Question

Why did the export surplus not increase Indian wealth?

• A. The gold and silver earned from exports were used to purchase less expensive finished goods from Britain
• B. The gold and silver earned from exports were used to purchase more expensive finished goods from Britain
• C. The gold and silver earned from exports were used to purchase equally costing finished goods from Britain
• D. None of the above

Answer 1

Answer: (B)

The gold and silver earned from exports were used to purchase more expensive finished goods from Britain

The reason why the British wanted to export manufactured goods is because selling manufactured goods means making more money as a state. Having more money as a state in return means that it can reinvest and can help its citizens better, or spend the money in any other way it had to, to keep the country going .The Britishers utilized the wealth earned from export not for India's development but to purchase expensive and materials from Britain for their own use.