Question map
Which one among the following statements about industries in colonial India is not correct?
Explanation
The statement that the growth of the cotton industry resulted from government support is incorrect. In colonial India, the British administration followed a policy of 'imperialism of free trade' and was generally indifferent or even hostile to Indian industrial development [3]. The colonial state had a limited interest in industrial growth and often imposed policies that favored British imports, such as Manchester goods, over local production [3]. Instead of state support, the cotton textile industry, which was almost wholly owned by Indian entrepreneurs in regions like Bombay and Ahmedabad, relied on ethnic networks and community capital to overcome the lack of supportive institutions [4]. While the jute industry was dominated by European managing agencies and focused on exports, the Indian-owned cotton industry grew as an import-substituting activity despite the colonial government's discriminatory economic framework [3].
Sources
- [3] https://discovery.dundee.ac.uk/ws/portalfiles/portal/6367461/Alexis_Wearmouth_Thesis_final.pdf
- [1] https://warwick.ac.uk/fac/soc/economics/staff/bgupta/wp/capital_flows_oct_11.pdf
- [4] India and the Contemporary World – II. History-Class X . NCERT(Revised ed 2025) > Chapter 4: The Age of Industrialisation > 5 The Peculiarities of Industrial Growth > p. 97