List of top Verbal and Logical Ability Questions asked in XAT

Passage:

Every conscious mental state carries a quality we call mood. We are always in some mood, pleasant or unpleasant to some degree. Bad moods may come from too little positive reinforcement in a person's life, along with too many punishments. Moods differ from emotions in one clear way: emotions are tied to a specific object, while moods are not. This split is not perfect, since emotions can also be aimed at something broad (a person can be angry at people in general), while a mood still carries a general sense about the state of the world at large. Moods show up as positive or negative feelings linked to health, personality, or how good a person feels life is. Moods can also grow out of an emotion, such as the mood that follows a specific event like failing to secure a loan. In that sense, a mood is the mind's judgment on the recent past. Goldie notes that an emotion can rise and fall inside a mood, while an emotion can still carry traits that are not object specific.

Moods matter to marketing because they color outlook and bias judgment. This is why consumer confidence surveys matter, since consumer confidence reflects the national mood. There is mood congruence when a person's thoughts and actions fall in line with their mood. Goleman describes this as a constant stream of feeling that runs in perfect harmony with a person's stream of thought. Mood congruence happens because a positive mood brings pleasant associations that soften later thoughts and actions, while a negative mood brings pessimistic associations that shape later judgment and behavior. A consumer in a good mood is more optimistic and confident about buying, and more willing to put up with things like waiting in a queue. Businesses try to put customers in the right mood using music and friendly staff, or place bakeries inside malls so the smell of fresh bread pulls shoppers in.

Thayer treats mood as a mix of biological and psychological influences, a kind of clinical thermometer that reflects everything going on inside and outside a person. For Thayer, the two building blocks of mood are energy and tension, combined in different amounts. A specific mixture of energy and tension, together with the thoughts they influence, produces moods. He describes four mood states:
- Calm-energy: the optimal mood for feeling good.
- Calm-tiredness: mild tiredness without stress, which can still feel pleasant.
- Tense-energy: a low level of anxiety suited to a fight-or-flight response.
- Tense-tiredness: a mix of fatigue and anxiety behind the unpleasant feeling of depression.

People generally feel down or feel good because of events happening around them, and this adds up to the national mood. People feel elated when their national soccer team wins an international match, and low when the team loses. An elated mood of calm-energy is an optimistic mood, which is good for business. Consumers, as socially involved individuals, are shaped by the prevailing social climate, and marketers talk about the national mood running for or against conspicuous consumption. Moods do change. Writing early in the nineteenth century, Tocqueville describes an American elite embarrassed by showy material display; sixty years later, in the Gilded Age, many people were eager to embrace a showy, materialistic style instead. The hard part is predicting a shift in national mood, since a change in mood affects everything from buying stocks to buying houses and washing machines. Thayer would argue that we should watch for national events likely to push people toward a tense-tiredness state or a calm-energy state, since these two extremes are more likely to shape behavior. Artists sensitive to national moods capture these long-term shifts. One example is the emotional distance between Charles Dickens's sentimental account of the death of Little Nell and Oscar Wilde's cruel joke about it (that one would need a heart of stone not to laugh at the death of Little Nell), a shift from high Victorian sentiment to the sharper cynicism found later in writers like Thomas Hardy and artists like Aubrey Beardsley.

Whenever the mind is not fully absorbed, consciousness is no longer focused and ordered, and under such conditions the mind drifts toward unpleasant thoughts, building a negative mood. Csikszentmihalyi argues that the human need to keep consciousness fully active drives a good deal of consumer behavior. Sometimes it does not matter what a person is shopping for; the act of shopping itself is one way to fill the void in consciousness when there is nothing else to do.

Question: Which of the following statements are correct, based on the passage? Statement 1: In general, emotions are object specific. Statement 2: In general, moods are not object specific. Statement 3: Moods and emotions are the same. Statement 4: As per Thayer, moods are a mix of biological and psychological influences.
Passage:

Every conscious mental state carries a quality we call mood. We are always in some mood, pleasant or unpleasant to some degree. Bad moods may come from too little positive reinforcement in a person's life, along with too many punishments. Moods differ from emotions in one clear way: emotions are tied to a specific object, while moods are not. This split is not perfect, since emotions can also be aimed at something broad (a person can be angry at people in general), while a mood still carries a general sense about the state of the world at large. Moods show up as positive or negative feelings linked to health, personality, or how good a person feels life is. Moods can also grow out of an emotion, such as the mood that follows a specific event like failing to secure a loan. In that sense, a mood is the mind's judgment on the recent past. Goldie notes that an emotion can rise and fall inside a mood, while an emotion can still carry traits that are not object specific.

