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Q82 (NDA-I/2017) History & Culture › National Movement (1857–1947) › Colonial economic impact Answer Verified

Which one of the following was NOT a feature of railways in colonial India ?

Result
Your answer: —  Â·  Correct: B
Explanation

The colonial railway system in India was primarily designed to serve British imperial, strategic, and commercial interests rather than Indian economic development [1]. While the railways integrated internal markets, the network was specifically planned to connect the hinterlands with ports to facilitate the export of raw materials and the distribution of British manufactured goods [2]. This planning often resulted in a lack of interconnection between internal market cities. Furthermore, railway construction significantly disturbed local ecology, subverting natural drainage systems and contributing to epidemics like malaria. However, the claim of a 15% guaranteed interest is historically incorrect. Under the 'Guarantee System' established in the 1850s, British private investors were actually offered a 5% guaranteed rate of interest on their capital, paid from Indian tax revenues if profits fell short.

Sources

  1. [1] 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. 104
  2. [2] 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
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