Question

Introduction on pre colonial and colonial foreign trade in india​

Answer 1

Answer:

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.

The major features of Indian trade in pre-colonial times were (i) a favourable balance of trade and (ii) a foreign trade most suitable to the level of manufacturing in India. A favourable balzince of trade meant an excess of exports over imports i.e. India exported more than it needed to import.