How did the colonial government adversely affected the structure, composition and volume of India's foreign trade? |
Imposing trade and tariff barriers Regulating restrictive policies of commodity production both 1 and 2 None of the above |
both 1 and 2 |
India has been an important trading nation since ancient times. But the restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s foreign trade. Consequently, India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute etc. and an importer of finished consumer goods like cotton, silk and woollen clothes and capital goods like light machinery produced in the factories of Britain. For all practical purposes, Britain maintained a monopoly control over India’s exports and imports. |