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Why was there a rush of foreign capital in India in the second half of the 19th century?
1. Prospects of high profits
2. Cheap and readily available raw material
3. Willingness of administration to provide all help
4. Ready market in India
Choose from the following options.
- a)1, 2 and 3 Only
- b)2, 3 and 4 only
- c)2 and 4 only
- d)All of them
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Why was there a rush of foreign capital in India in the second half o...
There was a rush of foreign capital in India in the second half of the 19th century due to several factors. These factors include:
1. Prospects of high profits:
- The British Industrial Revolution had created a demand for raw materials for industries in Europe, and India had abundant resources such as cotton, jute, tea, and minerals.
- The availability of these resources and the potential for high profits attracted foreign capital to invest in India.
2. Cheap and readily available raw material:
- India was known for its vast reserves of raw materials, including cotton, jute, indigo, and minerals.
- These raw materials were available at low prices, making it economically viable for foreign investors to establish industries in India.
3. Willingness of administration to provide all help:
- The British colonial administration in India actively encouraged foreign investment by providing various incentives and support.
- They offered protection for foreign investors, ensured a stable legal system, and provided infrastructure such as railways, ports, and telegraph lines.
- The administration also implemented policies that favored foreign capital, such as land revenue reforms and taxation policies.
4. Ready market in India:
- India had a large population and a growing middle class, which provided a ready market for goods produced by industries.
- The demand for textiles, machinery, transportation, and other products was increasing, creating lucrative opportunities for foreign investors.
- Additionally, the British colonial government implemented policies that promoted the consumption of British goods in India, further boosting the market for foreign capital.
By combining these factors, the rush of foreign capital in India during the second half of the 19th century was fueled by the prospects of high profits, the availability of cheap and readily available raw materials, the willingness of the administration to provide support, and the presence of a ready market in India. These factors created a favorable environment for foreign investors to establish industries and exploit the resources of India for their own economic benefit.
1. Prospects of high profits:
- The British Industrial Revolution had created a demand for raw materials for industries in Europe, and India had abundant resources such as cotton, jute, tea, and minerals.
- The availability of these resources and the potential for high profits attracted foreign capital to invest in India.
2. Cheap and readily available raw material:
- India was known for its vast reserves of raw materials, including cotton, jute, indigo, and minerals.
- These raw materials were available at low prices, making it economically viable for foreign investors to establish industries in India.
3. Willingness of administration to provide all help:
- The British colonial administration in India actively encouraged foreign investment by providing various incentives and support.
- They offered protection for foreign investors, ensured a stable legal system, and provided infrastructure such as railways, ports, and telegraph lines.
- The administration also implemented policies that favored foreign capital, such as land revenue reforms and taxation policies.
4. Ready market in India:
- India had a large population and a growing middle class, which provided a ready market for goods produced by industries.
- The demand for textiles, machinery, transportation, and other products was increasing, creating lucrative opportunities for foreign investors.
- Additionally, the British colonial government implemented policies that promoted the consumption of British goods in India, further boosting the market for foreign capital.
By combining these factors, the rush of foreign capital in India during the second half of the 19th century was fueled by the prospects of high profits, the availability of cheap and readily available raw materials, the willingness of the administration to provide support, and the presence of a ready market in India. These factors created a favorable environment for foreign investors to establish industries and exploit the resources of India for their own economic benefit.
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Why was there a rush of foreign capital in India in the second half o...
There was a rush of foreign capital in India at this time due to prospects of high profits, availability of cheap labour, cheap and readily available raw material, the ready market in India and the neighbours, diminishing avenues for investments at home, the willingness of the administration to provide all help, and ready markets abroad for some Indian exports such as tea, jute and manganese.
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Why was there a rush of foreign capital in India in the second half of the 19th century?1. Prospects of high profits 2. Cheap and readily available raw material 3. Willingness of administration to provide all help 4. Ready market in India Choose from the following options.a) 1, 2 and 3 Onlyb) 2, 3 and 4 onlyc) 2 and 4 onlyd) All of themCorrect answer is option 'D'. Can you explain this answer?
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