Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

What were the indicators showing slow growth of modern industry during British India?

Options:

Lack of capital good industries

Limited area of operation of public sector

Less contribution to GDP

All of the above

Correct Answer:

All of the above

Explanation:

There was hardly any capital goods industry during British India 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. Britishers wanted Indian industry to be dependent for machinery and all other capital goods. Thus, didn't make adequate investment.The establishment of a few manufacturing units here and there was no substitute to the near wholesale displacement of the country’s traditional handicraft industries. Furthermore, the growth rate of the new industrial sector and its contribution to the Gross Domestic Product (GDP) or Gross Value Added remained very small. Another significant drawback of the new industrial sector was the very limited area of operation of the public sector. This sector remained confined only to the railways, power generation, communications, ports and some other departmental undertakings.