Characteristic of Colonial Foreign Trade
What was the most important characteristic of India's foreign trade during the colonial period?
- Trade deficit with Britain
- Generation of a large export surplus — Correct Answer
- Equal balance of trade
- High imports of raw materials
Explanation:
Correct Answer Explanation
The most important characteristic was the generation of a large export surplus. However, this surplus came at a huge cost to the economy.
Key Points:
- Essential commodities like food grains, clothes, kerosene were scarce domestically.
- Export surplus did not result in any gold/silver flow into India.
- Used for colonial expenses in Britain and war expenses.
- This led to the drain of Indian wealth.
📚 About this Topic — CH-1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE
This multiple choice question is from CH-1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-1: INDIAN ECONOMY ON THE EVE OF INDEPENDENCE to strengthen your preparation.
