Which of the following statements is/are correct in relation to the industrial development in British India?

1. The early imperialistic domination in Bombay, Bengal and Gujarat led to virtual absence of capitalistic development in these areas.
2. The Charter Act of 1813 was a big blow to Indian handicrafts.

Statement 1 is wrong: No doubt that the early imperialistic domination led to virtual absence of capitalistic development in Bengal but in Bombay and Gujarat the cause for the absence of ndustrial development was the threat from the Marathas. Thus, after 1818, that is, after the collapse of the Marathas these regions started witnessing signs of industrial development. Statement 2 is correct: The Charter Act of 1813 ended the Company's monopoly of Indian trade and made it an open market. With this, the Indian handicrafts lost not only to foreign markets but also to Indian market.