Consider the following statements about India’s foreign trade during colonial rule:
(A) India exported primary products such as raw silk, indigo and jute.
(B) India imported capital goods like light machinery produced in the factories of Britain.
(C) More than half of India’s foreign trade was restricted to Britain.
(D) India’s export surplus brought a large inflow of gold and silver into the country.
(E) The opening of the Suez Canal reduced British control over India’s foreign trade.
How many of the above statements are correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
(A) India exported primary products such as raw silk, indigo and jute. — Correct. India became an exporter of primary products.
(B) India imported capital goods like light machinery produced in the factories of Britain. — Correct. India imported finished consumer goods and light machinery from Britain.
(C) More than half of India’s foreign trade was restricted to Britain. — Correct. Britain kept more than half of the trade; the rest was with China, Ceylon and Persia.
(D) India’s export surplus brought a large inflow of gold and silver into the country. — Incorrect. The surplus brought no gold or silver. It was used for British expenses.
(E) The opening of the Suez Canal reduced British control over India’s foreign trade. — Incorrect. The canal further intensified British control over India’s trade.
NCERT (2026-27): “1.5 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. For all practical purposes, Britain maintained a monopoly control over India’s exports and imports. 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 (see Box 1.3). …” “… Furthermore, this export surplus did not result in any flow of gold or silver into India. …” |