Status of Foreign Trade Before and During British Rule - Teachoo.JPG

When did  Foreign Trade with Britain intensify (Increase) - Teachoo.JPG

Was There Export Surplus or Deficit during British Rule?

There was Export Surplus

It means India's Export were more than Imports

Did we have Export Surplus or Deficit during British Rule - Teachoo.JPG

Why was Export Surplus not good for India During British Rule - Teachoo.JPG

Is Export Surplus Good for India or Bad?

Normally,Export Surplus is good for country as foreign exchange/gold/silver received on export Increases country's wealth

But, in case of Export Surplus during British Rule

Majority of Trade was with Britain

Money was not received in India in form of Gold/Silver from Britain

Money was used to Make Payments of

Expenses on War

Office of British Officers in India

Import of Invisible Items(Services from Britain)

 

 
NCERT Questions

Q9

What do you understand by the drain of Indian wealth during the colonial period?

View Answer

Q15

Indicate the volume and direction of trade at the time of independence.

View Answer

MCQ Other Books

Q1

In the following questions, select the correct answers:

1 The export surplus during the British rule was used:

A To make payments for expenses incurred by an office set up by the colonial government in Britain

B To meet expenses on war fought by the British Government

C To export invisible items

D To import invisible items

View Answer

Q2

More than half of India's foreign trade was restricted to:

A China

B Korea

C Britain

D Sri Lanka

View Answer

Q3

The opening of the Suez Canal served as a direct route for ships operating between:

A India and America

B India and Britain

C India and Sri Lanka

D India and Pakistan

View Answer

Q4

In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R).

Mark the correct choice:

1 Assertion (A): India became an exporter of primary products and an importer of finished consumer and capital goods produced in Britain.

Reason (R): Restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s

foreign trade.

 

CBSE Sample Papers [CBSE SQP 2021] U

A Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

B Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

C Assertion (A) is true, but Reason (R) is false.

D Assertion (A) is false, but Reason (R) is true.

View Answer

Q5

Assertion (A): During colonial period, India’s export trade was export surplus.

Reason (R): During colonial period, India’s export were more than its import.

A Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

B Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

C Assertion (A) is true, but Reason (R) is false.

D Assertion (A) is false, but Reason (R) is true.

View Answer

Q6

Assertion (A): Indian economy was source of raw material for British industries.

Reason (R): During colonial period, the raw materials were exported from India to Britain to be used in the industry.

A Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

B Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

C Assertion (A) is true, but Reason (R) is false.

D Assertion (A) is false, but Reason (R) is true.

View Answer
  1. Class 12 NCERT
  2. Indian Economic Development

Transcript

Status of Foreign Trade Before and During British Rule Before British Rule India Exported Handicraft goods World Received Money (Gold) India was an exporter of Finished Products (Example –Handicrafts) Trade was with All over world Money was received in India in form of Gold, Silver etc. (Increased Wealth of India) During British Rule India Exported Cotton (Raw Material) Britain Imported Shirts (Finished goods) India was an Exporter of Raw Materials (Raw Silk, Cotton, Silk, Woolen Clothes) And Importer of Finished Goods (Clothes made of cotton, silk, wool) Trade was mainly with Britain (More than 50%) and Few Neighboring Countries China, Ceylon(Sri Lanka),Persia (Iran) Money was used to make payments of Expenses on War Office of British Officers in India Import of Invisible Items (Services from Britain) When did Foreign Trade with Britain intensify (Increase) It increased after opening of Suez Canal in 1869 Foreign Trade with Britain (both Import and Export) Before 1869 Goods had to Sail Around Africa Took More time High Cost of Transportation Less Trade From 1869 Suez Canal opened (Shorter Route) Took less time Reduced Cost of Transportation More Trade (Trade Intensified) Did we have Export Surplus or Deficit during British Rule? Export Surplus Export is more than Imports Export 1000 Import 900 Export Surplus 100 It is Good for Economy (as there is inflow of Foreign Exchange into economy) Export Deficit Imports are more than Exports Export 800 Import 900 Export Déficit -100 It is Bad for Economy (as there is outflow of Foreign Exchange into economy) Did we have Export Surplus or Deficit during British Rule? We had Export Surplus but it was not good for Indian Economy Why was Export Surplus not good for India During British Rule? Normal Export Surplus India Export World Money Money Received in form of Gold/Silver/Foreign Exchange Money earned from exports is used for welfare of economy (Increases country's wealth) Export Surplus During British Rule India Export Britain Money Adjusted against Expense on War Salary of British Officers Import of Invisibles Money not Received in form of Gold/Silver/Coins as Majority of Export was with Britain Money earned from exports adjusted against Expenses on War Office of British Officers in India Import of Invisible Items (Services from Britain) No Money left for welfare of Indian People

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