Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Which of the following statements is true regarding Britishers in regard to "Foreign Trade"?

Options:

Britishers turned India into an exporter of raw materials and importer of finished goods

Britishers turned India into an exporter of finished goods and importer of raw materials

Britishers turned India into an exporter of intermediate goods and importer of raw materials

Britishers turned India into an exporter of finished goods and importer of intermediate goods

Correct Answer:

Britishers turned India into an exporter of raw materials and importer of finished goods

Explanation:

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.