In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.
Assertion (A)- More than half of India's trade was restricted to Britain during colonial rule.
Reason (R)- The profits that were accrued from foreign trade were enjoyed by the Indians.

(A) Is true but (R) is false.

The correct answer is Option 3: (A) Is true but (R) is false.

Assertion (A) is true because during the colonial period, a significant portion of India's trade was restricted to Britain, with Britain being the primary destination for Indian exports and the primary source of imports.

Reason (R) is false because the profits from foreign trade during the colonial period were not enjoyed by Indians. Instead, the profits were largely accrued by British merchants and the British government, while the economic benefits for Indians were minimal and often detrimental.

Indians were unable to enjoy the profits due to exploitative motive of Britishers. Half of the trade was done with Britain and the remaining half was done with China, Ceylon and Persia. The export surplus did not result in any flow of gold or silver into India. Rather, this was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war, again fought by the British government, and the import of invisible items, all of which led to the drain of Indian wealth.