Moods matter to marketing because they color outlook and bias judgment. This is why consumer confidence surveys matter, since consumer confidence reflects the national mood. There is mood congruence when a person's thoughts and actions fall in line with their mood. Goleman describes this as a constant stream of feeling that runs in perfect harmony with a person's stream of thought. Mood congruence happens because a positive mood brings pleasant associations that soften later thoughts and actions, while a negative mood brings pessimistic associations that shape later judgment and behavior. A consumer in a good mood is more optimistic and confident about buying, and more willing to put up with things like waiting in a queue. Businesses try to put customers in the right mood using music and friendly staff, or place bakeries inside malls so the smell of fresh bread pulls shoppers in.

Thayer treats mood as a mix of biological and psychological influences, a kind of clinical thermometer that reflects everything going on inside and outside a person. For Thayer, the two building blocks of mood are energy and tension, combined in different amounts. A specific mixture of energy and tension, together with the thoughts they influence, produces moods. He describes four mood states:
- Calm-energy: the optimal mood for feeling good.
- Calm-tiredness: mild tiredness without stress, which can still feel pleasant.
- Tense-energy: a low level of anxiety suited to a fight-or-flight response.
- Tense-tiredness: a mix of fatigue and anxiety behind the unpleasant feeling of depression.

People generally feel down or feel good because of events happening around them, and this adds up to the national mood. People feel elated when their national soccer team wins an international match, and low when the team loses. An elated mood of calm-energy is an optimistic mood, which is good for business. Consumers, as socially involved individuals, are shaped by the prevailing social climate, and marketers talk about the national mood running for or against conspicuous consumption. Moods do change. Writing early in the nineteenth century, Tocqueville describes an American elite embarrassed by showy material display; sixty years later, in the Gilded Age, many people were eager to embrace a showy, materialistic style instead. The hard part is predicting a shift in national mood, since a change in mood affects everything from buying stocks to buying houses and washing machines. Thayer would argue that we should watch for national events likely to push people toward a tense-tiredness state or a calm-energy state, since these two extremes are more likely to shape behavior. Artists sensitive to national moods capture these long-term shifts. One example is the emotional distance between Charles Dickens's sentimental account of the death of Little Nell and Oscar Wilde's cruel joke about it (that one would need a heart of stone not to laugh at the death of Little Nell), a shift from high Victorian sentiment to the sharper cynicism found later in writers like Thomas Hardy and artists like Aubrey Beardsley.

Whenever the mind is not fully absorbed, consciousness is no longer focused and ordered, and under such conditions the mind drifts toward unpleasant thoughts, building a negative mood. Csikszentmihalyi argues that the human need to keep consciousness fully active drives a good deal of consumer behavior. Sometimes it does not matter what a person is shopping for; the act of shopping itself is one way to fill the void in consciousness when there is nothing else to do.

Question: The statement "moods provide energy for human actions" is ________, based on the passage.
Read the following passage and answer the question that follows.

