Q. Which among the following was / were the reason / reasons of a gradual increase in rural indebtness in India under the British Rule:

1. Fragmentation of land holdings
2. Lack of irrigational facilities
3. Decline of cottage industries
4. Introduction of Cash crops

Choose the correct option:
Answer: 1, 2 & 3
Notes: The correct answer is 3 (Decline of cottage industries). Under British rule, rural indebtedness in India increased due to several factors. The decline of cottage industries, which were vital for rural economies, forced many artisans and laborers into debt as they lost their livelihoods. Additionally, the introduction of cash crops often led to farmers prioritizing these over food crops, increasing vulnerability to market fluctuations. Fragmentation of land holdings and lack of irrigation also contributed to agricultural distress, but the decline of cottage industries was a important direct cause of increased rural debt. Trivia: By the late 19th century, the British policies had severely undermined traditional crafts, leading to widespread poverty in rural areas.