Question

Q. Consider the following statements regarding modern Indian industry during the colonial period.

Which of the statements given above is/are incorrect?

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3 only

Answer 1

The correct option is D 1, 2 and 3 only

Explanation:

All the 3 statements are incorrect:

During colonial rule, Indian owned enterprises failed to bring the industrial revolution as happened in England or in various other countries.

Adverse factors for Indian-owned industries

• No widespread access to credit institutions since domestic savings are systematically kept down under colonial rule reflected by the low levels of income and growth.
• Discriminatory tariff policies of the govt favouring British capitalist interests who were backed by financial & technical infrastructure at home. So they had to face unequal competition from foreign companies.
• Due to the limited reach of technical education, the industry lacked sufficient technical manpower.

Also India witnessed partial industrialization in the 1st half of the 20th century-which had some structural and institutional weakness

• The industrial development was lopsided —core & heavy industries & power generation were neglected & some regions were favoured more than the others causing regional disparities. These regional disparities hampered the process of nation-building.