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CA Foundation · Business Economics · Indian Economy

Which one of the following was the actual position of India's industrial base and infrastructure at the time of Independence?

At Independence, India's industrial base was narrow and its capital goods sector weak. Railways, begun in 1853, were built mainly to serve British commercial and military needs, not Indian development, so the colonial infrastructure had limited developmental benefits for the economy.

  1. ACapital goods industry was well developed and India was self-sufficient in machinery, while railways were absent
  2. BIndustrial base was narrow, with a weak capital goods sector, and the railways, introduced in 1853, mainly served colonial commercial and military interests rather than India's developmentCorrect
  3. CIndia had a strong public sector industrial base established by the colonial government with Indian ownership
  4. DThe industrial sector was dominated by heavy industries like steel, with several large government-owned plants

Explanation

The colonial legacy was a weak and narrow industrial base, with very little capital goods production; modern industries like Tata Steel (1907) were exceptions. Railways, started in 1853, helped the colonial government move raw materials and troops, and their benefit to Indian development was incidental. The options claiming self-sufficiency or a strong public sector contradict the facts.

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