Question

comment on the state of exports and imports of the indian economy on the eve of Independence

Answer 1

During the colonial rule, the British followed a discriminatory tariff policy under winch they imposed heavy tariffs (export duties) on India's export of handicraft products while allowing free export of India's raw material to Britain and free import of British products to India. (i) Volume of Trade The British policies made Indian handicrafts exports costlier and its international demand fell drastically. Consequently, India's export basket during the colonial rule comprised mainly of primary product s like sugar, jute, raw silk, indigo, wool, etc and the imports comprised of finished consumer goods like cotton silk and woolen clothes and capital goods like light machinery from Britain. India registered large export surplus during the colonial period. (ii) Direction of Trade As the monopoly power of India's export and import rested with Britain, so, more than half of India's trade was restricted to Britain and the remaining imports were directed towards China, Persia (Iran), and Ceylon (Sri Lanka) The opening up of Suez Canal further intensified the monopoly power of the British over India's foreign trade It led to the last movement of goods from India to Britain and vice-versa. The surplus generated from India's foreign trade was not invested in Indian Economy, rather it was used for administrative and war purposes. This led to the drain of Indian wealth to Britain.

Answer 2

The state of export and imports of the Indian economy on the eve of Independence was mainly based on importing the machine made manufactured goods and becoming a exporter of raw materials

Explanation:

• India had become an important trading center and they were importing goods which were made on mass scale through machines in Britain. The goods consisted of like textiles and cotton, silk, woolen clothes machinery and more.
• The various policies and tariffs that was initiated by the British affected the trading of foreign goods. The British forced India to export the raw materials needed by the industries in Britain. They were exporting products like Indigo, cotton,sugar, wool and more
• The British controlled the exports and imports in India and most of the trading was done with the British and there some part of it which was done with China, Persia and Ceylon. There was a major increase in trading with opening of the Suez canal, but it was controlled by the British

To know more about Indian economy before independence

Why Indian economy was backward before independence?

https://brainly.in/question/14068236