'The restrictive policies under the colonial government adversely affected the structure, composition and volume of India's foreign trade.' Justify the given statement with a valid explanation.

Question

Accepted Answer

The given statement is correct, as the colonial policies were designed to serve British interests:

1. Structure: India was made an exporter of raw materials and an importer of finished goods, leading to a dependent trade structure.

2. Composition: Exports mainly included primary products like cotton and jute, while imports were manufactured goods such as cotton and woollen clothes and light machinery.

3. Volume: The trade volume was restricted and controlled to benefit Britain, limiting India's independent trade expansion. More than half of India's foreign trade was restricted to Britain.

Result: This led to de-industrialisation and hindered the growth of domestic industries in India, causing a huge drain of Indian wealth.