The correct answer is: 'Only 1 and 3'. Explanation & Key Takeaways: • There was no support from the British government. • This statement is correct. • The British colonial administration systematically favored British industries and businesses, creating policies that restricted and hindered the growth of native Indian enterprises. • Colonial policies, such as high tariffs on Indian goods and preferential treatment for British goods, limited opportunities for Indian entrepreneurs. • Indian entrepreneurs did not have the capital to set up the factory. • This statement is correct. • Limited access to financial resources and credit was a significant barrier for Indian entrepreneurs. • British banks and financial institutions typically did not extend loans or credit to Indian industrialists, thus hindering their ability to invest in factory setups. Incorrect Statements • Indian entrepreneurs had no experience in factory management. • This statement is incorrect. • While the overall industrial experience was limited, it is incorrect to say that Indian entrepreneurs had no experience at all. • There were Indian industrialists like Jamshedji Tata who had successfully established and managed factories. • However, the scale of industrial experience was not widespread due to systemic barriers imposed by colonial policies. Hence, Statements 1 and 3 are correct, and Statement 2 is incorrect. Related Concepts: • Colonial Economic Policies: • The British colonial economic policies were designed to extract resources from India, serve British economic interests, and limit the growth of local industries. • Policies such as the deindustrialization of the textile industry in Bengal were directly aimed at reducing Indian industrial competitiveness. • Challenges Faced by Indian Entrepreneurs: • In addition to lack of capital and governmental support, Indian entrepreneurs faced discrimination, limited access to technology, and inadequate infrastructure. • Despite these challenges, some industrialists like Tata and Birla laid the foundations of Indian industry, which would grow significantly post-independence.