Question

During the english period which wad in excess export surplus export deficit import surplus export surplus

Answer 1

Explanation:

Before the colonial period, India was a big player in the foreign trade. Having established itself well on the world map, pre-colonial India was blooming with opportunities. At the beginning of 19th century, the share of India in the world economy was around 20% which was steadily increasing. By the time British left India the share was reduced to around 4%. Thus the colonial rule paralyzed the foreign trade also by a large proportion.

Answer 2

Answer:

British manufactures flooded the Indian market over the nineteenth century. Food grain and raw material exports from India to Britain and the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. Thus Britain had a ‘trade surplus’ with India. Britain used this surplus to balance its trade deficits with other countries – that is, with countries from which Britain was importing more than it was selling to. This is how a multilateral settlement system works – it allows one country’s deficit with another country to be settled by its surplus with a third country