Colonial India had hardly any capital goods industry. Which of the following units would count as a capital goods industry?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A unit making lathes and looms that the textile mills then use to make cloth
A capital goods industry makes machine tools, which are then used to produce articles for current consumption. Lathes and looms are machines that mills use to make cloth, so a unit making them is a capital goods industry.
Option (1) A cotton textile mill in Bombay producing cloth for the Indian market — Incorrect. Cloth is an article of consumption, not a machine tool.
Option (2) A jute mill in Bengal producing sacks for export — Incorrect. Sacks are a finished product, not a machine used to make other goods.
Option (3) A unit making lathes and looms that the textile mills then use to make cloth — Correct. Its machines are used to produce other goods.
Option (4) A sugar mill producing sugar for households — Incorrect. Sugar is consumed by households. The mill makes a consumer good.
NCERT (2026-27): “1.4 Industrial Sector … A few other industries in the fields of sugar, cement, paper etc. came up after the Second World War. However, there was hardly any capital goods industry to help promote further industrialisation in India. Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption. …” |