CBSE Class 11-commerce Answered

The primary motive of the colonial government was to make Indians as exporters of raw materials for the modern industries in Britain and expanding the Indian market for finished goods produced in those industries. During the second half of the nineteenth century, modern industry began to establish their market in India at a slow pace. It started with cotton and jute textile mills and later, the iron and steel industries developed in the twentieth century. The Tata Iron and Steel company was established in 1907 and few other industries such as sugar, cement and paper were initiated after the Second World War.

The capital goods industry was completely absent to promote industrialisation in India. Manufacturing units were not substitute to the near wholesale displacement of the Indian traditional handicraft industries. Above all, the industrial sector’s contribution to gross domestic product was minimal. Their area of operation was limited and remained with the railway, power generation, communication and ports.