2017 · Q34
Which one of the following statements about the Colonial economy is NOT correct?
history-of-indiaeuropeans-british-expansion
- AThe British presence inhibited indigenous capitalism
- BLaissez-faire actively promoted indigenous capitalism
- CThe 'white collective monopoly' came earliest and remained most pronounced in Eastern India
- DThe Bombay hinterland was difficult to penetrate before the construction of railways
Explanation
British policy was not laissez-faire toward indigenous enterprise: it exposed Indian handicrafts to duty-free British manufactures and inhibited the growth of native capitalism. The British presence did inhibit indigenous capitalism, the white collective monopoly was strongest in Eastern India, and the Bombay hinterland indeed opened up only with the coming of the railways. Hence (B) is the statement that is NOT correct.