Explanation:

• Haidar Ali died in 1782 in the course of the second Anglo-Mysore War and was succeeded by his son Tipu.
• Tipu Sultan ruled Mysore till his death in 1799. His desire to change with the times was symbolized in the introduction of a new calendar, a new system of coinage, and new scales of weights and measures.
•  He showed a keen interest in the French Revolution. He planted a ‘Tree of Liberty’ at Srirangapatam and he became a member of a Jacobin Club.
• Statement 1 is correct: He made some attempts to introduce modern industries in India by importing foreign workmen as experts and by extending state support to many industries. He sent emissaries to France, Turkey, Iran and Pegu Myanmar to develop foreign trade. He also traded with China.He even tried to set up a trading company on the pattern of European companies and thus sought to imitate their commercial practices. He tried to promote trade with Russia and Arabia by setting up state trading institutions in the port towns.
• Statement 2 is correct: When the British occupied Mysore after defeating and killing Tipu in 1799, they were surprised to find that the Mysore peasant was much more prosperous than the peasant in British occupied Madras. Sir John Shore, Governor-General from 1793 to 1798, wrote later that “the peasantry of his dominions are protected and their labour encouraged and rewarded”. Another British observer wrote of Tipu’s Mysore as “well cultivated, populous with industrious inhabitants, cities newly founded and commerce extending”.
•  He tried to do away with the custom of giving jagirs, and thus increase state income. He also made an attempt to reduce the hereditary possessions of the poligars and to eliminate the intermediaries between the state and the cultivator.
• Tipu Sultan fixed one third of the crop as land revenue: on dry lands and it was collected in money. Waste lands were rent-free in the first year, rented at 1/4 th in the second year in the succeeding years to the usual amount. Under his contemporary, the Nizam of Hyderabad (1792 A.D. to 1800 A.D.) the revenue was reduced due to different causes, including the severe famines which visited all western districts during the years 1792 and 1793 A.D.
• Though not free from contemporary economic backwardness, Mysore flourished economically under Haidar Ali and Tipu, especially when seen in contrast with its immediate past or with the rest of the country.