Attempting to understand science and scientific reasoning in terms of the subjective beliefs of scientists would seem to be a disappointing departure for those who seek an objective account of science. Howson and Urbach have an answer to that charge. They insist that the Bayesian theory constitutes an objective theory of scientific inference. That is, given a set of prior probabilities and some new evidence, Bayes' theorem dictates in an objective way what the new, posterior, probabilities must be in the light of that evidence. There is no difference in this respect between Bayesianism and deductive logic, because logic has nothing to say about the source of the propositions that constitute the premises of a deduction either. It simply dictates what follows from those propositions once they are given. The Bayesian defence can be taken a stage further. It can be argued that the beliefs of individual scientists, however much they might differ at the outset, can be made to converge given the appropriate input of evidence. It is easy to see in an informal way how this can come about. Suppose two scientists start out by disagreeing greatly about the probable truth of hypothesis h which predicts otherwise unexpected experimental outcome e. The one who attributes a high probability to h will regard e as less unlikely than the one who attributes a low probability to h. So P(e) will be high for the former and low for the latter. Suppose now that e is experimentally confirmed. Each scientist will have to adjust the probabilities for h by the factor P(e/h)/P(e). However, since we are assuming that e follows from h, P(e/h) is 1 and the scaling factor is 1/P(e). Consequently, the scientist who started with a low probability for h will scale up that probability by a larger factor than the scientist who started with a higher probability for h. As more positive evidence comes in, the original doubter is forced to scale up the probability in such a way that it eventually approaches that of the already convinced scientist. In this way, argue the Bayesians, widely differing subjective opinions can be brought into conformity in response to evidence in an objective way.



Strictly following the idea put forward in the article, which one of the following is a logical possibility:
Read the following passage and answer the question that follows.

The ignorant man is not the unlearned, but he who does not know himself, and the learned man is stupid when he relies on books, on knowledge and on authority to give him understanding. Understanding comes only through self-knowledge, which is awareness of one's total psychological process. Thus education, in the true sense, is the understanding of oneself, for it is within each one of us that the whole of existence is gathered. What we now call education is a matter of accumulating information and knowledge from books, which anyone can do who can read. Such education offers a subtle form of escape from ourselves and, like all escapes, it inevitably creates increasing misery. Conflict and confusion result from our own wrong relationship with people, things and ideas, and until we understand that relationship and alter it, mere learning, the gathering of facts and the acquiring of various skills, can only lead us to engulfing chaos and destruction. As society is now organized, we send our children to school to learn some technique by which they can eventually earn a livelihood. We want to make the child first and foremost a specialist, hoping thus to give him a secure economic position. But does the cultivation of a technique enable us to understand ourselves? While it is obviously necessary to know how to read and write, and to learn engineering or some other profession, will technique give us the capacity to understand life? Surely, technique is secondary; and if technique is the only thing we are striving for, we are obviously denying what is by far the greater part of life. Life is pain, joy, beauty, ugliness, love, and when we understand it as a whole, at every level, that understanding creates its own technique. But the contrary is not true: technique can never bring about creative understanding. Present-day education is a complete failure because it has overemphasized technique. In overemphasizing technique we destroy man. To cultivate capacity and efficiency without understanding life, without having a comprehensive perception of the ways of thought and desire, will only make us increasingly ruthless, which is to engender wars and jeopardize our physical security. The exclusive cultivation of technique has produced scientists, mathematicians, bridge Iwiracrarspace conquerors; but do they understand the total process of life? Can any specialist experience life as a whole? Only when he ceases to be a specialist. Technological progress does solve certain kinds of problems for some people at one level, but it introduces wider and deeper issues too. To live at one level, disregarding the total process of life, is to invite misery and destruction. The greatest need and most pressing problem for even individual is to have an integrated comprehension of life, which will enable him to meet its ever-increasing complexities. Technical knowledge, however necessary, will in no way resolve our inner, psychological pressures and conflict; and it is because we have acquired technical knowledge without understanding the total process of life that technology has become a means of destroying ourselves. The man who knows how to split the atom but has no love in his heart becomes a monster. We choose a vocation according to our capacities; but will the following of a vocation lead us out of conflict and confusion? Some form of technical training seems necessary; but when we have become engineers, physicians, accountants- then what? Is the practice of a profession the fulfilment of life? Apparently with most of us it is. Our various professions may keep us busy for the greater part of our existence; but the very things that we produce and are so entranced with are causing destruction and misery. Our attitudes and values make of things and occupations the instruments of envy, bitterness and hate.



The passage implies that:
Read the following passage and answer the question that follows.

