Which of the following statements about India’s foreign trade under British rule is true?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → The British turned India into an exporter of raw materials and an importer of finished goods.
Under colonial rule, India sent raw materials such as raw cotton, raw silk, jute and indigo to Britain and bought back finished goods such as cotton cloth and machinery made in British factories. This suited Britain’s industries and ruined India’s own handicrafts.