All questions of The Economic Impact of British Rule in India for UPSC CSE Exam

Sugar

The country that banned import of Indian opium is both China and Britain. Here's an explanation:

Opium Trade in India
- In the 18th and 19th centuries, opium was a major cash crop in India and was cultivated under British East India Company's rule.
- The opium produced in India was primarily used for export to China, where it was in high demand.
- The British East India Company established a monopoly over the opium trade in India and began exporting large quantities of opium to China in exchange for tea and silver.

Opium Wars
- China soon realized the harmful effects of opium addiction on its population and attempted to ban the import of opium from India in the early 19th century.
- However, the British East India Company continued to smuggle opium into China, which led to the First Opium War between China and Britain in 1839-1842.
- The war resulted in China's defeat and the signing of the Treaty of Nanking, which forced China to open its ports to British trade and pay a large indemnity to Britain.
- The opium trade continued to flourish despite China's protests, leading to the Second Opium War in 1856-1860.
- This war resulted in further concessions by China, including the legalization of opium trade and the opening up of more ports to foreign trade.

Banning of Indian Opium
- In the late 19th century, both China and Britain began to take steps to curb the opium trade.
- China passed laws to ban opium smoking and cultivation, and in 1906, it banned the import of Indian opium altogether.
- Britain, which had a vested interest in the opium trade, also took steps to limit its production and consumption in India.
- In 1917, the British government passed the Dangerous Drugs Act, which regulated the manufacture, sale, and distribution of opium and other drugs in India and other British colonies.

In conclusion, both China and Britain played a significant role in the opium trade, with India serving as a major producer and exporter of opium. However, by the early 20th century, both countries recognized the harmful effects of opium addiction and took steps to ban or regulate its import and consumption.

Temporary Zamindari Settlement in Central India and Avadh

The British colonial government introduced the zamindari system as a way to collect revenue from the agricultural land in India. Under this system, the zamindars were made owners of land and were responsible for paying revenue to the government. However, the system had its flaws and led to exploitation and impoverishment of the peasants who worked on the land.

To address these issues, the British introduced a temporary zamindari settlement in Central India and Avadh. This settlement was different from the permanent zamindari settlement introduced earlier in Bengal, Bihar and Orissa.

The temporary zamindari settlement was introduced after the Indian Rebellion of 1857 as a way to gain the trust of the local elites and ensure stability in the region. The settlement was only meant to last for a period of 30 years and the revenue paid by the zamindars was revised periodically to reflect the changing economic conditions.

Features of the Temporary Zamindari Settlement

Some of the key features of the temporary zamindari settlement were:

1. Ownership of Land: The zamindars were made owners of the land and were responsible for paying revenue to the government.

2. Periodic Revision of Revenue: The revenue paid by the zamindars was revised every 10 years to reflect the changing economic conditions.

3. No Permanent Transfer of Ownership: Unlike the permanent zamindari settlement, the temporary settlement did not allow for the permanent transfer of ownership of land.

4. Limited Powers of the Zamindars: The zamindars were given limited powers and were not allowed to evict peasants from the land or extract excessive rents.

Impact of the Temporary Zamindari Settlement

The temporary zamindari settlement had a mixed impact on the region. On the one hand, it helped to stabilize the region after the Indian Rebellion of 1857. The settlement also helped to improve the relationship between the British colonial government and the local elites.

However, the settlement did little to address the underlying issues of landlessness and exploitation faced by the peasants. The periodic revision of revenue meant that the zamindars were constantly looking for ways to increase their income, often at the expense of the peasants.

Conclusion

In conclusion, the temporary zamindari settlement in Central India and Avadh was introduced as a way to address the flaws of the permanent zamindari settlement. While it had some positive impact on the region, it did little to address the underlying issues of landlessness and exploitation.

Opening of the First Railway Line in India

Introduction:
The first railway line in India was opened to traffic in 1853. It was an important event in the history of Indian transportation as it marked the beginning of a new era of faster and more convenient travel.

