English Test 115
Directions for Questions from 1 to 6:
Go through the passage below and answer the question that follow
A major problem of Indian industrial and commercial development was the supply of capital. Until 1850, British capital was shy of Indian adventure.
The risks and unknown factors were too great, and
prospects in other directions too bright. The working capital of the agency houses after 1813 at first consisted mainly of the savings of the
Company’s servants. Their cries of woe when these houses fell as in the crisis of 1831 were loud and poignant. Indian capital was also shy for
different reasons. It needed to acquire confidence in the new regime, and outside the presidency towns, to acquire the habit of investment.
Investment for large-scale production for ‘enabling’ works like railways was an unfamiliar and suspected practice. Thus the first big developments
came when European capital was coaxed into the country by government guarantees or went of its own free will to develop industries with which it
was already familiar as in the case of jute or coal. Indian capital followed where it was in touch with European practice as in Bombay and dealing
with familiar products like cotton. These considerations throw into all the greater relief the achievement of the Tatas in developing iron and steel.
Thus the major part of the capital provided was British with a steadily
increasing Indian proportion from 1900. As late as 1931-32 the capital of companies registered abroad was nearly four times that of companies
registered in India. But this is not an exact guide because it leaves out of account the stock in British companies held by Indians, as well as
government stocks. Speaking generally it may be said that the capital of the cotton industry was mainly Indian, that of the iron and steel industry
entirely so, that of the jute industry about half and half, while the coal and plantation industries were mainly British, together with that used for the
building of railways, irrigation, and oth