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

Question

Accepted Answer

**Volume and Direction of Foreign Trade during British Rule:**

1. **Exporter of Primary Products:** India exported raw materials like raw silk, cotton, wool, sugar, indigo, jute.

2. **Importer of Finished Goods:** India imported finished consumer goods like cotton, silk, woollen clothes and capital goods like light machinery.

3. **Monopoly Control:** British Government maintained monopoly control over India's exports and imports.

4. **Trade with Britain:** More than half of India's foreign trade was restricted to Britain, while rest was with China, Ceylon (Sri Lanka) and Persia (Iran).

5. **Suez Canal:** Opening in 1869 provided direct route for ships between India and Britain.

6. **Drain of Wealth:** Export surplus was used to pay for British office expenses, war costs, and invisible imports.