Question map
Which of the following statements with regard to construction of railways in colonial India by the British companies is /are NOT true ? 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India 2. The railways were to be managed mainly by the Government 3. There was no system of preferential freight charges 4. The companies were to get the land free from the Government Select the correct answer using the code given below:
Explanation
The construction of railways in colonial India was governed by the 'Guarantee System'. Under this, British companies were guaranteed a 5 percent return on their investment by the Government of India [2]. Statement 1 is therefore true. Statement 2 is false because the early railways were wholly privately managed by British companies, not the Government [2]. Statement 3 is false because the British implemented a system of preferential freight charges; rates were lower for transporting raw materials to ports and British manufactured goods to the interior, while higher for internal trade between Indian cities. Statement 4 is true as the government provided land free of cost to the companies [2]. Since statements 2 and 3 are incorrect, option 2 is the correct choice for the 'NOT true' query.
Sources
- [1] https://warwick.ac.uk/fac/soc/economics/intranet/manage/calendar/railways_may_2010-all.pdf
- [2] https://infra.economictimes.indiatimes.com/news/railways/the-dark-truth-behind-british-railways-in-india-economic-exploitation-and-control/123253517