The question consists of two statements, namely, Assertion (A) and Reason (R). Use them to choose the correct alternative.
Assertion (A): During the British rule, India’s exports exceeded the imports leading to surplus of balance of trade.
Reason (R): The surplus of balance of trade was used for growth and development of India.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. A is true and R is false.
- During British rule, India frequently had a trade surplus, with exports surpassing imports and resulting in a positive balance of trade. This surplus arose from exporting raw materials and finished goods to Britain while imports were limited. Despite this apparent economic advantage, the benefits were largely channeled to Britain.
- Colonial policies ensured that the trade profits and resources predominantly benefited the British economy, rather than fostering growth or development within India itself.