The ignorant man is not the unlearned, but he who does not know himself, and the learned man is stupid when he relies on books, on knowledge and on authority to give him understanding. Understanding comes only through self-knowledge, which is awareness of one's total psychological process. Thus education, in the true sense, is the understanding of oneself, for it is within each one of us that the whole of existence is gathered. What we now call education is a matter of accumulating information and knowledge from books, which anyone can do who can read. Such education offers a subtle form of escape from ourselves and, like all escapes, it inevitably creates increasing misery. Conflict and confusion result from our own wrong relationship with people, things and ideas, and until we understand that relationship and alter it, mere learning, the gathering of facts and the acquiring of various skills, can only lead us to engulfing chaos and destruction. As society is now organized, we send our children to school to learn some technique by which they can eventually earn a livelihood. We want to make the child first and foremost a specialist, hoping thus to give him a secure economic position. But does the cultivation of a technique enable us to understand ourselves? While it is obviously necessary to know how to read and write, and to learn engineering or some other profession, will technique give us the capacity to understand life? Surely, technique is secondary; and if technique is the only thing we are striving for, we are obviously denying what is by far the greater part of life. Life is pain, joy, beauty, ugliness, love, and when we understand it as a whole, at every level, that understanding creates its own technique. But the contrary is not true: technique can never bring about creative understanding. Present-day education is a complete failure because it has overemphasized technique. In overemphasizing technique we destroy man. To cultivate capacity and efficiency without understanding life, without having a comprehensive perception of the ways of thought and desire, will only make us increasingly ruthless, which is to engender wars and jeopardize our physical security. The exclusive cultivation of technique has produced scientists, mathematicians, bridge Iwiracrarspace conquerors; but do they understand the total process of life? Can any specialist experience life as a whole? Only when he ceases to be a specialist. Technological progress does solve certain kinds of problems for some people at one level, but it introduces wider and deeper issues too. To live at one level, disregarding the total process of life, is to invite misery and destruction. The greatest need and most pressing problem for even individual is to have an integrated comprehension of life, which will enable him to meet its ever-increasing complexities. Technical knowledge, however necessary, will in no way resolve our inner, psychological pressures and conflict; and it is because we have acquired technical knowledge without understanding the total process of life that technology has become a means of destroying ourselves. The man who knows how to split the atom but has no love in his heart becomes a monster. We choose a vocation according to our capacities; but will the following of a vocation lead us out of conflict and confusion? Some form of technical training seems necessary; but when we have become engineers, physicians, accountants- then what? Is the practice of a profession the fulfilment of life? Apparently with most of us it is. Our various professions may keep us busy for the greater part of our existence; but the very things that we produce and are so entranced with are causing destruction and misery. Our attitudes and values make of things and occupations the instruments of envy, bitterness and hate.



This passage was most likely written in order to:
Read the following passage and answer the question that follows.

The ignorant man is not the unlearned, but he who does not know himself, and the learned man is stupid when he relies on books, on knowledge and on authority to give him understanding. Understanding comes only through self-knowledge, which is awareness of one's total psychological process. Thus education, in the true sense, is the understanding of oneself, for it is within each one of us that the whole of existence is gathered. What we now call education is a matter of accumulating information and knowledge from books, which anyone can do who can read. Such education offers a subtle form of escape from ourselves and, like all escapes, it inevitably creates increasing misery. Conflict and confusion result from our own wrong relationship with people, things and ideas, and until we understand that relationship and alter it, mere learning, the gathering of facts and the acquiring of various skills, can only lead us to engulfing chaos and destruction. As society is now organized, we send our children to school to learn some technique by which they can eventually earn a livelihood. We want to make the child first and foremost a specialist, hoping thus to give him a secure economic position. But does the cultivation of a technique enable us to understand ourselves? While it is obviously necessary to know how to read and write, and to learn engineering or some other profession, will technique give us the capacity to understand life? Surely, technique is secondary; and if technique is the only thing we are striving for, we are obviously denying what is by far the greater part of life. Life is pain, joy, beauty, ugliness, love, and when we understand it as a whole, at every level, that understanding creates its own technique. But the contrary is not true: technique can never bring about creative understanding. Present-day education is a complete failure because it has overemphasized technique. In overemphasizing technique we destroy man. To cultivate capacity and efficiency without understanding life, without having a comprehensive perception of the ways of thought and desire, will only make us increasingly ruthless, which is to engender wars and jeopardize our physical security. The exclusive cultivation of technique has produced scientists, mathematicians, bridge Iwiracrarspace conquerors; but do they understand the total process of life? Can any specialist experience life as a whole? Only when he ceases to be a specialist. Technological progress does solve certain kinds of problems for some people at one level, but it introduces wider and deeper issues too. To live at one level, disregarding the total process of life, is to invite misery and destruction. The greatest need and most pressing problem for even individual is to have an integrated comprehension of life, which will enable him to meet its ever-increasing complexities. Technical knowledge, however necessary, will in no way resolve our inner, psychological pressures and conflict; and it is because we have acquired technical knowledge without understanding the total process of life that technology has become a means of destroying ourselves. The man who knows how to split the atom but has no love in his heart becomes a monster. We choose a vocation according to our capacities; but will the following of a vocation lead us out of conflict and confusion? Some form of technical training seems necessary; but when we have become engineers, physicians, accountants- then what? Is the practice of a profession the fulfilment of life? Apparently with most of us it is. Our various professions may keep us busy for the greater part of our existence; but the very things that we produce and are so entranced with are causing destruction and misery. Our attitudes and values make of things and occupations the instruments of envy, bitterness and hate.