The Route:
The railway line ran between Bombay (now Mumbai) and Thane. The distance covered by the line was 34 km. It was the first railway line to be built in Asia.

Construction:
The construction of the railway line was initiated by Lord Dalhousie, the Governor-General of India at that time. The line was constructed by the Great Indian Peninsula Railway (GIPR) company. The work started in 1851 and was completed in 1853.

Significance:
The opening of the first railway line in India had a significant impact on the country's transportation system. It provided a faster and more reliable means of transport for goods and people. It helped to connect different regions of the country and facilitated the movement of people and goods across the country.

Impact:
The railway line had a significant impact on the development of the country. It helped to promote trade and commerce and facilitated the movement of people across the country. It also led to the growth of cities and towns along the railway line.

Conclusion:
In conclusion, the opening of the first railway line in India was a significant event in the country's history. It marked the beginning of a new era in transportation and had a significant impact on the country's development.

C

Correct answer is option 'c' .

None of these

ᴅᴀᴅɴɪ ᴍᴇʀᴄʜᴀɴᴛs.

A

Answer:

Dadabhai Naoroji said the statement "The British rule was a bleeding drain from India".

Explanation:

Dadabhai Naoroji was a prominent Indian nationalist leader and a member of the Indian National Congress. He was the first Indian to be elected to the British Parliament. In his book "Poverty and Un-British Rule in India", he analyzed the economic impact of British rule on India. He argued that the British were exploiting India and that colonialism was draining the country of its wealth. He called this phenomenon the "drain of wealth" or the "bleeding drain" theory. He calculated that India was losing about 200 million pounds annually to Britain, which was more than half of India's total annual revenue. This theory became an important part of the Indian nationalist movement and helped to galvanize opposition to British rule. Naoroji's work inspired other Indian nationalists, such as M.G. Ranade, R.C. Dutt, and B.C. Pal, to write about the economic exploitation of India by the British.

The decline of Indian handicrafts in India and abroad can be attributed to various factors. However, the most significant factor was the colonial policies of the British.

Impact of British colonial policies on Indian handicrafts:

1. British East India Company's monopoly: The British East India Company had a monopoly over trade in India. They controlled the production, distribution, and sale of Indian handicrafts. This gave them immense power to manipulate the market and price of these products, leading to a decline in demand for Indian handicrafts.

2. Imposition of heavy taxes: The British imposed heavy taxes on Indian handicrafts, making them expensive and unaffordable for the common people. This led to a decline in demand for these products and a loss of markets in India.

3. Promotion of British goods: The British promoted their own manufactured goods from England, which were cheaper and of better quality than Indian handicrafts. This led to a decline in demand for Indian handicrafts in both India and foreign markets.

4. Destruction of Indian handicraft centers: The British destroyed Indian handicraft centers, which were the backbone of the Indian economy. This led to a loss of skilled artisans, and the decline of Indian handicrafts.

The decline of Indian handicrafts in India and abroad was a gradual process. However, the passing of the Charter Act of 1813, which allowed the import of British manufactured goods into India duty-free, was a significant blow to Indian handicrafts. This led to a decline in demand for Indian handicrafts, loss of markets in India, and eventually the decline of Indian handicrafts.

Investments in India before WWI

Overview:
Before the First World War, India was a British colony and a significant source of capital investment for the British Empire. The majority of British capital investment in India was made in three major sectors: plantation industry, railways and transport, and banking and insurance.

Plantation Industry:
The plantation industry in India included tea, coffee, rubber, and other cash crops. British investors heavily invested in this sector to exploit the vast natural resources of India. India was the largest producer of tea in the world, and the British invested heavily in tea plantations in Assam and Darjeeling. The plantation industry was a profitable venture for the British, as they could extract cheap labor and raw materials from India.

