Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

What were the main imports of India under colonial rule?

Options:

Finished consumer goods

Capital goods like light machinery

Heavy machinery and industrial equipment

Both 1 and 2

Correct Answer:

Both 1 and 2

Explanation:

Since ancient times, India has held significant importance as a trading nation. However, the colonial government's policies regarding commodity production, trade, and tariffs had a detrimental impact on the structure, composition, and volume of India's foreign trade. As a consequence, India became primarily an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, and jute, while relying on imports for finished consumer goods like cotton, silk, woollen clothes, and capital goods like light machinery produced in British factories.