Question

Which of the following is NOT true about foreign trade during the colonial rule?

Options

• India suffered from a large trade deficit.

• Restrictive policies of commodity production, were followed.

• Britain maintained a monopoly control over lndia's exports and imports.

• India became an exporter of primary products and an importer of finished consumer goods.

Answer 1

India suffered from a large trade deficit.

Explanation:

India had a significant trade surplus under British administration, meaning that exports exceeded imports. India was supplying Britain with vast quantities of raw materials and basic goods while importing only a modest amount of machine made goods.