Definition of Capital Goods Industry
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Question (English)
What are 'capital goods industries'?
- Industries that produce consumer goods directly
- Industries that produce machine tools used for producing articles for current consumption ✓ Correct
- Industries that export raw materials
- Industries that focus on agriculture
Explanation:
Correct Answer Explanation
Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption.
Key Points:
- During the colonial period, there was hardly any capital goods industry in India.
- This absence meant India could not promote further industrialisation on its own.
- This was a major structural weakness of India's industrial sector at independence.
📚 About this Topic — CH-1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
This multiple choice question is from CH-1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE to strengthen your preparation.
