Question

Where did India's export surplus was used during the colonial period?

[0.80 marks]

• A. To make payments for expenses incurred by an office set up by the colonial government in Britain
• B. To meet expenses on the war fought by the British government
• C. To import visible items
• D. All of the above

Answer 1

The correct option is D All of the above

India’s foreign trade generated a large export surplus. However, there was a drain of such surplus into Britain. India’s export surplus was used:
(i) to make payments for expenses incurred by an office set up by the colonial government in Britain.
(ii) to meet expenses on war fought by the British government.
(iii) to import invisible items.