Railways and Transport:
The British also invested heavily in the development of railways and transport infrastructure in India. The railways were crucial for the British to transport raw materials and finished goods from one part of the country to another. The British invested in railway lines connecting major cities and towns, and the railway network expanded rapidly during this period. The British also invested in the development of ports and harbors, which facilitated the movement of goods and people across the country.

Banking and Insurance:
The British also invested heavily in the banking and insurance sector in India. The British established banks and insurance companies to finance their colonial ventures in India. The banks provided loans to the British planters and traders, and the insurance companies insured their cargoes and goods against loss or damage.

All of the above:
All three sectors mentioned above were crucial for the British to exploit the resources of India and maintain their colonial rule. The British invested heavily in these sectors, and by the beginning of the First World War, nearly 97% of the British capital investment in India was made in these sectors.

Explanation:

Source of Drain of Indian Wealth:

After 1833, the single biggest source of drain of Indian wealth to Britain was British capital investment in India.

Reasons:

1. Transfer of Capital: The British invested capital in India, which was then transferred back to Britain in the form of dividends, profits, and salaries.

2. Interest Payments: India had to pay interest on the capital borrowed from Britain. This reduced the amount of money available for investment in India.

3. Unequal Trade: India was forced to import goods from Britain, while its own goods were not given free access to the British market.

4. Tariff Policy: The British imposed heavy tariffs on Indian goods, making them uncompetitive in the British market.

5. Deindustrialization: The British policies led to the deindustrialization of India. Indian industries were destroyed and replaced by British industries.

6. Land Revenue System: The British introduced a land revenue system that was exploitative in nature. The peasants were forced to pay high taxes, which reduced their income and savings.

Conclusion:

Thus, British capital investment in India was the single biggest source of drain of Indian wealth to Britain after 1833. This led to the impoverishment of India and the growth of British wealth.

Constituted the main body of the middle class in Bengal in British India A zamindar, zomindar, zomidar, or jomidar, in the Indian subcontinent was an aristocrat. The term means land owner in Persian.

Introduction:
Postage stamps are small pieces of paper that are used to indicate that postage has been paid for a letter or package to be delivered by mail. They are affixed to the envelope or package before it is sent to its destination. The introduction of postage stamps revolutionized the postal service by making it more efficient and reliable. The question asks about the person who introduced postage stamps in India.

Lord Dalhousie and Postage Stamps:
Lord Dalhousie was the Governor-General of India from 1848 to 1856. During his tenure, he implemented several reforms in different sectors. One of his major contributions was the introduction of postage stamps in India. The first postage stamp in India was issued on 1st July 1852. It was a half-anna stamp and featured a profile of Queen Victoria. The stamp was printed in Calcutta and was valid for postage throughout India.

Importance of Postage Stamps:
The introduction of postage stamps was a significant development in the history of the postal service. Before the introduction of postage stamps, the postal system was inefficient and unreliable. The recipient of a letter or package had to pay for the delivery, which led to delays and disputes. The introduction of postage stamps eliminated this problem by making the sender responsible for paying the postage. This made the postal service more efficient and reliable.

Conclusion:
In conclusion, Lord Dalhousie was the person who introduced postage stamps in India. This was a significant development in the history of the postal service as it made it more efficient and reliable. The first postage stamp in India was issued on 1st July 1852 and featured a profile of Queen Victoria.

Dutch is a West Germanic language spoken by around 23 million people as a first language and 5 million people as a second language, constituting the majority of people in the Netherlands and Belgium. It is the third most widely spoken Germanic language, after its close relatives English and German.

Introduction
The Lancashire cotton textiles, also known as Manchester cotton, were first introduced in India during the British colonial period. This had a significant impact on the Indian cotton industry and ultimately contributed to the decline of the Indian textile industry.

Answer
The correct answer is option 'A' which states that the Lancashire cotton textiles were first introduced in India in 1786. This was during the period of British colonial rule in India. The British wanted to expand their textile industry and saw India as a source of raw materials, such as cotton.

