Question

What are the shortfalls of the industrial policy pursued by the British colonial administration?

पर्याय

• Neglect of Indian Handicraft Industries

• Lack of Investment in Indian Industries

• Both (1) and (2)

• None of the above

Answer 1

Both (1) and (2)

Explanation:

The British colonial administration's industrial policy has the following shortcomings:

1. Neglect of Indian Handicraft Industrie:
   The British used a discriminatory tariff strategy, imposing high tariffs (export charges) on India's handicraft exports while allowing free export of India's raw materials to Britain and free entry of British goods into India. As a result, Indian exports were more expensive, and the country's international demand plummeted, resulting in the demise of the handicraft industry. Indian handicrafts also faced tough competition from British machine-made fabrics. The rise of a new segment of the population that preferred British goods to home goods boosted British businesses at the expense of Indian companies. As a result, demand for Indian products has decreased, while demand for foreign items has increased.
2. Lack of Investment in Indian Industries:
   Modern Indian industries demanded capital goods investments that were out of reach for most Indian businessmen. The British government, on the other hand, had little interest in investing in Indian industries. The growth of Indian industries was severely hampered as a result of a lack of sufficient investment.