Question

Explain the volume and direction of foreign trade during the British rule.

Hint:

The British colonial policies limited India's manufacturing sector and reduced its ability to engage in autonomous foreign trade, making it heavily dependent on Britain.

Answer 1

During the British rule, India's foreign trade underwent significant changes. The British colonial policies transformed India into a supplier of raw materials and a market for British manufactured goods. Volume of Trade: The volume of foreign trade during British rule expanded considerably, but it was largely dictated by British interests. India's exports consisted mainly of raw materials, such as cotton, indigo, and opium, while imports primarily included manufactured goods, including textiles, machinery, and other finished products from Britain. Direction of Trade: The direction of foreign trade was heavily skewed towards Britain. Most of India's trade was with Britain and its colonies, with a very small portion directed towards other parts of the world. This trade pattern was a result of British economic policies that aimed to extract resources from India and limit competition for British manufacturers. India’s trade was not focused on developing independent economic relationships with other countries, but rather on reinforcing Britain's economic dominance.