Impact on Indian Cotton Industry
The introduction of Lancashire cotton textiles had a significant impact on the Indian cotton industry. The British began to import large quantities of raw cotton from India to feed their textile mills in Lancashire. This led to a decline in the availability of cotton in India, which in turn led to an increase in prices. As a result, many small-scale cotton weavers in India were unable to compete with the cheaper, mass-produced Lancashire cotton textiles.

Decline of Indian Textile Industry
The decline of the Indian cotton industry was a significant factor in the decline of the Indian textile industry as a whole. The British began to export Lancashire cotton textiles to India, which were cheaper and of better quality than the Indian textiles. This led to a decline in the demand for Indian textiles, which in turn led to a decline in the Indian textile industry.

Conclusion
In conclusion, the Lancashire cotton textiles were first introduced in India in 1786 during the British colonial period. This had a significant impact on the Indian cotton industry and contributed to the decline of the Indian textile industry.

The East India Company was established in 1600 to trade with India and the East Indies. Over time, the company began to purchase Indian goods out of the revenue of Bengal and to export them to England. These purchases were called investments.

Explanation:
The East India Company, through its various trading posts and factories, had established a lucrative trade in India. The company purchased Indian goods, such as textiles, spices, tea, and opium, with the revenue it collected from Bengal. These goods were then exported to England, where they were sold at a profit.

The purchases made by the East India Company were called investments because they were made with the aim of generating a return on the company's capital. The company invested in Indian goods because they were in high demand in England and could be sold at a profit.

The revenue generated by the sale of these goods was used to pay dividends to the company's shareholders. Dividends are a portion of a company's profits that are distributed to its shareholders. In this case, the profits were generated through the sale of Indian goods.

In summary, the East India Company purchased Indian goods with the aim of generating a return on its capital. These purchases were called investments and the revenue generated from the sale of these goods was used to pay dividends to the company's shareholders.

Introduction:
The Government of India, under British rule, implemented several policies to increase the number of purchasers of British goods in India. One such policy was the pursuit of fresh conquests and direct occupation of protected states.

Explanation:
The British government in India aimed to establish a monopoly over the Indian market and promote the sale of British manufactured goods. To achieve this, they adopted various strategies, including territorial expansion and direct occupation.

Fresh Conquests:
One of the ways the British government sought to increase the number of purchasers of British goods was through fresh conquests. By acquiring new territories and states, they could exert control over the local economy and ensure a market for British goods. Through military campaigns and alliances with local rulers, the British expanded their territorial holdings in India. This allowed them to establish a direct influence over the economic policies and trade practices of these conquered regions.

Direct Occupation of Protected States:
Another strategy used by the British government was the direct occupation of protected states. Protected states were princely states that maintained a degree of autonomy under British suzerainty. By occupying these states, the British government could directly control their economic policies and trade practices. This control enabled them to promote the purchase of British goods by discouraging or limiting the production of indigenous goods.

Impact on Indigenous Manufacture:
The policies of fresh conquests and direct occupation had a significant impact on indigenous manufacture, particularly in the textile industry. The British government actively discouraged the production of Indian cotton goods to promote the sale of British textiles. They imposed high tariffs on Indian textiles, making them less competitive in the market. This led to a decline in the indigenous textile industry, which had been a significant source of employment and economic activity in India for centuries.

Conclusion:
By pursuing a policy of fresh conquests and direct occupation, the British government aimed to increase the number of purchasers of British goods in India. This strategy involved expanding their territorial holdings and exerting control over the economic policies of conquered and protected states. These policies had a detrimental impact on indigenous manufacture, particularly in the textile industry, as the British actively discouraged the production of Indian cotton goods.

Importance of India's Export Surplus for UK's Balance of Payments

Introduction:
The United Kingdom's balance of payments is the record of all economic transactions between the UK and the rest of the world. By the end of the 19th century, the UK's economy was heavily dependent on trade, and it required a steady inflow of goods to maintain its balance of payments.