Which statement would most likely follow the truncated passage above?
Read the following passage and answer the question that follows.

The ignorant man is not the unlearned, but he who does not know himself, and the learned man is stupid when he relies on books, on knowledge and on authority to give him understanding. Understanding comes only through self-knowledge, which is awareness of one's total psychological process. Thus education, in the true sense, is the understanding of oneself, for it is within each one of us that the whole of existence is gathered. What we now call education is a matter of accumulating information and knowledge from books, which anyone can do who can read. Such education offers a subtle form of escape from ourselves and, like all escapes, it inevitably creates increasing misery. Conflict and confusion result from our own wrong relationship with people, things and ideas, and until we understand that relationship and alter it, mere learning, the gathering of facts and the acquiring of various skills, can only lead us to engulfing chaos and destruction. As society is now organized, we send our children to school to learn some technique by which they can eventually earn a livelihood. We want to make the child first and foremost a specialist, hoping thus to give him a secure economic position. But does the cultivation of a technique enable us to understand ourselves? While it is obviously necessary to know how to read and write, and to learn engineering or some other profession, will technique give us the capacity to understand life? Surely, technique is secondary; and if technique is the only thing we are striving for, we are obviously denying what is by far the greater part of life. Life is pain, joy, beauty, ugliness, love, and when we understand it as a whole, at every level, that understanding creates its own technique. But the contrary is not true: technique can never bring about creative understanding. Present-day education is a complete failure because it has overemphasized technique. In overemphasizing technique we destroy man. To cultivate capacity and efficiency without understanding life, without having a comprehensive perception of the ways of thought and desire, will only make us increasingly ruthless, which is to engender wars and jeopardize our physical security. The exclusive cultivation of technique has produced scientists, mathematicians, bridge Iwiracrarspace conquerors; but do they understand the total process of life? Can any specialist experience life as a whole? Only when he ceases to be a specialist. Technological progress does solve certain kinds of problems for some people at one level, but it introduces wider and deeper issues too. To live at one level, disregarding the total process of life, is to invite misery and destruction. The greatest need and most pressing problem for even individual is to have an integrated comprehension of life, which will enable him to meet its ever-increasing complexities. Technical knowledge, however necessary, will in no way resolve our inner, psychological pressures and conflict; and it is because we have acquired technical knowledge without understanding the total process of life that technology has become a means of destroying ourselves. The man who knows how to split the atom but has no love in his heart becomes a monster. We choose a vocation according to our capacities; but will the following of a vocation lead us out of conflict and confusion? Some form of technical training seems necessary; but when we have become engineers, physicians, accountants- then what? Is the practice of a profession the fulfilment of life? Apparently with most of us it is. Our various professions may keep us busy for the greater part of our existence; but the very things that we produce and are so entranced with are causing destruction and misery. Our attitudes and values make of things and occupations the instruments of envy, bitterness and hate.



What might be the most apposite title for the passage above?

Directions for questions 15 to 20: Read the passage below and answer the question that follows.

