Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

Assertion: The opening of the Suez Canal had adversely affected the British control over India’s foreign trade during colonial era.

Reasoning: Before the opening of Suez Canal almost 90 percent of India’s foreign trade was restricted to Britain.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

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

Assertion (A) is true but Reasoning (R) is not correct.

Both Assertion and Reasoning are wrong.

Correct Answer:

Both Assertion and Reasoning are wrong.

Explanation:

For all practical purposes, Britain maintained a monopoly control over India’s exports and imports during colonial times. As a result, more than half of India’s foreign trade was restricted to Britain while the rest was allowed with a few other countries like China, Ceylon (Sri Lanka) and Persia (Iran). The opening of the Suez Canal further intensified British control over India’s foreign trade.