SociologyIndian Society: Market as a social Institution

Why are Marwaris the most widespread and best known community busines…

Why are Marwaris the most widespread and best known community business community in India?

Choose the correct statement:

Answer & explanation

Correct answer: option 2

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

While Option 1 (taking advantage of new opportunities) is true, it only captures part of the reason.
Option 2 identifies the core enabler of their business success: social networks that facilitated trust, which was crucial for banking and trade across long distances.
Option 3 (salt trade) is not a defining feature of Marwari business dominance.
Option 4 is a result of their success but not the foundational reason.

"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 and settled throughout the country to carry out trade and moneylending. 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. Many Marwari families accumulated enough wealth to become moneylenders, and by acting as bankers also helped the commercial expansion of the British in India (Hardgrove 2004)."

Why are Marwaris the most widespread and best known community business community in India?

Choose the correct statement:

Answer & explanation

Correct answer: option 2

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

While Option 1 (taking advantage of new opportunities) is true, it only captures part of the reason.
Option 2 identifies the core enabler of their business success: social networks that facilitated trust, which was crucial for banking and trade across long distances.
Option 3 (salt trade) is not a defining feature of Marwari business dominance.
Option 4 is a result of their success but not the foundational reason.

"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 and settled throughout the country to carry out trade and moneylending. 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. Many Marwari families accumulated enough wealth to become moneylenders, and by acting as bankers also helped the commercial expansion of the British in India (Hardgrove 2004)."