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

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

The main purpose of the setting up of railways in India was to serve the interest of the empire

British capital investments were invited with 15% guaranteed interest to be paid if necessary from Indian revenues

The construction work disturbed ecology

The construction of the railways was planned in such a way that it connected the internal markets with the ports, but provided no inter-connection between internal market cities

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC NDA-1 – 2017

Download PDF Attempt Online

The statement that British capital investments were invited with 15% guaranteed interest is NOT a feature of railways in colonial India.

Under the Guarantee System, introduced in the mid-19th century, British investors were guaranteed a fixed return on their capital invested in Indian railways, but the rate was typically 5%, not 15%. This high guaranteed return, payable from Indian revenues regardless of profit, incentivized British investment while burdening Indian finances.

Statement A is correct; railways were primarily built to facilitate the movement of raw materials from the interior to ports for export to Britain and the movement of British finished goods into internal markets, as well as for strategic military purposes. Statement C is correct; large-scale construction projects often lead to environmental changes. Statement D is correct; the network prioritized linking production areas to ports, rather than connecting internal consumption centers with each other, which hindered the development of a unified internal market beneficial to Indian industry.

More similar MCQ questions for Exam preparation:-