Why didn’t the trade with England benefit the Indian economy
Answers
Answer:
Explanation:
When the European traders started trade outposts in India, Indian exporters collected bullions in gold and silver from foreign merchant guilds like East India Company(EIC) for their exports.
The main export products were:
Agricultural produce like Spices, rice,wheat,etc.
Processed textile goods like fine cotton and silk
Handicrafts which were rare and costly
During this time, Indian economy was primarily a production centre catering to internal Indian and overseas markets.
British East India Company started minting their own coins and fixed the exchange rate between British coins and Indian rupee for exports and imports.
Industrial Revolution
During this time, Industrial Revolution was changing the dynamics of production in Europe. British producers developed core competence in production of textiles and other goods.
The working of these factories required high capital investments for machinery and high fixed costs. Thus they needed to have high production levels to recover these costs and for these high production levels, they needed large quantities of raw materials. Finally, they needed huge markets for selling these finished goods.
India had both these - large quantities of raw materials and a huge market. EIC through their unfair policies procured raw materials at cheap prices and exported them to England where they were converted into goods and sold in India at low prices.
England banned Indian imports of finished goods like textile. Faced with an onslaught of low priced British goods and unable to export locally produced goods to England, Indian production died a slow death.
By 1813, EIC converted India from a production centre to a mere procurement centre for raw materials and a market for selling British goods.
Trade usually results in exchange of technology, ideas and good practices so that both the participants get the benefits.
Due to colonial rule and the absence of strong Indian power centres, India could not get any of these things. Our ancestors sat back and watched as the Western countries grow rapidly. India had to wait till independence to start the process of getting expertise in production & manufacturing.
Answer:
Explanation:
Trade with England didn't benifit the Indian Economy because East India Company was a merchantile trade company. EIC also dreamt to become nawabs and rule the country. They took over almost whole India. They collected revenues from Indian people and used them in the trade.
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