Question

Why was India's foreign trade heavily restricted?

• A. As it would benefit Britain
• B. As it would benefit India
• C. As it would benefit India and Britain
• D. None of the above

Answer 1

The correct option is A As it would benefit Britain

They exported raw materials from India at cheap rates and imported finished goods from Britain which adversely affected the Indian industries and economy as a whole.The British imposed heavy duties on exportation of Indian goods and no duties were levied on British goods which benefited them. The British ruled India to drain its resources and thus turned India into a colonial economy. They adopt various policies and methods which adversely affected the Indian Economy.