The incentive for mechnanization was less in India because

wage rate relative to price of capital was high in India

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wage rate relative to price of capital was low in India

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wage rate and price of capital were compareable in India

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none of these

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Solution

The correct option is B
wage rate relative to price of capital was low in India

Since labour was cheap in India, the incentive for mechanization was less in India, especially because of the capital-intensive nature of it.

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