Scarcity of Essential Commodities
Which essential commodities were scarcely available in India's domestic market due to export surplus?
- Gold and silver
- Food grains, clothes, and kerosene — Correct Answer
- Heavy machinery
- Automobiles
Explanation:
Correct Answer Explanation
Food grains, clothes, kerosene etc. were scarcely available in the domestic market due to the large export surplus.
Key Points:
- Export surplus came at a huge cost to the economy.
- Did not result in any gold or silver flow into India.
- Surplus used for British war and colonial office expenses.
- This is the essence of 'Drain of 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.
