Question

The term 'export surplus' during British rule means that India:

Options

• Refused to trade with Britain and only exported to China

• Exported more than it imported in value of primary goods

• Imported more than it exported in value of finished goods

• Exported and imported exactly equal values of goods

Answer 1

Export surplus refers to a situation where a country exports more than it imports in value. During British rule, India exported more than it imported in value of primary goods, but paradoxically this surplus caused domestic scarcity and drained wealth to Britain.