Question
In the 19th century, which of the following reasons were
responsible for the lack of economic development in India? (1) Officially, the British government followed a policy of non-intervention, but in reality, it was a policy of discriminatory intervention. (2) European entrepreneurs were supported by banks and agencies, whereas Indians had to rely on family, caste, and community-based financial resources. (3) When ownership of industrial enterprises was transferred to private individuals, domestic investors lacked sufficient awareness and encouragement. Choose the correct answer using the codes given below:Solution
In the 19th century, multiple factors were responsible for the lack of economic development in India: • The British government claimed to follow a policy of non-intervention but in practice, it exercised discriminatory intervention, favoring European interests. Hence, statement 1 is correct. • European entrepreneurs had the support of banks and agency houses, while Indian businessmen had to depend on their family networks and caste associations for financial resources. Thus, statement 2 is correct. • Even when private ownership of industrial ventures became possible, domestic investors were not sufficiently encouraged or made aware to invest efficiently. Therefore, statement 3 is also correct. Thus, all three statements are correct, and the correct answer is (d) 1, 2, and 3.
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BENEFICIAL