Solution

The aim of British rule was to make India a source of raw materials to feed the industries back in Britain and present India as a virgin market for the finished goods from Britain. The policies created by them were for the development of industries in Britain. The industrial policy had the following shortfalls:

1. British neglected the developed handicraft industries to deprive India of revenue from exports. Indian handicraft was having high demand all over the world, but due to high export tariff imposed on goods exported from India, the price of products raised exponentially which impacted its demand and led to the collapse of handicraft industry.

2. Indian industries suffered from lack of investment in machinery and the British government was not at all interested in assisting for the growth of industries, therefore, growth significantly decreased.