The correct answer is Option (3) → Colonialism
British colonial rule fundamentally restructured the Indian economy to serve the interests of the British Empire. This process, while often exploitative, created new market opportunities and led to the emergence of a new class of Indian entrepreneurs.
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Integration into a Global Market: The British transitioned India from a largely self-sufficient economy into a key node in their global trade network. India became a source of raw materials (like cotton and jute) for British industries and a captive market for their finished goods. This expansion of trade created new avenues for business.
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New Infrastructure and Institutions: The British introduced modern infrastructure like railways, ports, and a telegraph system, primarily to facilitate the movement of goods for export. They also established new legal, banking, and administrative systems. Indian merchants, traders, and financiers who adapted to these new structures were able to thrive and form a new business community.
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Emergence of a New Class: While traditional industries often declined under colonial policies, a new class of Indian entrepreneurs, such as the Tatas and Birlas, rose to prominence. They initially served as intermediaries for the British but later invested in modern industries like textiles and steel, laying the foundations for a modern capitalist class in India.
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