India's Export Surplus:
India was a British colony during the 19th century, and it was a significant source of raw materials for the UK's industries. However, India's importance for the UK's balance of payments was not only due to the raw materials it provided but also due to its export surplus.

An export surplus occurs when a country exports more goods than it imports. India had a substantial export surplus during the 19th century, which meant that it was sending more goods to the UK than it was receiving. This surplus was essential for the UK's balance of payments as it provided the UK with a steady inflow of goods.

Importance of India's Export Surplus:
The export surplus from India was crucial for the UK's balance of payments for several reasons:

1. It provided the UK with a steady inflow of goods, which helped to maintain the balance of payments.

2. The surplus allowed the UK to import goods from other countries, which it needed for its industries.

3. The surplus also helped to finance the UK's overseas investments, which were essential for its economic growth.

4. The surplus contributed to the growth of the UK's merchant marine, which was essential for its global trade.

Conclusion:
In conclusion, by the end of the 19th century, India's export surplus had become absolutely vital for the UK's balance of payments. The surplus provided the UK with a steady inflow of goods, which helped to maintain its balance of payments and support its economic growth.

1813

The Transformation of the East India Company
The East India Company, initially established as a trading corporation in 1600, evolved into a significant colonial power in India by the mid-18th century, particularly after the pivotal year of 1757.
Key Events Leading to Colonial Power
- Initial Trading Activities (1600-1650)
The East India Company was set up to conduct trade in spices, silk, cotton, and other commodities. During this period, its activities were primarily commercial.
- Expansion of Influence (1650-1680)
The Company began to establish factories and secure trade routes. However, its role remained largely that of a trader, relying on agreements with local rulers for protection and trade rights.
- Rise to Power (1680-1757)
By the late 17th century, the Company faced competition and conflicts with other European powers and local kingdoms. This period saw a gradual militarization of its operations, but it was not yet a colonial power.
- Battle of Plassey (1757)
The turning point occurred with the Battle of Plassey, where the East India Company, through political intrigue and military might, defeated the Nawab of Bengal, Siraj-ud-Daula. This victory marked the beginning of direct control over vast territories in India.
Consequences of the Transformation
- Establishment of Control
Following the victory at Plassey, the Company expanded its territorial control and governance, effectively ruling large parts of India.
- Transition to Colonial Governance
By consolidating power, the East India Company transitioned from a mere trading entity to a governing authority, laying the groundwork for colonial rule that lasted until 1947.
In conclusion, the year 1757 was critical as it marked the East India Company’s transformation into a colonial power, signaling the start of direct British rule in India.

Explanation:
The East India Company was established in 1600 with the aim of trading with the East Indies, but it gradually expanded its operations in India. Till the mid-eighteenth century, the profits of the East India Company primarily came from the sale of Indian goods abroad. This can be explained through the following points:

Expansion of the Company's Trade:
During the 17th century, the East India Company expanded its trade by establishing factories and trading posts in various regions of India, such as Surat, Madras, Bombay, Calcutta, and Bengal. They also established a monopoly over the trade of certain goods such as cotton, silk, spices, and tea, which were in high demand in Europe.

Export of Indian Goods:
The East India Company exported these Indian goods to Europe, where they were sold at a high price, generating huge profits for the Company. For example, Indian cotton was in high demand in England, and the Company's exports of Indian cotton to England increased significantly during the 18th century.

Monopoly over Indian Trade:
The East India Company had a monopoly over the trade of certain goods, which meant that they could control the supply and demand of these goods, and therefore, they could fix the prices at which these goods were sold. This led to huge profits for the Company.

Impact of the Company's Trade:
The Company's trade had a profound impact on India's economy. The export of Indian goods led to a drain of wealth from India, as the profits generated from the sale of these goods went to England. Moreover, the Company's monopoly over certain goods led to the exploitation of Indian producers, who were forced to sell their goods at a low price to the Company.

