Status of Foreign Trade Before and During British Rule

Was There Export Surplus or Deficit during British Rule?

There was Export Surplus

It means India's Export were more than Imports

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

Question 9

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

Question 15

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

MCQ Other Books

Question 1

In the following questions, select the correct answers:

The export surplus during the British rule was used:

1. To make payments for expenses incurred by an office set up by the colonial government in Britain
2. To meet expenses on war fought by the British Government
3. To export invisible items
4. To import invisible items

Question 2

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

1. China
2. Korea
3. Britain
4. Sri Lanka

Question 3

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

1. India and America
2. India and Britain
3. India and Sri Lanka
4. India and Pakistan

Question 4

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

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Question 5

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.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Question 6

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.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.