Question

What is export surplus? How did it prove disadvantageous to India?

Answer 1

Export surplus is the excess of exports over imports. While generally it is a positive indicator, it proved disadvantageous to India due to the following reasons:

(a) Commodities were not available to Indians but were being exported. Ignoring the domestic needs, goods were being exported for the advantage of Britain.

(b) This export surplus was used to fulfill administrative and war expenses of Britain. This was called drain of Indian wealth. This export surplus did not lead to any flow of gold and silver into the country.