In conclusion, till the mid-eighteenth century, the profits of the East India Company primarily came from the export of Indian goods to Europe. The Company's trade had a significant impact on India's economy, leading to a drain of wealth and the exploitation of Indian producers.

The End of the East India Company's Monopoly
The East India Company's monopoly over the tea trade and trade with China was officially dismantled by the Charter Act of 1833. This act marked a significant shift in British trade policies regarding India and China.
Key Features of the Charter Act of 1833:
- End of Monopoly: The act removed the East India Company's monopoly on the tea trade, allowing private traders to engage in tea commerce with China.
- Impact on Trade: This opened the doors for competition in the tea market, leading to increased availability and variety of tea in Britain.
Context of the Act:
- Political Changes: By the early 19th century, there was growing criticism of the East India Company's exclusive trading rights, which were seen as detrimental to British interests.
- Economic Policies: The British government recognized the potential of free trade to stimulate economic growth and enhance revenues from India.
Subsequent Developments:
- Increased Imports: After the act, British merchants rapidly increased their imports of Chinese tea, leading to a boom in both the tea and opium trades.
- Framework for Future Acts: The Charter Act of 1833 set a precedent for further reforms in the governance of India and trade policies, leading to subsequent acts that would continue to modify the role of the East India Company.
In summary, the Charter Act of 1833 was pivotal in dismantling the East India Company's monopoly, paving the way for a more liberal trade environment in tea and enhancing the economic interactions between Britain and China.

Defoe's Observation on Indian Cloth

Defoe, the famous English writer, made the observation that Indian cloth had crept into English houses, closets, and bed chambers to the extent that curtains, cushions, chairs, and even beds themselves were nothing but calicos or Indian stuffs. This observation reflects the immense popularity of Indian cloth in England during the 18th century.

Factors behind the Popularity of Indian Cloth

There were several factors behind the growing popularity of Indian cloth in England during the 18th century:

1. Cheapness: Indian cloth was much cheaper than English cloth. This was due to a variety of reasons, including lower labour costs, cheaper raw materials, and less stringent quality control.

2. Variety: Indian cloth was available in a wide variety of colours, designs, and fabrics. This made it very popular among English consumers who were looking for something different from the plain, drab fabrics that were commonly available at the time.

3. Exoticism: India was seen as an exotic and mysterious land, and Indian cloth was seen as a way of bringing a bit of that exoticism into English homes.

Impact of Indian Cloth on England

The popularity of Indian cloth had a significant impact on England during the 18th century:

1. Economic Impact: The import of Indian cloth helped to stimulate the English economy by creating jobs in the textile industry. It also helped to drive down the price of cloth, which made it more affordable for ordinary people.

2. Cultural Impact: The use of Indian cloth in English homes helped to create a new style of interior design that was more colourful and vibrant than the austere styles that had been popular in the past.

3. Political Impact: The import of Indian cloth was a major factor in the growth of the British Empire, as it helped to create a demand for British goods in India. This demand helped to fuel British trade, which in turn helped to fund the expansion of the British Empire.

Conclusion

In conclusion, Defoe's observation on Indian cloth reflects the immense popularity of Indian cloth in England during the 18th century. The popularity of Indian cloth had a significant impact on England, both economically and culturally, and helped to fuel the growth of the British Empire.

Free-trader industrial capitalist phase (1813-1858) in India

Introduction:
During the early 19th century, India saw a rapid transformation into a market for Manchester textiles and a source for raw materials. This period is referred to as the Free-trader industrial capitalist phase.

Factors contributing to the Free-trader industrial capitalist phase:
1. British policies: The British government adopted policies that encouraged free trade and the establishment of industries in India. This led to the growth of industries in India and the expansion of trade with Britain.
2. Industrial revolution: The industrial revolution in Britain led to the need for raw materials and markets for their finished goods. India provided both, and this led to the growth of the textile industry in India.
3. Improved transportation: The construction of roads, canals, and railways improved transportation in India. This made it easier for goods to be transported from one place to another and facilitated trade between India and Britain.

