Question

India had a large export surplus under the colonial rule. However, the Indian economy did not benefit from this. Why?

• A. There was a shortage of essential supplies in the Indian market because they were primarily exported
• B. The gains from trade were used to fund the wars fought by the British
• C. The gains from trade were used to cover the expenses of the British government in India.
• D. All of these

Answer 1

The correct option is D

All of these

Since all the surplus was exported, there was a scarcity of essential items in the Indian market. The gains from export were used to cover the expenses of British offices in India. It was also used to fund the wars fought by Britain.