Usage of Export Surplus – Drain of Wealth
The export surplus during colonial rule was used for which of the following purposes?
- Development of Indian infrastructure
- Payment for colonial office expenses in Britain and war expenses — Correct Answer
- Importing gold and silver into India
- Industrial development of India
Explanation:
Correct Answer Explanation
The export surplus was used for:
- Expenses of the colonial government office in Britain
- War expenses fought by the British government
- Import of invisible items
Key Points:
- This led to the drain of Indian wealth — famously highlighted by Dadabhai Naoroji.
- Surplus did not bring any gold or silver into India.
- Essential commodities were scarcely available domestically.
📚 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.
