Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

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.

Options:

Both (A) and (R) are true and (R) is the correct explanation.

Both (A) and (R) are true but (R) is not the correct explanation of (A).

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

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

Correct Answer:

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

Explanation:

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.