Which one of the following statements about the Colonial economy is NO

Which one of the following statements about the Colonial economy is NOT correct ?

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The British presence inhibited indigenous capitalism

Laissez-faire actively promoted indigenous capitalism

The 'white collective monopoly' came earliest and remained most pronounced in Eastern India

The Bombay hinterland was difficult to penetrate before the construction of railways

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2017

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Statement B is NOT correct. While laissez-faire is theoretically minimal state intervention, in the context of colonial India, British economic policies were *not* truly laissez-faire in a way that equally benefited indigenous capitalism. The state actively intervened through policies regarding trade, tariffs, railways, and currency to favor British capital and goods, often hindering the growth of Indian industries and enterprise.

Colonial economic policy in India was characterized by a system designed to serve the interests of Britain, transforming India into a supplier of raw materials and a market for British manufactured goods. This often involved state intervention that created an unequal playing field disadvantageous to indigenous capital.

Statement A is correct; British policies led to deindustrialization and inhibited indigenous capital accumulation. Statement C is correct; the British agency houses established early dominance in Eastern India (Bengal) which became the center of colonial administration and trade. Statement D is correct; infrastructure like railways was built primarily to facilitate the movement of goods for colonial exploitation, making the interior accessible to ports like Bombay.

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