Which of the following Governor Generals introduced the Laissez Faire policy of trade ?

The correct answer is - Lord Dalhousie

Key Points

• Lord Dalhousie introduced the Laissez Faire policy of trade during his tenure as Governor-General of India.
• The Laissez Faire policy advocates minimal government intervention in economic activities, allowing free trade and market forces to operate independently.
• Lord Dalhousie's administration focused on fostering economic growth through policies that encouraged private enterprise and trade liberalization.
• This policy helped in the integration of India into the global economy during the colonial period by reducing trade barriers and promoting infrastructure development, such as the construction of railways.
• Lord Dalhousie also emphasized modernizing India's economy, which aligned with the principles of Laissez Faire.

Additional Information

• Background of Laissez Faire Policy
  • The term Laissez Faire is derived from French, meaning "let do" or "let it be," symbolizing minimal government interference in economic matters.
  • This policy was prominently advocated by classical economists like Adam Smith, emphasizing the importance of free markets.
• Lord Dalhousie's Contributions
  • He is known for implementing policies that aimed at modernizing India, including the introduction of railways, telegraphs, and postal systems, which were crucial for economic liberalization.
  • His reforms supported the principles of Laissez Faire by encouraging infrastructure development, which facilitated trade and commerce.
• Impact of Laissez Faire Policy in India
  • While the policy promoted economic growth, it also led to exploitation of Indian resources and markets by British industrialists.
  • The policy created a dependency on British imports, adversely affecting local industries and artisans.