Assertion: During the colonial times, there were hardly any capital goods industry to help promote further industrialisation in India.

Reasoning: The establishment manufacturing units such as Iron and Steel, Coton and Jute Textiles etc provided a substitute to the country’s traditional handicraft industries to a greater extent.

Assertion (A) is true but Reasoning (R) is not correct.

There was hardly any capital goods industry to help promote further industrialisation in India during colonial period. Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption. 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.