Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:
In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.
Assertion (A)- India's foreign trade generated huge export surplus still economy deteriorated.
Reason (R)- All the export surplus revenue was used by Britishers in their personal expenses, on war etc. leading to drain of Indian wealth.
Options:
Both (A) and (R) are true and (R) is the correct explanation.
Both (A) and (R) are true but (R) is not the correct explanation of (A).
(A) Is true but (R) is false.
(A) Is false but (R) is true.
Correct Answer:
Both (A) and (R) are true and (R) is the correct explanation.
Explanation:
The India's foreign trade surplus was utilized by Britishers for their own interest and did nothing for the Indian economy.