Question

Under British colonial rule, India's role in foreign trade was that of:

Options

• An independent trading nation with balanced trade

• A supplier of raw materials and a market for finished goods

• A neutral hub for trade between Britain and China only

• A supplier of finished goods and a market for raw materials

Answer 1

British colonial policies shaped the structure of India's foreign trade such that India was used as a supplier of raw materials and a market for finished goods. This arrangement served British economic interests rather than India's own development needs.