Why are Marwaris the most widespread and best-known business communit…

The correct answer is Option (2) → They had extensive social networks which created relations of trust required to operate their banking system.

Option (1) They were a successful business community long before the colonial period. — Incorrect. The Marwaris became a successful business community only during the colonial period, when they took advantage of new opportunities in colonial cities such as Calcutta.

Option (2) They had extensive social networks which created relations of trust required to operate their banking system. — Correct. Like the Nakarattars, the success of the Marwaris rested on their extensive social networks, which created the relations of trust necessary to operate their banking system. Money and credit could move through members of the community they trusted, and so they settled throughout the country to carry out trade and moneylending, from industrial families such as the Birlas to small traders in town bazaars.

Option (3) They controlled the long distance trade in ‘Salt’ during colonial period — Incorrect. The Marwaris rose through trade, moneylending and banking, and later through industry. A hold over the salt trade is not what made them a business community spread across India.

Option (4) They took up banking and moneylending only after Independence. — Incorrect. Many Marwari families became moneylenders in the colonial period itself, and by acting as bankers they even helped the commercial expansion of the British. After Independence, some families turned into modern industrialists.