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 other public works. Management in the cotton and steel industries was mainly Indian though European technicians were freely employed, that of the jute, coal, and the plantation industries being European, the jute men in particular being Scotch. Their capital, apart of course from government enterprise, operated through joint-stock companies and managing agencies. The latter arose through the convenience found by bodies of capitalists seeking to develop some new activity and lacking any Indian experience, of operating through local agents. It arose in the period after 1813 when private merchants took over the trade formerly monopolized by the Company. The money would be found in Britain to promote a tea garden, a coal mine, or a jute mill, but the management would be confided to a firm already on the spot. The managing agency was the hyphen connecting capital with experience and local knowledge.

Until 1914 the policy of the government continued in the main to be one of 'enabling' private capital and enterprise to develop the country. Direct promotion was confined to public utilities like canals and railways. The line between enabling and interfering action became distinctly blurred, however, in the case of the cotton industry and there was a tendency for enabling action to pass over into the positive promotion of particular projects. This was most noticeable in the time of Lord Curzon with his establishment of an imperial department of agriculture with a research station at Pusa and a department of commerce and industry presided over by a sixth member of the Viceroy's Council. The first World War began the transition to a new period of active promotion and positive support. As the conflict lengthened there arose a demand for Indian manufactured goods. India failed to take full advantage of this opportunity, partly because of uncertainty as to the future and partly because the means for sudden expansion were lacking. The outcome of this situation was the appointment of an industrial commission in 1916 under pressure from London. The commission criticized the unequal development of Indian industry which had led to the missing of her war opportunity. A much closer co-operation with industry was planned through provincial departments of industry. Increased technical training and technical assistance to industry was proposed while it was suggested that the Central government should set up a stores department which should aim at making India self-sufficing in this respect. The commission's report was only partially implemented, but a stores department and provincial industrial departments were created and something was done towards promoting technical assistance. The importance of the report and its aftermath was that it marked the transition from the conception of Indian economy in broadly colonial terms with freedom for private enterprise to the conception of India as an autonomous economic unit.

From this passage, it can be inferred that one of the problem that could have cropped up in the early stages of industrialization might have been:

Read the following passage and answer the question that follows.

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 other public works. Management in the cotton and steel industries was mainly Indian though European technicians were freely employed, that of the jute, coal, and the plantation industries being European, the jute men in particular being Scotch. Their capital, apart of course from government enterprise, operated through joint-stock companies and managing agencies. The latter arose through the convenience found by bodies of capitalists seeking to develop some new activity and lacking any Indian experience, of operating through local agents. It arose in the period after 1813 when private merchants took over the trade formerly monopolized by the Company. The money would be found in Britain to promote a tea garden, a coal mine, or a jute mill, but the management would be confided to a firm already on the spot. The managing agency was the hyphen connecting capital with experience and local knowledge. Until 1914 the policy of the government continued in the main to be one of 'enabling' private capital and enterprise to develop the country. Direct promotion was confined to public utilities like canals and railways. The line between enabling and interfering action became distinctly blurred, however, in the case of the cotton industry and there was a tendency for enabling action to pass over into the positive promotion of particular projects. This was most noticeable in the time of Lord Curzon with his establishment of an imperial department of agriculture with a research station at Pusa and a department of commerce and industry presided over by a sixth member of the Viceroy's Council. The first World War began the transition to a new period of active promotion and positive support. As the conflict lengthened there arose a demand for Indian manufactured goods. India failed to take full advantage of this opportunity, partly because of uncertainty as to the future and partly because the means for sudden expansion were lacking. The outcome of this situation was the appointment of an industrial commission in 1916 under pressure from London. The commission criticized the unequal development of Indian industry which had led to the missing of her war opportunity. A much closer co-operation with industry was planned through provincial departments of industry. Increased technical training and technical assistance to industry was proposed while it was suggested that the Central government should set up a stores department which should aim at making India self-sufficing in this respect. The commission's report was only partially implemented, but a stores department and provincial industrial departments were created and something was done towards promoting technical assistance. The importance of the report and its aftermath was that it marked the transition from the conception of Indian economy in broadly colonial terms with freedom for private enterprise to the conception of India as an autonomous economic unit.



From the passage it can be inferred that during the early part of twentieth century, starting a Greenfield project was more difficult for an Indian capitalist than for an European.