AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
European Managing Agencies invested in tea, coffee, mining, indigo, and jute because these were products required primarily for export trade and not for sale in the Indian domestic market. Their priority was to extract raw materials and agricultural produce for European markets, not to develop India's industrial base.
This pattern shaped Indian industrial growth in a skewed manner — capital goods industries, manufacturing, and industries serving Indian consumers were neglected. Indian businessmen, when they entered industry, had to find gaps (like coarse cotton yarn) since European agencies dominated export-oriented sectors. As a result, India's industrial growth remained limited, dependent, and lopsided until the First World War.
Source: Chapter 4, Section 5 — The Peculiarities of Industrial Growth
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