Impact of the Free-trader industrial capitalist phase:
1. Economic growth: The Free-trader industrial capitalist phase led to the growth of industries in India, which in turn led to economic growth.
2. Exploitation of resources: The British exploited India's resources, particularly raw materials, for their own benefit. This led to the depletion of India's resources and the impoverishment of its people.
3. Dependence on Britain: India became dependent on Britain for its manufactured goods, which led to the decline of indigenous industries.
4. Social changes: The growth of industries led to social changes in India. The emergence of a new class of industrialists and the decline of traditional industries led to changes in the social hierarchy.

Conclusion:
The Free-trader industrial capitalist phase had a profound impact on India's economy and society. While it led to economic growth, it also led to the exploitation of India's resources and the decline of indigenous industries. The legacy of this phase is still felt in India today.

The correct answer is option C - Export of Indian manufacturers was increasing.

During the 17th and 18th centuries, the East India Company established its factories in various parts of India. The Indian rulers, particularly the Mughal emperors, tolerated and even encouraged the establishment of these factories due to several reasons.

1. Economic benefits: The establishment of the Company's factories brought economic benefits to the Indian rulers. The Company engaged in trade, exporting Indian goods to other parts of the world. This export-oriented trade helped to stimulate the Indian economy and increase revenue for the Indian rulers through the collection of taxes and duties on these goods. The Company also provided employment opportunities to the local population, contributing to economic growth and stability.

2. Technological advancements: The East India Company brought with it advanced technology and expertise in manufacturing and trade. Indian rulers realized the potential benefits of these technological advancements and saw an opportunity to improve their own manufacturing capabilities. The Company's factories introduced new techniques, machinery, and skills that Indian craftsmen and artisans could learn and adopt. This helped to modernize Indian industries and enhance the quality and productivity of Indian goods, making them more competitive in the international market.

3. Access to European markets: The Company's factories acted as a gateway for Indian goods to reach European markets. With the establishment of these factories, Indian rulers could tap into the lucrative European demand for luxury goods such as textiles, spices, and indigo. This export trade not only brought substantial revenue to the Indian rulers but also enhanced the reputation and prestige of Indian craftsmanship and products in the international market.

4. Political alliances: The Indian rulers formed political alliances with the East India Company as a means to protect their own interests. They saw the Company as a powerful ally that could help them maintain their authority and safeguard their territories from rival powers. By allowing the Company to establish its factories, the Indian rulers gained the support and protection of the Company's military forces, which acted as a deterrent against potential threats from other European powers.

In conclusion, the Indian rulers tolerated and encouraged the establishment of the East India Company's factories in India primarily because it brought economic benefits, technological advancements, access to European markets, and political alliances. The increasing export of Indian manufacturers played a vital role in driving these advantages, making it the correct answer to the question.

Development of Railways in India

I. Investment in Railways
- Over 350 crores invested in railways
- Mostly by British investors
- Some Indian capital invested

II. Financial Losses
- Investors suffered financial losses for the first 50 years

III. Purpose of Railways
- Railways were primarily developed to serve the economic, political, and military interests of British imperialism

Explanation:
The correct answer is option C. The development of railways in India was marked by the investment of over 350 crores, with most of the investment coming from British investors. However, some Indian capital was also invested in railways. Investors suffered financial losses for the first 50 years of the development of railways in India. The railways were primarily developed to serve the economic, political, and military interests of British imperialism. The railways were used to transport raw materials from India to Britain and to facilitate the export of finished goods from Britain to India. The railways also helped the British to tighten their control over India by facilitating the movement of troops and officials. In conclusion, the development of railways in India was primarily driven by the interests of British imperialism, and investors suffered financial losses in the initial years.