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Asked by Jayashree Last Modified
Answer British colonial administration suffered from the following shortfall in industrial policy:-
a) De-industrialisation- Decline of the handicraft industry
The British systematically destroyed Indian handicraft industries and no modern industrial base was allowed to come up. The primary motive of British rule behind the de-industrialisation was two-fold: a) to get raw materials from India at cheap rates to be used by upcoming modern industries in Britain; b) to sell finished goods of British industries in Indian markets at higher prices
b) Adverse effects of the decline of Handicraft Industry:
The decline of Handicrafts in India had two adverse impacts: a) it led to unemployment on a massive scale; b) it encouraged imports from Britain as Indian goods could not withstand the foreign competition of cheap, manufactured goods
c) Lack of Capital Goods Industry:
During the British rule, there was no well-developed capital goods industry to promote further industrialisation in India.
d) Limited Role of Public Sector:
The limited area of operation of the public sector was also a significant reason for the downfall of industries. The public sector was confined to the railways, power, communication, ports and some departmental undertakings.
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