Practicing Success
The export surplus generated in India's foreign trade during British rule was not utilized for which of the following purpose? |
to cover expenses incurred by a colonial government office in Britain to cover expenses related to wars fought by the British government to cover expenses related to the import of invisible items none of the above |
none of the above |
Throughout the colonial period, the most significant characteristic of India's foreign trade was the generation of a substantial export surplus. However, this surplus came at a tremendous cost to the country's economy. Essential commodities like food grains, clothes, and kerosene were scarce in the domestic market. Additionally, this export surplus did not result in the inflow of gold or silver into India. Instead, it was utilized to cover expenses incurred by a colonial government office in Britain, expenses related to wars fought by the British government, and the import of invisible items. All these factors contributed to the draining of Indian wealth. |