Question

Explain the following statement with a reason.

The British imposed heavy taxes on Indian industries.

Answer 1

The most important reason for the British imposing heavy taxes on Indian industries was:

1. India's industries had a leading position in the world market. At the same time, British industries were lagging at the back.
2. To advance the position of British goods in the market, they forced heavy taxes on Indian industries.
3. Heavy duties were imposed on the import of plain cloth. Other actions, like the prohibition of the import of Indian cloth or imposing heavy import duties, were also done.
4. To put up with these expenses, industries had to raise the prices of the goods, whereas British goods were cheaper.
5. As a result, Indian goods were displaced from their lead in the market, and British industries started to flourish.
6. Later, the pattern of the company’s commercial relations with India underwent a qualitative change. The Indian market and workers suffered, but the British gained out of it.