Statement I : Indigo formed the basis of a flourishing sector of commercial agriculture by the beginning of the 19th century. Statement II: The Indigo Commission was set- up to enquire into the grievances of the indigo cultivators in 1860.

Statement I is true as indigo manufacture was introduced in India at the end of the 18th century and flourished in Bengal and Bihar by the beginning of the 19th century. By this time, Bengal had emerged as the predominant global supplier of indigo, forming a significant sector of commercial agriculture. Statement II is also true; the Indigo Commission was established in 1860 to investigate the exploitative indigo cultivation system and the grievances of the ryots following the Indigo Revolt of 1859-60 [2]. The commission's report was critical of the planters and affirmed that peasants could not be compelled to grow indigo [2]. However, Statement II is not the correct explanation of Statement I; the commission was a reactive measure to the revolt and systemic abuses, whereas Statement I describes the industry's earlier commercial expansion and dominance.

Sources

1. [1] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 11: Economic Impact of the British Rule > DEVELOPMENT OF MODERN INDUSTRIES > p. 191
2. [2] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 31: Peasant Movements 1857-1947 > Indigo Revolt (1859-60) > p. 575