Invisible Items in Trade
View Complete Answer & Explanation
Question (English)
The 'drain of Indian wealth' during the colonial period included the import of:
- Gold and silver
- Invisible items ✓ Correct
- Agricultural products
- Handicraft goods
Explanation:
Correct Answer Explanation
The drain included payment for colonial expenses and the import of invisible items, all of which led to the drain of Indian wealth.
Key Points:
- Invisible items include services, interest payments, and other non-physical trade items.
- The export surplus was used for: colonial office expenses in Britain, war expenses, and invisible imports.
- No gold or silver flowed into India despite the export surplus.
📚 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.
