth’ in the 19th century. The colonial period was marked by the  exploitation of Indian resources. The sole motive of Britain to conquer India was to own a perennial source of cheap raw  materials to feed its own industrial base in Britain. Further, British government used India’s manpower to spread its colonial  base outside India. Also, the administrative expenses that were incurred by the British government to manage the colonial rule  in India were borne by Indian Exchequer. Thus, the British rule drained out Indian wealth for the fulfillment of its own interests.

Question 10:

Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?

The year 1921 is regarded as the defining year or the ‘Year of Great Divide’ because prior to 1921, population growth in India  was never consistent. India was in the first phase of demographic transition till 1921 that was characterised by high birth rate  and high death rate. It implies low survival rate (or low life expectancy), which was nearly 8 per thousand per annum.  Therefore, the period before 1921 witnessed stagnant population growth rate. After 1921, India’s population growth never  declined and showed a consistent upward trend.

Question 11:

Give a quantitative appraisal of India’s demographic profile during the colonial period.

India’s Demographic conditions during the British rule depict our economy as stagnant and backward. Both the birth rate and  death rate were as high as 48 and 40 per thousand. Due to high birth rate and high death rate the population growth was  stagnant. The Infant Mortality Rate was also very high of about 218 per thousand. The Life Expectancy Rate was as low as 32  years while presently it is 63.5 years. The literacy rate was less than 16 percent which denotes social backwardness and gender  bias in the economy. We can infer from the above figures that India was featured with massive poverty, low standard and  quality of living and low survival rate in the country. The lack of health care facilities and lack of health awareness were the  main causes behind such demographic conditions of India.

Question 12:

Highlight the salient features of India’s pre-independence occupational structure.

The occupational structure that refers to the distribution of population engaged in different occupations, showed no variation  throughout the British rule. The following are the salient features of India’s pre-independence occupational structure:

1. Agriculture- The Prime Occupation: Under the colonial rule, India was basically an agrarian economy, employing nearly 85%  of its population. As India had a massive poverty during the colonial rule, so a large proportion of the population was engaged in  agricultural sector to earn their subsistence. But due to the prevalence of Zamindari system, agricultural sector lacked investment  and, thereby, its growth was highly constrained. Thus, in other words, despite employing a significant proportion of the  population, the growth of agriculture sector was meager.

2. Industry- The Bleak Occupation: Apart from agriculture, a small proportion of population was employed in manufacturing  sector. Nearly 10% of the total workforce was engaged in manufacturing and industrial sector. This was due to the stiff  competition that the Indian industries faced from the machine made cheap goods from Britain. Further, the lack of investment, initiatives and the unfavourable tariff structure constrained industrial sector. Thus, the Indian industrial sector failed to contribute  significantly to India’s GDP.

3. Unbalanced Growth: The three sectors of Indian economy, i.e. agricultural, industrial and tertiary sector were unequally  developed. While the agricultural sector was relatively developed, whereas, the other two sectors were at their infant stage. In  addition, there was regional variation in the occupational structure of India. While on the one hand, states like Tamil Nadu, Andhra Pradesh and Bombay experienced a fall in the agricultural work force on the other hand states like Orissa, Rajasthan and  Punjab experienced a rise in the agricultural workforce.

Question 13:

Underscore some of the India’s most crucial economic challenges at the time of independence.

The exploitative colonial rule of the British hampered almost every spheres of Indian economy badly. As an end-result, India faced acute economic challenges at the time of independence. The following are some of the economic challenges faced by the Indian economy:

1. Low Level of Agricultural Productivity: During the colonial rule Indian agricultural sector was used by the British to suit to their own interest. Consequently, Indian agricultural sector experienced stagnancy, low level of productivity, lack of investment, poor condition of landless farmers and peasants. Thus, the immediate concern for India was to develop its agricultural sector and its productivity. Some of the immediate reforms needed at the time of independence were abolition of Zamindari system, need of land reforms, reducing inequality of land ownership and upliftment of the peasants.

2. Infant Industrial Sector: India failed to develop a sound industrial base during the colonial rule. In order to develop the industrial sector, India needed huge capital, investments, infrastructure, human skills, technical knowhow and modern technology. Further, due to stiff competition from the British industries, India’s domestic industries failed to sustain. Thus,  developing small scale and large scale industries simultaneously was the main concern for India to develop its industrial sector. Moreover, the need to increase the share of industrial sector to India’s GDP was one of the important economic challenges for  India.

3. Lack in Infrastructure: Although there was a significant change in the infrastructural development in the country but this was  not sufficient to improve the performance of agricultural and industrial sector. Also, there was a need to upgrade the existing  infrastructure and to modernise the infrastructure to enhance its efficiency and effectiveness.

4. Poverty and Inequalities: India was trapped in the vicious circle of poverty and inequality. The colonial rule drained out a  significant portion of India's wealth to Britain. Consequently, majority of India’s population was poverty trodden. This further  exaggerated economic inequalities across the country.

Question 14:

When was India’s first official census operation undertaken?

India’s first official census operation was undertaken in the year 1881. After that the census has been conducted after every 10  years. It involves a detailed estimation of population size, along with a complete demographic profile of the country.

Question 15:

Indicate the volume and direction of trade at the time of independence.

During the colonial rule, the British followed a discriminatory tariff policy under which they imposed heavy tariffs (export  duties) on India’s export of handicraft products, while allowing free export of India’s raw material to Britain and free import of  British products to India. This made Indian exports costlier and its international demand fell drastically. India’s export basket  during the colonial rule comprised mainly of primary products like sugar, jute, silk, etc. and the imports comprised of finished  consumer goods like cotton, woolen clothes, etc, from Britain. As the monopoly power of India’s export and import rested with  Britain, so, more than half of India’s trade was restricted to Britain and the remaining imports were directed towards China, Persia, and Srilanka. The opening up of Suez Canal further intensified the monopoly power of the British over India’s foreign  trade. It led to the fast movement of goods from India to Britain and vice-versa. The surplus generated from India’s foreign  trade was not invested in Indian economy; rather it was used for administrative and war purposes. This led to the drain of  Indian wealth to Britain.

Question 16:

Were there any positive contributions made by the British in India? Discuss.

Yes, there were various positive contributions that were made by the British in India. The contributions were not intentional but  purely the effects of colonial exploitation of the British. The following are the positive contributions made by the British:

1. Introduction of Railways: The introduction of railways by the British was a breakthrough in the development process of Indian economy. It opened up the cultural and geographical barriers and facilitated commercialisation of Indian agriculture.

2. Introduction of Commercialisation of Agriculture: The introduction of commercial agriculture is an important breakthrough  in the history of Indian agriculture. Prior to the advent of the British, Indian agriculture was of subsistence nature. But with the  commercialisation of agriculture, the agricultural production was carried out as per the market requirements. It was due to this  factor that today India can aim at attaining self-sufficiency in food grains production.

3. Introduced Free Trade to India: British forced India to follow free trade pattern during the colonial rule. This is the key  concept of globalisation today. The free trade provided domestic industry with a platform to compete with the Britain industries.  The introduction of free trade led to an increase in the volume of India’s export rapidly.

4. Development of Infrastructure: The infrastructure developed in India by the British proved as useful tool to check the spread  of famines. The telegram and postal services served Indian public.

5. Promoted Western Culture: English as a language promoted westernised form of education. The English language acted as a  window to the outside world. This has integrated India with the rest of the world.

6. Role Model: The way and the technique of British administration acts as a role model for the Indian politicians and planners. It  helped Indian politicians to govern the country in an efficient and effective manner.