Correct Option
The correct option is 2 and 3 only.
Explanation
The question pertains to the state of the Indian industrial sector during the British colonial administration, specifically on the eve of independence. The colonial economic policies systematically de-industrialized India, reducing it to a supplier of raw materials and a consumer of finished British goods, resulting in a stunted industrial base.
Statement-wise Analysis
- Statement 1 is Incorrect. During the colonial period, there was no strong capital goods industry in India. The capital goods industry refers to industries which can produce machine tools which are, in turn, used for producing articles for current consumption. The establishment of a few manufacturing units was not supported by a corresponding growth in the production of capital goods, forcing domestic industry to rely heavily on imported machinery.
- Statement 2 is Correct. The growth rate of the new industrial sector was very small. While some industries like cotton and jute textiles, and later iron and steel (TISCO), sugar, cement, and paper established a foothold, their overall expansion was slow and restricted due to a lack of government support and adverse tariff policies.
- Statement 3 is Correct. The contribution of the industrial sector to the Gross Value Added (GVA) or Gross Domestic Product (GDP) remained very small. The economy was overwhelmingly agrarian, and the limited industrialization was concentrated in a few pockets, failing to contribute significantly to the national income.
Key Takeaway
The British colonial rule left the Indian industrial sector with a lopsided structure, characterized by the absence of a sound capital goods base, low growth rates, and a negligible contribution to the national economy.