Statement I: In the 19th century, India was the largest British colony. Statement I : India became a big market for British manufactured goods and a field of investment for foreign capital in the 19th century.

Statement I is true as India was the most significant and largest colony of the British Empire in the 19th century, often referred to as the 'Jewel in the Crown' due to its vast territory and population [4]. Statement II is also true and provides the correct explanation for India's status. During the 19th century, the Industrial Revolution transformed India into a massive market for British manufactured goods, particularly textiles, while simultaneously serving as a source of raw materials [3]. Furthermore, India became a primary field for foreign capital investment, notably in the construction of the railway network, which was designed to integrate the internal market for British trade and facilitate the movement of goods [3]. This economic exploitation and capital investment in infrastructure like railways and plantations were central to the 19th-century colonial project in India [1].

Sources

1. [4] Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 4: The Colonial Era in India > Enter the British > p. 91
2. [2] Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 4: The Colonial Era in India > LET'S EXPLORE > p. 100
3. [3] Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 4: The Colonial Era in India > Reshaping economic structures to serve imperial needs > p. 103
4. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 26: Constitutional, Administrative and Judicial Developments > Genesis of Administrative Changes: New Stage of Colonialism > p. 524