Which of the following statements about 'Agency Houses' is/are correct

Which of the following statements about ‘Agency Houses’ is/are correct?

They were important commercial formations in the late eighteenth and nineteenth century India.
The operation of managing agencies remained confined to Calcutta.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2022

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Statement 1 is correct. Agency Houses were significant commercial entities in colonial India, playing a crucial role in trade, finance, and industry during the late 18th and 19th centuries. Statement 2 is incorrect. While Calcutta was a major hub for Agency Houses due to its importance as a port and administrative centre, their operations and activities extended to other major port cities like Bombay (Mumbai) and Madras (Chennai), and they controlled enterprises like plantations and mines in various parts of the country.

Agency Houses evolved into ‘Managing Agencies’ and became a dominant form of business organization in India under British rule, controlling diverse enterprises from finance and trade to textiles, tea, jute, and mining.

The Managing Agency system concentrated economic power in the hands of a few firms, often foreign-owned, who managed a large number of companies for a fee and commission. The system continued well into independent India and was eventually abolished by the government in the 1970s due to concerns about concentration of wealth and economic power.

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